Internationalisation and Its Influence on Sustainability and Business Practices: A Study of Small and Medium-Sized Construction Materials Manufacturers in Hungary

Abstract

Hungarian construction materials manufacturers face complex challenges in balancing internationalisation and sustainability. These firms need to handle global market dynamics while adapting to increased sustainability expectations from stakeholders, supply chains, and regulatory frameworks. This study investigates how and why these SMEs pursue internationalisation and sustainability, revealing their motivations, strategies, and challenges. The research suggests organisations should create harmonious business models that connect sustainability initiatives to their international expansion plans. They should use sustainability as a market differentiator, build knowledge-sharing networks, implement resource-based sustainability transitions, and adopt new technologies. Policymakers need to create specific support systems and motivational incentives for sustainable internationalisation. Potential challenges include constrained financial and human resources, differing levels of ESG awareness and implementation capabilities, intricate regulatory environments across markets, difficulties in measuring sustainability impacts, and the need to balance short-term costs with long-term benefits. The findings contribute to understanding the intersection of internationalisation and sustainability in SMEs, providing insights for business leaders and policymakers to develop more effective strategies and support mechanisms.