Environmental Strategy and Economic Performance: A Longitudinal Analysis of Sustainable Business Practices in Colombian Small Firms

Abstract

Small firms in emerging economies face strategic challenges in balancing environmental sustainability with economic performance. This longitudinal mixed-methods study examines 32 small enterprises in Barranquilla, Colombia, over an 18-month period, combining repeated quantitative measurements with qualitative interviews, site visits and follow-up workshops to analyse how environmental strategy implementation is associated with changes in resource efficiency and economic performance. Qualitative findings also highlighted marked sectoral differences in implementation pathways. Manufacturing and food-processing firms more frequently emphasised energy, water and waste controls as immediate operational priorities, whereas service and retail firms more often focused on procurement routines, packaging changes and administrative efficiency measures. Participants also reported that some sustainability dimensions were easier to adopt than others: green supply chain practices were often seen as feasible because they could be integrated into existing supplier relationships, while sharing economy practices were perceived as less compatible with current business routines, lower levels of digital integration and concerns about coordination or asset control. These qualitative patterns support the interpretation that the quantitative trends reflect gradual, context-dependent implementation processes rather than uniform or mechanically replicable effects.