Go international to become sustainable: Insights on internationalization, innovativeness, and green practices in SMEs

ABSTRACT Most of the literature on the internationalization of SMEs has focused on the determinants of their international expansion or the impact of international operations on business performance. This study offers a perspective on the extent to which exporting SMEs are able to leverage their external environment and innovation efforts to build more sustainable businesses in line with today’s stakeholder expectations. Drawing on institutional theory, sustainability, and ambidexterity literature, the study suggests that SMEs with a higher degree of international operations and active involvement in innovations are more likely to adopt more green practices. Furthermore, a more detailed picture of the role of innovation efforts in this complex mechanism is provided. The study highlights the importance of internationalization and innovation for implementing more sustainable practices in SMEs and offers implications for practitioners and policymakers.