The mediating effect of eco-friendly practices on the link between international market orientation and performance : evidence from Vietnamese small and medium enterprises

Objective: This study addresses significant gaps in the existing literature, which shows mixed results on the relationship between international market orientation and international performance. Moreover, the literature needs more research on the mediating role of eco-friendly practices in this dynamic. The study aims to rigorously examine both the direct and indirect effects of this orientation on performance, focusing on the exporting and manufacturing of small and medium enterprises (SMEs) in Vietnam to clarify these complex interactions. Research Design & Methods: The online survey comprised 319 exporting and manufacturing SMEs. Partial least square structure equation modelling served to examine the data. Findings: The findings reveal that adopting an international market orientation improves the international performance of those SMEs. Furthermore, this adoption drives the adoption of eco-friendly practices that lead to high international performance. Implications & Recommendations: This study implies that SMEs in the Vietnamese export sectors succeed in international markets by adopting an international market orientation. Besides, those SMEs benefit from this orientation, because it offers insight into environmental demands in the international markets. As such, SMEs adopt eco-friendly practices to offer products that meet those demands and gain success. Contribution & Value Added: This study advances the literature by assessing the mixed result of international market orientation, i.e. the international performance association within Vietnamese exporting and manufacturing SMEs. It confirms that international market-oriented firms tend to embrace eco-friendly practices like larger firms. It demonstrates that emerging-market SMEs can succeed internationally by adopting eco-friendly practices. It clarifies the mechanism by which international market orientation improves international performance.