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How Green Technology and Company Green Commitment Affect SME Internationalization Performance Through Eco-Innovation: The Moderator of Government Support Programs

Author

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  • Jinghui Wang

    (School of International Studies, Universiti Utara Malaysia, Sintok 06010, Kedah Darul Aman, Malaysia)

  • Noor Afzainiza binti Afendi

    (International Business Program, Universiti Utara Malaysia, Sintok 06010, Kedah Darul Aman, Malaysia)

  • Muhamad Ali Imran Bin Kamarudin

    (Entrepreneurship Program, Universiti Utara Malaysia, Sintok 06010, Kedah Darul Aman, Malaysia)

Abstract

This study investigates the relationship between green technology, company green commitment, and the internationalization performance of small and medium-sized enterprises (SMEs), with a particular focus on the mediating role of eco-innovation and the moderating effect of government support programs. Based on a resource-based view, we develop and test a comprehensive model using the partial least squares structural equation modeling (PLS-SEM) method to determine the variables that significantly affected the mechanisms (i.e., green technology, company green commitment) and internationalization performance. The results revealed that both green technology and company green commitment positively affect the internationalization performance of SME with eco-innovation mediating the relationships. Furthermore, the government support programs moderate the relationship between SMEs’ green technology/company green commitments and internationalization performance by strengthening this relationship under higher levels of institutional support. This suggests that policymakers need to focus on the intensity and effectiveness of government support programs, and enterprises should actively integrate high-quality policy resources to maximize international competitiveness. The findings contribute to sustainable international business by elucidating the mechanisms through which sustainable development translates into competitive advantages. Practical implications suggest that SME managers should strategically align technological and commitment-based green elements while actively leveraging governmental support mechanisms to optimize international expansion.

Suggested Citation

  • Jinghui Wang & Noor Afzainiza binti Afendi & Muhamad Ali Imran Bin Kamarudin, 2026. "How Green Technology and Company Green Commitment Affect SME Internationalization Performance Through Eco-Innovation: The Moderator of Government Support Programs," Sustainability, MDPI, vol. 18(5), pages 1-23, February.
  • Handle: RePEc:gam:jsusta:v:18:y:2026:i:5:p:2213-:d:1871204
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