DOI: 10.1108/cpoib-11-2024-0143 ISSN: 1742-2043

International ecopreneurship through a paradox lens: eco-SME decision-makers’ sensemaking and responses to internationalization tensions

Malgorzata Faget, Johannes Schaaper

Purpose

The internationalization of eco-small and medium-sized enterprises (SMEs) may expose decision-makers to paradoxical tensions as they seek to reconcile conflicting objectives and constraints across heterogeneous regulatory and market environments. Yet relatively little is known about how these decision-makers experience and respond to such tensions during international expansion. Adopting a paradox perspective, this paper aims to examine how individual-level sources of paradox interact with spatial conditions across international contexts and identifies the strategies used by eco-SME decision-makers to manage these tensions.

Design/methodology/approach

This qualitative, exploratory study is based on semi-structured interviews with 30 French founders and senior managers from internationalized eco-SMEs operating in diverse green sectors.

Findings

Building on the value dilemmas observed at the individual level, the authors identify three individual sources of paradox among eco-SME decision-makers. The authors show how spatial-contextual factors shape these tensions across both developed and emerging markets, reflecting institutional asymmetries and uneven market recognition of sustainability. Finally, the authors distinguish two types of paradox management strategies, defensive and proactive, which underpin distinct internationalization pathways, from opportunistic approaches to more innovation- and responsibility-oriented forms of international expansion.

Research limitations/implications

This study is subject to several limitations that open up different directions for future research. Firstly, the empirical material is drawn from eco-SMEs headquartered in France. As prior work suggests that cultural contexts shape how individuals perceive and engage with paradox (Keller et al., 2018; Leung et al., 2018), the findings may not fully capture the diversity of paradox experiences in other national settings. Studies contrasting developed and emerging economies could better examine how cultural and institutional configurations may influence both the salience and management of paradoxical tensions in internationalized eco-SMEs. Secondly, future research could examine more systematically how defensive and proactive paradox management strategies shape opportunity recognition, suppression or creation over time. Longitudinal studies could trace how decision-makers’ work on tensions influences the emergence of international opportunities and whether proactive engagement with paradox leads to more innovative or responsibility-oriented internationalization paths. Thirdly, the analysis has deliberately emphasized the individual level of decision-makers. This focus leaves open questions about how paradoxical tensions are negotiated collectively. Future studies could adopt multi-level designs to examine paradox navigation at team, organizational or ecosystem levels. Finally, the sample is predominantly male, making it unclear whether and how women in comparable roles would experience and manage paradoxical tensions. Future research could explore how gendered expectations intersect with sustainability commitments and internationalization choices.

Practical implications

This research also has practical implications. For managers of sustainable ventures, it highlights the importance of cultivating a paradox mindset, which can support more reflective, innovative and ethically coherent decision-making in cross-border contexts. For policymakers, this study suggests that institutional misalignments across countries may distort or constrain the international expansion of eco-SMEs. Policy instruments that reduce regulatory uncertainty, reward responsible internationalization practices and support experimentation with inclusive business models may help create conditions under which eco-SME decision-makers can engage with paradoxes more proactively.

Originality/value

The study repositions international ecopreneurship within a paradox perspective by showing how individual characteristics and heterogeneous spatial settings shape the paradox management strategies adopted by eco-SME decision-makers during internationalization of their ventures.

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