Responsible business practices in internationalized SMEs

Abstract

This dissertation focuses on the role of responsible business practices (RBPs) in the operations of internationalized small- and medium-sized enterprises (SMEs). Most research has assumed that SMEs are resource-constrained entities, as the existing research in international business is focused on the corporate social responsibility of large multinational enterprises. However, SMEs are the backbone of the economy in most countries, and in recent decades, they have become increasingly involved in international business while practicing social and environmental RBPs and contributing to global sustainability.

The research question “What is the role of responsible business practices in internationalized SMEs?” guides this dissertation, and institutional theory and dynamic capability view are the theoretical frameworks used. Four publications examine the antecedents, processes, and performance outcomes of SMEs’ involvement in RBPs and internationalization at the organizational and institutional levels. The dissertation is a mixed-method study, which uses quantitative data collected from Finnish SMEs and qualitative data collected through interviews with partnering SME dyads originating from Finland and Russia.

The results suggest that research on SME internationalization and SME business responsibility has common grounds in terms of drivers and outcomes and highlight the intersections of these two streams as a fruitful research area. The main findings of this dissertation demonstrate that social responsibility plays a crucial role in transferring and increasing the contribution of organizational capabilities and environmental responsibility to SMEs’ competitive and international performance.