Sustainable Entrepreneurship and SMEs' internationalization

The research is motivated by the need to understand how sustainable entrepreneurship (SE) behaviors and practices influence the internationalization strategies and outcomes of small and medium-sized enterprises (SMEs). Sustainability has become a significant topic in business research, especially with the recognition of the triple bottom line (TBL) concept, which integrates environmental, social, and economic aspects in business practices (Casado-Belmonte et al., 2020). SE merges these sustainability goals with entrepreneurial activities, emphasizing ecological and social responsibilities alongside economic growth (Isaak, 2002; Shepherd & Patzelt, 2011). A crucial area for future research involves the relationship between SMEs and sustainability (Sanders, 2022). Research has shown that the values of owners, directors, and employees in German Mittelstand companies often differ from those in other firms, showing a stronger commitment to sustainability (De Massis et al., 2018). It remains uncertain if these differences extend more broadly to SMEs. Locally embedded SMEs and family businesses, with their intergenerational planning horizons, long-term orientation, and high levels of social responsibility, may be uniquely positioned to tackle today's significant challenges. This potential sustainability advantage underscores the importance of exploring how these firms can integrate sustainability into their global strategies to achieve competitive advantage and address socio-environmental issues. This study aims to explore this intersection to uncover how SMEs can incorporate sustainability into their international strategies to achieve competitive advantage and address socio-environmental challenges? This research will investigate the mechanisms through which SE practices affect the internationalization of SMEs by focusing on the pivotal role of social networks. Social networks are instrumental in providing SMEs with critical resources, building trust, enhancing knowledge, and developing capabilities necessary for successful international ventures (Han et al., 2024). The study will delve into how these networks facilitate market choice, entry mode, and performance, influencing the overall internationalization process of SMEs. Understanding the interplay between SE and internationalization is crucial for several reasons. Firstly, SMEs make up a significant portion of global business, accounting for 90% of companies and over half of global employment (Audretsch & Guenther, 2023). Despite their prevalence, the success of SMEs is not guaranteed; their performance varies widely based on contextual factors and their ability to innovate and internationalize. SE offers a pathway for SMEs to enhance their competitiveness by integrating sustainability into their core strategies, addressing both market demands and global sustainability challenges (Shepherd & Patzelt, 2011; Hull et al., 2007). Secondly, the role of social networks in facilitating internationalization is pivotal. Social networks provide SMEs with critical resources, build trust, enhance knowledge, and develop capabilities needed for successful international ventures (Han et al., 2024). These networks help SMEs navigate the complexities of foreign markets, from initial entry to post-entry operations, by leveraging interorganizational collaborations and personal relationships (Lindstrand & Hånell, 2017; Zahoor & Al- Tabbaa, 2021). Recent research has extended the examination of social networks from organizational to individual and national levels, revealing their profound impact on market choice, entry mode, internationalization degree, and performance (Han et al., 2024). Moreover, collaborative innovation strategies, as highlighted by Audretsch and Guenther (2023), enable SMEs to overcome resource constraints associated with their smaller size. Engaging in inter-organizational collaborations (IOC) is a critical strategy for SMEs to access new markets, share resources, and foster innovation, which are essential for successful internationalization. Given the global push for sustainable development, there is a pressing need to understand how SE can be leveraged for international growth. Internationalization offers a viable pathway for sustainable businesses to scale their impact and reach. Historically, research on internationalization has focused on traditional entrepreneurial ventures that prioritize economic gains. However, the integration of sustainability into international business strategies remains underexplored, creating a significant research gap (Zolfaghari Ejlal Manesh & Rialp-Criado, 2019). Moreover, the success of SMEs in the global market can contribute significantly to global economic stability and growth. SMEs are identified as engines of internationalization, contributing substantially to global economic activity (Del Sarto et al., 2021). Innovative and internationalized SMEs tend to be concentrated in specific spatial and institutional contexts, highlighting the importance of local ecosystems in supporting these activities (Guenther et al., 2022).