A4 Conference proceedings

Corporate Environmental Orientation and SME International Performance: The Role of Business Model Innovation


Publication Details
Authors: Asemokha Agnes, Musona Jackson, Torkkeli Lasse, Saarenketo Sami
Publication year: 2018
Language: English
JUFO-Level of this publication: 0
Open Access: Not known

Abstract

Both
sustainability and business models (BM) have recently been identified as core
concepts in international business research. However, research has so far been
silent on their linkages and impacts to internationalization outcomes in
general, and on international entrepreneurship in the context of small- and
medium-sized enterprises (SMEs) in particular. This study seeks to respond to those
omissions, by exploring and analyzing the relationship between corporate
environmental orientation and SME international performance through the
mediating lenses of business model innovation (BMI). We empirically draw on a
cross industrial sample of 95 internationally operating Finnish SMEs through
both confirmatory factor analysis and ordinary least squares regression modeling. Results from the analysis show that corporate environmental orientation
(CEO) has a positive and significant impact on internationalizing firms’
overall performance in international markets. Moreover, business model
innovation mediates the relationship between environmental orientation and
international performance outcomes. The direct link between corporate
environmental orientation and firm’s financial performance is not supported.
Again, business model innovation proved to have a weak mediating effect between
the two constructs. We then discuss the implications of the study, which
contributes to the literature on international entrepreneurship by illustrating
how environmentally conscious organizational culture can lead to better market
outcomes and impact the ways internationalizing SMEs do business.


Last updated on 2019-12-02 at 11:26