Sustainability and Knowledge Dynamics in Entrepreneurial Growth: Evidence from Internationalizing Finnish SMEs

Abstract The impact of environmental sustainability and knowledge dynamics on entrepreneurial growth and internationalization could do with added research focus. However, the rising importance of corporate sustainability and social responsibility in global business and entrepreneurship increasingly requires that these interdependencies be assessed. We assess these dynamics empirically through both quantitative and qualitative analyses. With the former, we employ a cross-sectional sample of Finnish small- and medium-sized enterprises (SMEs) to illustrate the impact of learning orientation and environmental sustainability on their growth and internationalization. Specifically, we find that their impacts on entrepreneurial growth depend on the stage of their internationalization: Learning orientation predicts first foreign market entry among the enterprises, while environmental orientation predicts the subsequent performance among internationally operating enterprises. In addition, we find no moderation or mediation effects between learning orientation and sustainability, suggesting that their impacts are distinct from each other. We conclude by discussing these results and their implications on international entrepreneurial growth, and knowledge and sustainability dynamics in the entrepreneurial context.