Organizational capability for change and performance in artisanal businesses in Mexico

Purpose: Businesses in Mexico, particularly small and mid-sized companies, are faced with numerous challenges: a lack of competition, difficulty in positioning and maintaining oneself in the market, irrational use of natural resources, and poverty in the environment in which they develop. In spite of these problems, many are able to succeed; however, there is limited knowledge about how these businesses could implement organizational changes that would positively impact their results. Design/methodology/approach: Using dynamic capabilities theory and survey data obtained from pottery businesses in several artisan communities in Mexico through the application of face-to-face interviews, this paper analyzes the relationship between organizational capability for change (OCC) and economic and environmental performance. Findings: This research proves that OCC positively and significantly impacts economic and environmental performance. Results contribute to the existing literature on OCC in the context of poverty. Originality/value: This study offers empirical research that illustrates the relationship between OCC and the environmental and economic performance of pottery businesses. Additionally it contributes to a field of knowledge in progress; that is, OCC in contexts of subsistence where poverty is a constant issue. Artisans living in this context can also develop business capabilities that contribute to the permanence of their business in the market.