Mediating role of internationalization readiness in the adoption of social sustainability practices: Evidence from Vietnamese handicraft companies

Abstract

AbstractThis study investigates the mediating role of internationalization readiness in the adoption of social sustainability practices (SSP) by companies in the Vietnamese handicraft industry. Data were collected from 325 Vietnamese handicraft companies through a questionnaire survey to empirically validate a conceptual model. The findings reveal that government, laborer, and market pressures on SSP adoption are fully mediated by internationalization readiness. The results also show that supplier pressures influence SSP adoption both directly and through internationalization readiness as a mediator. Furthermore, both internationalization readiness and SSP adoption can positively influence overall organizational performance. This study is the first of its kind to corroborate the application of the stakeholder theory and the resource‐based view theory to explore the impactful role of internationalization readiness in SSP adoption. It provides significant insights for managers, public policymakers, and sustainability practitioners to promote greater adoption of SSP across the entire supply chain through fostering internationalization readiness of companies.