Is it possible to balance sustainability with international growth?

Social ventures are organisations that prioritise societal and environmental contributions over profit maximisation. S M Feroj Mahmood’s dissertation investigates how these types of ventures can modify their business models to scale internationally while maintaining their commitment to sustainability.

– To grow internationally, social ventures need to have a deep understanding of local markets, adapt distribution methods, and form strong partnerships. Cultural differences and geopolitical shifts make expansion complex, explains Mahmood, who will defend his dissertation at the University of Vaasa on 11 December.

The research offers practical guidance for policymakers, investors, and practitioners aiming to promote sustainable international business growth, drawing insights from interviews with leaders of four Finnish international social ventures.

– For example, one of the social ventures collaborates with women artisans in rural Kenya, Ghana, and Tanzania to create handmade baskets, bags, and home home décor. These products are then exported to Nordic countries, the USA, Switzerland, Germany, Australia, Japan, and many other countries to customers worldwide. This initiative provides steady employment and income to local communities, empowering women and improving their welfare, Mahmood explains.

Balancing sustainability and profitability

Although the main objective of social ventures is to benefit society, they must also generate sufficient profit to sustain operations. By adjusting their business model for internationalisation, social ventures can broaden their ability to create meaningful societal impact while maintaining economic viability. 

– Before starting this research, I considered the nature of social ventures and questioned the assumption that they operate without generating profit. What I discovered is that while their primary focus is societal impact, profitability is essential for keeping the business running. The success of international social ventures lies in their ability to adapt without losing sight of their core values, Mahmood says.

The dissertation combines a systematic literature review of 134 scholarly papers and a bibliometric analysis of 60,426 citations from the Web of Science (WOS). Additionally, Mahmood conducted 14 in-depth interviews with founders, CEOs, and CFOs of four Finnish social ventures, providing empirical evidence on how business models evolve during internationalisation.

Public defence

The public examination of MBA S M Feroj Mahmood’s doctoral dissertation “Essays on Extant Knowledge in International Sustainable Entrepreneurship and Internationalization of Social Ventures” will be held on Wednesday 11 December 2024 at 12 in auditorium Nissi at the University of Vaasa.

Participation in the defence is possible also online: https://uwasa.zoom.us/j/66959303009?pwd=Xc1yXEI6qKU5adKL5WWgl8DyMSMI8a.1 

Password: 340134

Professor Antonella Zucchella (University of Pavia) will act as opponent and Professor Peter Gabrielsson as custos. 

Doctoral dissertation

Mahmood, S M Feroj (2024) Essays on Extant Knowledge in International Sustainable Entrepreneurship and Internationalization of Social Ventures. Doctoral dissertation. University of Vaasa.

Publication pdf