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This study examines an emerging yet somewhat neglected theme in international and global marketing literature, namely the role of corporate social responsibility (CSR) and market-sensing capability in international enterprises. Specifically, we illustrate how CSR and market-sensing capability impact international performance in the context of small-and medium-sized enterprises (SMEs). The results from a sample of 85 internationalized Finnish SMEs indicate that social responsibility serves as a mediator of market-sensing capability on international performance. Moreover, market-sensing capability along with social responsibility also has a positive direct effect on an SME's international performance. Thus, the study links global marketing, strategic management and sustainability literatures to explain the emerging paradigm of sustainable international entrepreneurship.

Sustainability is a global trend that requires balancing environmental, social, and financial concerns. Issues related to social and environmental responsibility have attracted growing research interest in the research domains on small businesses and large multinational companies, but they are yet to be explored in the context of internationalized small and medium-sized enterprises (SMEs), which experience the liabilities of foreignness and smallness but whose share of and impact on the world economy are growing. This study connects entrepreneurial decision-making with business responsibility and explores the effects of effectual decision-making logic on responsible business practices (RBPs) and their outcomes in the context of internationalized SMEs.The empirical part of the study was based on the survey data from a sample of 179 Finnish SMEs. The results obtained via linear regression modeling showed that a more pronounced effectual logic can lead to more RBPs in internationalized SMEs. The RBPs, in turn, were found to have a positive impact on the competitive performance of these SMEs, thus serving as mediators. This study contributes to the literature on responsible decision-making in both the research areas of internationalization of SMEs and small business responsibility.

This study explores the relevance of corporate social responsibility (CSR) in the context of small and medium-sized enterprises (SMEs). The role of CSR in SMEs has so far been scarcely researched, and the relationship between internationalisation and CSR development in SMEs, in particular, could do with the further study. Since it has been found that organisational capabilities and CSR both impact SME performance, we illustrate these relationships and differentiate between the domestic and internationalised SMEs. The empirical part of the study is based on the survey data from a sample of 141 Finnish SMEs. Results obtained via linear regression modelling show that network competence plays a part in contributing to CSR, which in turn positively affects the SME’s competitive performance, but only in internationalised SMEs. CSR is found to mediate the relationship between network competence and competitive performance. The study thus contributes both to the literature on CSR as well as that on SME internationalisation and argues for the importance of the former as a true predictor of enhanced SME competitiveness.

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