Eco-innovation drivers really improve firm performance? Sustainable performance mediating role in Mexican automotive industry

The increasing pressure that manufacturing companies must reduce pollution levels and environmental degradation by society, is forcing firms to implement new strategies that allow them to produce environmentally friendly products, without neglecting their economic measures. In this sense, the literature is increasingly considering eco-innovation as a strategy that allows firms not only to improve firm performance, but also sustainable performance. However, little is known about the influence of eco-innovation on sustainable performance and firm performance. The objective of this study is the analysis of the existing relationship between eco-innovation, firm performance, and sustainable performance, since there are relatively few studies published in the literature that analyse these three constructs together. Likewise, a questionnaire was distributed to a sample of 460 companies in the automotive industry in Mexico, analysing the dataset through PLS-SEM. The results obtained suggest that eco-innovation have a positive influence on both firm and sustainable performance of the automotive industry. In conclusion, empirical evidence has been provided that demonstrated that eco-innovation has a positive effect on firm and sustainable performance, as sustainable performance significantly improves the relationship between eco-innovation and firm performance.