Digitalization and environmental sustainability as alternative strategies to improve Peruvian MSEs’ export performance: a preliminary study

Abstract

Micro and small enterprises (MSEs) in emerging economies face significant hurdles in enhancing their export performance and international competitiveness. In this context, this study investigates two potential strategic grow paths—digitalization and environmental sustainability practices—and their impact on MSEs’ export performance within the context of an emerging market. Utilizing data from 95 Peruvian manufacturing MSEs, the results reveal positive associations between digitalization initiatives, environmental sustainability orientation, and export performance outcomes. However, the response surface analysis indicates the presence of an equilibrium point, where the concurrent pursuit of digitalization and environmental sustainability initiatives can potentially undermine export performance outcomes. This equilibrium suggests that while MSEs at some point may need to strategically prioritize one growth path over the other in the short to medium term, the long-term objective should be to develop a balanced approach that integrates both digitalization and sustainability initiatives. The study highlights the need for targeted policy interventions, capacity-building programs, and strategic advisory support mechanisms to assist these firms in navigating the complexities inherent in balancing digitalization and environmental sustainability objectives.