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Purpose

Eco-innovation is a relatively recent construct in the literature, which nowadays more and more researchers and academics consider as one of the strategies that generate a higher level of sustainable and business performance. However, little is known about the influence of eco-innovation practices on sustainable performance and business performance, particularly in the automotive and auto parts industry. Therefore, this paper aims to fill this knowledge gap and explore the aforementioned interdependence.

Design/methodology/approach

The influence of eco-innovation practices on sustainable performance and business performance is investigated through a research framework consisting of 5 constructs, 25 items and 6 hypotheses derived from an extensive review of the literature. A self-administered questionnaire was distributed to 460 companies in the automotive and auto parts industry in Mexico. The data were analyzed through a confirmatory factor analysis, descriptive statistics and structural equation modeling.

Findings

The results obtained indicated that eco-innovation practices have a positive influence on both sustainable performance and business performance in the automotive and auto parts industry.

Originality/value

This paper provides further insightful evidence of the influence of eco-innovation practices on sustainable performance and business performance, particularly in the automotive and auto parts industry.

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