Environmental Strategy and Competitive Advantage in Mezcal Businesses in Oaxaca, Mexico

In this article we examine the relationship between environmental strategy and competitive advantage using natural-resource-based theory. We did a transverse-cut quantitative analysis on a sample of 80 small mezcal (distilled alcoholic beverage made from agave angustifolia haw) businesses in Oaxaca, Mexico. We used structural equations modeling for hypothesis testing; our results reveal a direct and positive relationship between environmental strategy and future positioning, and between environmental strategy and business partnerships. This implies that environmental strategies implemented by the palenquero (the owner or manager of a mezcal business) can generate competitive advantages in future positioning and partnerships, which improve business productivity and help preserve the natural environment