Comparing cleaner production potential in Colombian and Mexican SMEs

The adoption of sustainability practices in small and medium enterprises (SME) has been an issue of growing importance given SMEs predominance and contribution to environmental degradation, particularly in emerging markets.... [ view full abstract ]

The adoption of sustainability practices in small and medium enterprises (SME) has been an issue of growing importance given SMEs predominance and contribution to environmental degradation, particularly in emerging markets. This research analyses differential performance in cleaner production dissemination among small and medium-sized enterprises operating in emerging markets such as Colombia and Mexico. In both countries, a similar sustainable supply network mechanism was applied, to disseminate cleaner production in a significant group of SMEs. Cost-benefits analysis regarding economic and environmental gain is performed to review differences on system levels such as project types, firm categories, network types and country contexts. The methodology used is based on the models applied by van Hoof & Lyon to establish cost-benefit analysis for CP projects designed and implemented by SMEs in Mexico. The main findings suggest that the firms participating in the program in Mexico (PLAC) achieved better economic benefits than those participating in the Colombian program (RedES-CAR). However, in terms of environmental benefits Colombian firms surpassed Mexican ones achieving higher reductions in water consumption, energy usage, and waste generation. Both programs had broad participation of micro, small and medium enterprises, although RedES-CAR had greater participation of micro and small firms than PLAC, which presented higher involvement of medium-sized firms. PLAC gathered solely industrial networks, whereas RedES-CAR assembled networks composed of firms in the agriculture, livestock, construction, services and industry sectors. This study uses empirical, longitudinal evidence to deepen on the understanding of country, company and project characteristics that may influence outcomes of cleaner production implementation. Moreover, it provides a broader, multi-country comparison of the potential economic and environmental benefits of sustainable supply initiatives in emerging markets. The paper has possible implications that can contribute towards a broader implementation of innovation for sustainable development.