Abstract

DE LA PAZ HERNANDEZ GIRON, José; DOMINGUEZ HERNANDEZ, María Luisa  and  MENDOZA RAMIREZ, Luis. Performance of handcraft business after the social movement of 2006 in Oaxaca, Mexico. Espiral (Guadalaj.) [online]. 2010, vol.16, n.48, pp.205-240. ISSN 1665-0565.

The aim of this study is to analyze the relationship between hostile environment and business performance in 74 handcraft businesses. The model tested assumes that the survival strategies used by craftsmen in order to face up to the social, economic and political hostile environment caused by the confrontation between the Governor Ulises Ruiz and the Popular Assembly of Peoples of Oaxaca (APPO ), modify the relationship between hostile environment and handcraft business performance. A bivariate correlation analysis to test the relationship between hostile environment and performance, and a partial correlation to determine the effect of the survival strategies on such relationship were used. According to the results, the economic system crisis, regulatory pressures and corruption are significantly and negatively correlated with the performance of handcraft businesses. The three survival strategies used by the craftsmen, to counteract the effect of the hostile environment, are: social capital management, management of external relations and competitive behavior. These strategies ensure the decrease on the perception of the negative effect of the economic system crisis and the increase on the perception of profitability and growth in earnings.

Keywords : performance; hostile environment; Oaxacan economic crisis; survival strategies; handcrafts.

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