Sustainability as a market niche for internationalization of a born global SME: The case of a Central Eastern European firm strategy

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Abstract

Classical models often describe the internationalization of small and medium-sized enterprises (SMEs) as a gradual process and data underpins that SMEs are less likely to engage with foreign markets compared to larger firms. However, globalization and the proliferation of niche market opportunities stimulated some, primarily knowledge-intensive, SMEs to internationalize rapidly and to a great extent (Mushtaq et al., 2023). Such SMEs may play a crucial role in responding to global challenges, such as environmental sustainability, by offering economically viable solutions with global applicability. Yet, understanding the most important factors that affect the success and pace of their internationalization process requires further research. The purpose of the study is to contribute to the existing body of knowledge through the in-depth analysis of a born global (BG) Hungarian SME that offers an innovative and sustainability-focused service, with the aim of identifying the key driving forces behind its rapid international expansion. The paper uses a semi-structured interview-based case study method to respond to the call for geographical diversification in this research field and engages in the discussion by concluding that the entrepreneurs’ mindset and attitude play a pivotal role in capitalizing on a sustainability-oriented niche opportunity on the international stage, even amidst financial constraints.

Keywords: Internationalization, Born Global, SME, Renewable Energy, Sustainability

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: F2, L2, L8

Received: 16.01.2024
Accepted: 19.08.2024
Published online: 22.08.2024

How to cite this paper: Balla, S. (2024). Sustainability as a market niche for internationalization of a born global SME: The case of a Central Eastern European firm strategy. Corporate & Business Strategy Review, 5(4), 31–42. https://doi.org/10.22495/cbsrv5i4art3