Green export strategies and SMEs export performance: mediating roles of innovation, readiness, and activities

Purpose

This study aims to investigate the relationship between institutional support, green export strategies, and export performance among small and medium-sized enterprises (SMEs) operating in various sustainability-focused sectors.

Design/methodology/approach

Utilising a quantitative approach, structural equation modelling (SEM) is employed to analyse data collected from 227 SMEs in sectors including sustainable agriculture, eco-friendly consumer goods, special woven fabrics, organic food and beverages, green fashion and textiles, and health and wellness.

Findings

The study reveals a significant association between institutional support and key aspects of green export readiness, green export activities, and green innovation. Moreover, mediating roles of green innovation, green export readiness, and green export activities are identified, elucidating their influence on the relationship between institutional support and green export strategy. Importantly, effective green export strategies positively impact export performance, enhancing SMEs’ competitive positioning in global markets.

Originality

This research contributes novel insights into SMEs’ engagement in green export, shedding light on the critical role of institutional support and the mediating mechanisms that facilitate the adoption of successful green export strategies.

Research limitations

One limitation of this study is the cross-sectional nature of the data, which restricts the ability to establish causal relationships. Future research could explore longitudinal data to further investigate the dynamics between institutional support, green export strategies, and export performance.

Practical implications

The findings provide valuable insights for SMEs seeking to enhance their sustainability-driven international business practices. Managers can leverage institutional support and focus on developing green export strategies to improve their export performance and competitiveness in global markets.

Social implications

By embracing green export strategies, SMEs can contribute to sustainable development goals and promote environmentally responsible practices in the global marketplace, thereby fostering positive social and environmental impacts.