Customer green demand and competitive pressure as drivers of Eco-innovation and sustainable competitive performance: Evidence from Mexican firms

Abstract

Globally, interest has been increasing in sustainable development, which involves understanding both external and internal factors that enable the implementation of strategies to mitigate environmental damage and achieve a performance that is both competitive and sustainable. In the context of emerging countries, research on this topic has been scarce. Therefore, the purpose of this study is to contribute empirical evidence on the influence of two external factors—customer green demand and competitive pressure—on eco-innovation and its effect on sustainable competitive performance. The study was conducted with a group of 184 enterprises in the manufacturing sector in Mexico. Data were analyzed using AMOS version 26 through structural equation modeling. The results indicate that both factors have a positive and significant influence on eco-innovation, which in turn positively affects sustainable competitive performance. These findings deepen the understanding of the determinants of eco-innovation and its effects on business sustainability, as well as their practical implications in an emerging country.