Sustainable strategies and firm performance in manufacturing industry of Coahuila, Mexico

Abstract

Purpose Adoption and implementation of sustainable strategies (SS) in firms have been widely studied; however, there is scarce evidence of factors that affect the overall firm performance (FP). Therefore, in this research the variables knowledge management (KM) and professionalization (PR) toward the adoption of SS and their impact on FP are promoted. Design/methodology/approach Data from 120 firms in manufacturing industry in Coahuila, Mexico, were collected, and the study is based on the PLS-SEM technique. Findings The results revealed that (1) KM and PR present a positive impact on SS and (2) SS are positively related to FP. Practical implications For manufacturing managers, it is necessary to implement SS that meet the expectations of stakeholders, in addition to training human resources with the ability to achieve the aims of the firm and at the same time take care of the environment. As for corporate policymakers, it is essential that they promote global environmental care strategies based on collaborative business. Originality/value This research contributes to literature on business management, mainly to the incorporation of SS that allow boosting the economic aspect, but without neglecting social and environmental part.