Synergizing board dynamics, sustainability, and strategy for international success

Abstract

This study investigates the dynamic nexus between board characteristics, sustainability initiatives, and corporate strategies, offering critical insights into their collective impact on international performance. Utilizing a structural equation model and data from Colombian SMEs, our research underscores the influential role of diverse board attributes, encompassing social and human capital, in shaping managerial practices and decision‐making processes, ultimately influencing the outcomes of internationalization endeavors. The study emphasizes the significance of internally and externally well‐connected boards in facilitating effective internationalization efforts, affirming previous research highlighting the positive influence of board social capital on international performance. Furthermore, it reveals that board human capital, particularly directors with expertise in international business, substantially contributes to informed global strategy, empowering managers to craft robust internationalization approaches. The study's pivotal finding lies in the interactive impact of organizational Sustainability, advocating for a corporate strategy centered on Sustainability, which fosters a competitive advantage and advances international performance.