The Impact of Business Internationalisation on Corporate Social Responsibility: A Study of Peruvian Manufacturing Firms

Abstract

Internationalisation can profoundly reshape corporate social responsibility (CSR). As companies expand into global markets, they not only seek to boost revenues but also to strengthen their social impact. This study explores the influence of internationalisation on the CSR performance of Peruvian manufacturing firms between 2019 and 2022, drawing on the theoretical frameworks of Johanson and Vahlne, the Uppsala model, and Merubia’s theory of international networks. Using panel data econometric models, this study analyses a sample of 21 manufacturing companies based in Lima. It examines how CSR performance relates to key dimensions of internationalisation, including foreign sales, geographic diversification, and cultural diversification. The findings reveal a significant relationship between internationalisation and CSR, suggesting that firms enhance their operations by integrating responsible and sustainable practices throughout their international expansion.

1. Introduction

Between 2019 and 2022, Peruvian manufacturing firms exhibited a significant gap in the adoption of Corporate Social Responsibility (CSR) policies, particularly in the context of their internationalisation processes. This gap is reflected in the limited integration of sustainable practices, as well as the persistence of poor labour conditions and insufficient accountability regarding environmental and social standards. In this context, internationalisation represents a crucial factor for CSR by significantly improving the well-being of citizens in the markets where companies operate. However, this process may also result in negative outcomes, such as environmental pollution and poor working conditions [1].

Nowadays, internationalisation has become a crucial topic in the business world, as companies face growing pressure to expand globally to boost their revenues. At the same time, they are increasingly expected to contribute to the public good through socially responsible practices, generating a positive impact on society [2]. Both corporate social responsibility (CSR) and internationalisation serve as key drivers for acquiring and developing valuable resources—such as in-depth market knowledge and reputational capital—which are essential for sustaining competitive advantages in a globalised environment [3].

The international expansion of firms facilitates access to new markets, advanced technologies, and alternative sources of financing. This, in turn, enhances profitability, broadens the customer base, and mitigates risks through diversification. Corporate Social Responsibility (CSR), understood as a voluntary business strategy, complements this process by aligning organisational practices with stakeholder expectations across diverse contexts [4]. CSR aims to improve the social, economic, and environmental impact of organisations through responsible actions and practices [5]. Social influence originates from a variety of stakeholders, including trade unions, consumers, environmental organisations, governmental bodies, regulatory authorities, and non-governmental associations. These actors seek to promote the adoption of CSR-oriented practices by companies in the context of their international operations [6]

The literature examining the impact of Corporate Social Responsibility (CSR) on business activity encompasses a wide range of practices aimed at understanding how CSR is linked to specific aspects of social performance [7]. This includes studies that explore the influence of CSR on companies’ relationships with local communities, the treatment and well-being of workers, the protection of women’s rights and those of disadvantaged groups, as well as environmental sustainability [8]. Such research also evaluates the extent to which socially responsible principles are embedded within business models that offer goods and services in the marketplace.

Moreover, several studies have focused on how CSR shapes the internationalisation strategies of firms, identifying key dimensions and variables that facilitate or hinder this process [9,10]. These analyses consider the role of CSR in enhancing firms’ financial performance, influencing strategic decision-making in foreign markets, and promoting international diversification by strengthening reputational capital and stakeholder trust [11].

Overall, the existing literature highlights that CSR is not merely a peripheral concern but a strategic asset that can generate competitive advantages in the context of global expansion.

On the other hand, the economic context of manufacturing production in Peru has shown significant fluctuations. In December 2019, the Manufacturing Production Index fell by 5.50% compared with the same month of the previous year, mainly due to a sharp contraction in the primary sub-sector, which recorded a decrease of 22.98% [12]. In December 2020, manufacturing output increased by 9.21%, reversing nine months of negative results caused by the impact of COVID-19 and the restrictions of the National State of Emergency declared in March 2020 [13]. At the close of 2021, manufacturing production registered an increase of 1.4% over December 2020, driven by higher activity in the non-primary sub-sector (+9.5%), in contrast to the decline in the primary sub-sector (−14.8%) (Ministry of Production, 2021). However, in December 2022, manufacturing production experienced a decline of 4.6% compared with December 2021, determined by the lower activity in the non-primary sub-sector (−8.1%) and growth in the primary sub-sector (+4.2%) [14].

In Latin America, Peru ranks among the top five countries in the manufacturing sector, along with Uruguay, Argentina, Mexico, and Chile, all of which are expanding their industrial production [15]. In 2022, manufacturing activity in Peru recorded an increase of 1.0% in the non-primary sub-sector, while manufacturing of primary resource processors decreased by 2.9% [16].

This context underscores the importance of understanding how the dynamics of manufacturing production and internationalisation shape corporate social responsibility (CSR) practices among Peruvian firms. Accordingly, this study investigates the impact of internationalisation on the CSR performance of Peruvian manufacturing companies during the period 2019–2022. Three specific research questions are addressed: (i) What is the impact of the percentage of foreign sales on CSR? (ii) How does international geographical diversification affect CSR? and (iii) How does international cultural diversification influence CSR?

The corresponding hypotheses are as follows:

H1. 

Foreign sales have a positive impact on CSR.

H2. 

International geographical diversification has a positive impact on CSR.

H3. 

International cultural diversification has a positive impact on the CSR performance of Peruvian manufacturing firms during the study period.

Through the analysis of these questions, the research provides a detailed examination of the relationship between internationalisation and CSR, contributing to a broader understanding of how different dimensions of internationalisation can influence the responsible practices of companies in emerging markets. This approach is crucial to identify the underlying dynamics that can enhance or constrain corporate sustainable development in similar contexts. Ultimately, the findings of this study aim to provide valuable empirical and scientific insights for academics, policymakers, and business leaders interested in promoting more effective CSR practices aligned with global market demands.

Nevertheless, despite the growing academic interest in exploring the relationship between corporate internationalisation and CSR, there remains a significant gap in the literature regarding empirical studies focused on emerging economies [17], particularly within the Peruvian context. Few investigations have examined how specific dimensions of internationalization—such as the percentage of foreign sales, geographical diversification, and cultural diversity—directly influence the CSR practices of manufacturing firms [1,18,19,20]. This gap becomes even more relevant when considering the productive instability of Peru’s manufacturing sector in recent years and the limited integration of theoretical frameworks, such as the Uppsala model and the network model, in studies applied to Latin America. Consequently, there is a critical need to generate both theoretical and empirical evidence to better understand how internationalisation can serve as an effective mechanism to enhance corporate social and sustainable engagement in developing contexts.

Finally, it is necessary to emphasise that there are currently few research studies that specifically address this relationship in the Peruvian context. In this sense, we analyse the strategies and indicators of selected Peruvian manufacturing companies from the industrial, agricultural, and mining sectors for the years 2019 to 2022. The contribution of this paper to the academic literature lies in the possibility of carrying out an academic type of literary reflection that encompasses the theories of the Uppsala model and the network model applied in international companies, with the aim of providing theoretical and empirical evidence on how internationalisation can provide companies with effective and valuable knowledge from international markets, impacting on the improvement of CSR.

2. Theoretical Framework

2.1. About Internationalisation

Internationalisation, also referred to as international diversification, denotes the conduct of business activities by a firm across multiple national boundaries [21]. This process involves the expansion of a firm’s activities beyond national borders with the aim of producing and delivering goods and services to foreign markets [22]. In the Latin American context, firms typically begin their international trajectory through exports and progressively increase their level of commitment and control over resources to better respond to the conditions of foreign markets. This gradual approach is consistent with internalisation theory, which emphasises the incremental nature of international engagement [23].

The literature also highlights that internationalisation can serve as a significant channel for Foreign Direct Investment (FDI), enabling firms to establish a physical presence and operations in foreign markets [4]. Beyond market expansion, internationalisation allows firms to access new sources of knowledge, technologies, and strategic resources that are not readily available in their domestic environments. These capabilities contribute to improving competitive positioning and offer the potential for long-term profitability [24]. Consequently, internationalisation strategies have attracted substantial academic interest, particularly in the analysis of underperforming firms seeking to revitalise their business models through global engagement [25]. For further details, please refer to

Table 1. Theoretical perspectives.

Internationalisation Models
Upsala Model	International Networks
Companies learn by gaining experience in a foreign market, thus, over time, becoming both a source of high trust and commitment to the market in which they operate [26]. It is knowledge about the market, which is gradually developed through available resources [27]	Importance is given to both intra-organisational and inter-organisational networks and, in turn, to the end of a successful internationalisation process, because, in terms of networks, the internationalisation of a company will develop business relationships in networks in different countries [28].

.

On the one hand, there has been a notable increase in cross-border mergers and acquisitions, particularly by companies from developing economies, as part of their international expansion strategies [29]. These internationalisation activities drive comprehensive CSR improvement because as a company’s foreign revenues increase and it becomes more integrated into the international market, the influence of foreign shareholders also grows, and the performance-enhancing impact intensifies [30]. In addition, companies can respond to the diverse needs of different stakeholders in the different environments and markets in which they operate, allowing them to project an image of being responsible, genuinely transparent, and committed to environmental protection.

It is worth noting that there are dominant theoretical perspectives used in International Business, which help to understand, for the most part, internationalisation [26]. Some of them are mentioned and explained in the following table.

Theoretical models will benefit from a stricter embodiment of behavioural knowledge to discuss decision options in response to strategic problems, not necessarily strategic opportunities in specific situations [26].

On the other hand, the impact of this internationalisation process on firms’ CSR has been an important topic in corporate strategy research for several years [31]; however, there has been little agreement among researchers on the nature of the relationship between internationalisation and firm CSR [32]. Despite the importance of this issue, insufficient attention has been given to the impact of internationalisation on the CSR of multinational enterprises [20]. It is important to mention that this internationalisation process is represented as high risk, as they require knowledge acquisition, resource mobilisation, and effective talent management [33]

2.2. About Corporate Social Responsibility (CSR)

CSR involves the commitment of companies to society [34] and is manifested through a global index designed to assess the degree of sustainability of corporate activities [35], which leads, on the one hand, to maintaining the goal of being able to improve CSR and the effectiveness of implementing these practices, as companies need to tailor specific strategies for each stakeholder group and adjust them according to variations in their resource dependence under various circumstances [36]. On the other hand, to gain more empirical support as a useful predictor of the performance and also the viability of companies over a long-term period [6]. For this, it involves maintaining constant and prolonged interactions with stakeholders over time [21].

The growing importance of CSR practices aimed at sustainability is evident in various business contexts [37]. CSR is not only a relationship between companies and other entities that can be studied experimentally but also encompasses normative content regarding the responsibilities that can be derived from companies in a changing socio-economic context [38] and, in turn, can provide competitive advantages by enhancing investor relations, strengthening reputation, and adopting eco-friendly practices to reduce costs and risks [2] since CSR evolves from a public relations issue to a core strategic element, as the specific circumstances of the issue, country, industry and company play a critical role [39].

It also prioritises the well-being of all stakeholders in business operations, going beyond financial returns by considering concerns such as the environment, social equity, and diversity in the workplace [40]. Thus, internal CSR practices, such as employee care and well-being, are universal and can be valued in countries that are geographically distant, becoming a crucial factor for companies to be accepted and perceived as organisations committed to well-being [41].

In this sense, CSR practices can be implemented, as they lie in the importance of “reputational capital” [20], thus securing their position, as most companies need to improve their performance in terms of CSR [34]. Such is the case that, nowadays, companies are choosing to invest in advanced CSR practices to strengthen their public image [31]. To conclude, CSR must broaden its focus beyond legal and ethical obligations to encompass moral responsibilities as well. This implies that companies must comply not only with their general responsibilities but also with ethical and moral requirements [42].

Today, globalisation has increased interconnectedness and efficiency, but it has also brought with it unpredictable social risks. It is, therefore, crucial that companies strategically position CSR to counteract these impacts [43]. Furthermore, companies tend to limit the scope of their social activities to those that can generate direct economic benefits, which may exclude some socially important but less profitable actions [44]. This was seen as a corporate social and philanthropic approach, which allowed wealthy entrepreneurs to justify their profits, leading to the creation of new departments, such as public relations, to manage it to legitimise their presence in the face of possible negative market perception [45]. It should be emphasised that employee involvement in CSR can generate discrepancies of interest between companies, their employees, and institutions [46].

Finally, internationalisation can also serve as a catalyst for strengthening CSR practices within firms. Exposure to international markets often entails engagement with stricter regulatory environments, more demanding stakeholders, and heightened transparency requirements, all of which encourage companies to adopt more robust and strategic CSR initiatives. By operating across borders, firms are pushed to align with global standards on labour rights, environmental protection, and ethical governance, which can enhance their overall reputation and legitimacy. In the Peruvian context, listed companies are increasingly evaluated through frameworks such as the MERCO Responsibility and Corporate Governance ranking, as well as sustainability indices promoted by the Lima Stock Exchange (BVL), which consider environmental, social, and governance (ESG) dimensions. These instruments serve both as performance benchmarks and as incentives for listed firms to improve CSR-related disclosures and practices. Moreover, internationalisation fosters learning through cross-cultural exchange and benchmarking against international peers, enabling firms to integrate best practices in sustainability and social responsibility. These dynamics suggest that international expansion is not only a growth strategy but also a driver of improved CSR performance and long-term organisational resilience.

2.3. About Internationalisation and Corporate Social Responsibility (CSR)

Both CSR and internationalisation entail costs and potential benefits [47]. Over the past decades, global companies have made significant efforts to incorporate CSR as an integral part of their business operations [48]. Thus, leading to an increase in CSR in the internationalisation of companies [49].

Factors that influence firm performance can also affect the internationalisation process [50]. Statistical research showed that social, economic, and environmental factors positively affected internationalisation because most experts have linked it with its positive effects on society [51]. However, both have a great impact on a myriad of social problems and the well-being of most stakeholders [52]. Thus, it can be said that internationalisation and CSR are positively linked [51].

Nowadays, there is a wide debate regarding how internationalisation affects CSR, as this influence has been widely debated, and there is a great controversy in all the results found [20]. Existing research on the internationalisation of firms has addressed the impact on CSR to a limited extent [53]. Thus, internationalisation can generate high levels of uncertainty when adopting CSR practices and, in turn, will have the opportunity to strengthen their position and enhance their competitive advantage [54], attracting the attention of foreign stakeholders [55], which provides them with opportunities to leverage institutional linkages in their internationalisation process [56]. Currently, CSR practices are based on guidelines established by various regulatory initiatives, which, at both national and international levels, have been implemented in organisations with various features and characteristics [57].

2.4. Hypothesis Development

Understanding the interplay between internationalisation and CSR remains a relevant yet contested area in international business research. While international expansion offers firms access to broader markets and resources, it also introduces exposure to diverse institutional pressures and stakeholder expectations, which may influence CSR engagement. Building on theoretical and empirical insights, this study proposes the following hypotheses concerning three dimensions of internationalisation: foreign sales intensity, geographical diversification, and cultural diversification.

H1. 

Foreign sales have a positive impact on CSR.

Foreign sales are among the most visible indicators of a firm’s level of internationalisation, reflecting not only commercial expansion but also greater exposure to external markets and the expectations of international stakeholders. As firms extend their commercial reach beyond national borders, they not only pursue increased revenues but also face growing demands related to sustainability, transparency, and ethical standards [20]. In this context, international sales function as a key channel through which global CSR standards are integrated into corporate strategy [31].

Firms with a higher proportion of foreign revenue are more likely to engage with international actors who demand greater social and environmental accountability [30]. This dynamic aligns with the logic of the Uppsala model, which posits that firms progressively acquire knowledge about foreign markets and deepen their commitment to responsible practices as they consolidate their international presence [27]. Furthermore, from the perspective of international networks, internationalisation facilitates the development of strong and enduring relationships with strategic partners who place a high value on sustainability and corporate reputation [28].

Accordingly, the first hypothesis seeks to empirically assess whether the degree of international commercial exposure, measured by the percentage of foreign sales, influences the CSR commitment of Peruvian manufacturing firms—consistent with the central objective of this study.

H2. 

International geographical diversification has a positive impact on CSR.

Geographic diversification allows firms to operate across multiple countries and engage with a wide range of institutional, social, and regulatory environments. This contextual diversity increases exposure to heterogeneous stakeholder expectations and governance frameworks, which in turn compels firms to adapt their CSR strategies accordingly. In other words, firms must align their environmental and social commitments with local norms while maintaining consistency with their global identity [26,36].

Recent studies have highlighted that geographic dispersion not only facilitates access to new knowledge and resources but also enhances a firm’s ability to develop more robust CSR capabilities [24]. International presence contributes to competitive advantage by attracting foreign stakeholders committed to responsible business practices and by leveraging institutional partnerships that strengthen the internationalisation process [54,55,58].

To capture the extent of this dispersion, the regional entropy index has been proposed as an effective metric, widely used in empirical research to quantify the geographical spread of firms in international markets. This metric allows for a more precise assessment of how spatial diversification contributes to CSR outcomes.

Accordingly, the second hypothesis aims to empirically examine whether the geographic dispersion of Peruvian manufacturing firms, as measured by their regional entropy scores, is positively associated with their CSR performance—consistent with the overarching goal of this study.

H3. 

International cultural diversification has a positive impact on CSR.

Cultural diversification involves interaction with markets that differ in values, behaviours, and social norms, requiring firms to adopt more inclusive and adaptable CSR strategies. In this context, cultural diversity acts as a catalyst for the development of socially responsive practices that go beyond mere compliance and align with local ethical expectations [41]. Several studies have shown that internal CSR practices—such as employee well-being, workplace equity, and diversity—are increasingly valued in culturally diverse environments, serving as a bridge between corporate values and local legitimacy [21,40]. For Peruvian manufacturing firms, operating in culturally diverse contexts may encourage the adoption of more inclusive CSR frameworks that enhance reputation and mitigate institutional risk. Ultimately, cultural diversification not only influences how CSR is perceived but also how it is implemented, positioning it as a key factor in global sustainability strategies [1,2].

To test this hypothesis, this study draws on institutional and stakeholder perspectives on CSR, which argue that internationalised firms adopt socially responsible behaviours to align with institutional standards and maintain favourable relations with stakeholders. In the specific case of international firms from emerging economies, both formal and informal institutional frameworks—as well as national culture from both home and host countries—exert a positive influence on strategic decision-making [22]. As such, operating in culturally diverse environments generates additional pressure to adapt CSR practices to specific social expectations and conform to cultural norms that vary significantly across countries.

From a broader perspective, international cultural diversification has both strategic and operational implications for firm performance. Numerous studies agree that this type of diversification yields benefits such as access to global resources, external knowledge, and new competitive opportunities [17,18,19]. It also promotes organisational learning and adaptation to international standards, which can strengthen sustainability and CSR practices. However, it also presents challenges; for instance, firms must navigate unfamiliar cultures, institutions, and competitive dynamics, increasing the complexity of international management. Precisely for this reason, a strong and culturally sensitive CSR strategy can become a distinctive asset for overcoming such barriers.

Accordingly, this hypothesis seeks to determine whether cultural diversity, as a critical component of internationalisation, acts as a facilitating factor in the effective implementation of CSR in the Peruvian manufacturing sector, enabling firms not only to integrate more effectively into global markets but also to strengthen their social legitimacy and long-term sustainability.

3. Methodology

A quantitative approach was employed in this study, with a non-experimental, longitudinal design used to carry out correlational and causal analyses aimed at testing three hypotheses [20]. Firm-level data were collected and statistically analysed to identify changes in the variables over time. This allowed for an understanding of interrelationships within a specific context and the observation of phenomena in their natural setting without direct manipulation of variables. The longitudinal nature of the analysis enabled the identification of patterns in how internationalisation influenced corporate social responsibility (CSR) over an extended period, as well as the assessment of the sustainability of these practices over time.

Ordinary least squares (OLS) estimation was applied using panel data across three different models, all of which used internationalisation as the independent variable and included a common control variable—firm size, measured by total company revenues. The three dependent variables considered were (i) foreign market sales, (ii) international geographical diversification, and (iii) international cultural diversification. Data sources included Veritrade and the annual financial statements published by Superintendencia del Mercado de Valores of Peru (SMV) for the internationalisation variable and Merco’s annual reports for the CSR variable.

According to data from the Lima Stock Exchange (Bolsa de Valores de Lima, BVL), the target population included firms from the industrial, agricultural, and mining sectors. A simple random sampling method was applied, yielding a total of 65 companies: 31 in the industrial sector, 15 in agriculture, and 19 in mining. However, due to missing data on financial statements and CSR indicators for the 2019–2022 period, only 44 valid observations were retained. The final study sample consisted of 21 Peruvian manufacturing firms for the 2019–2022 period. Notably, artificial intelligence tools were employed—under statistical supervision and validation by the research team—to compute the final CEI and IER values.

Table 2. Technical details of the exhibition.

Data Collection Methodology	Simple Random Sampling
Country of parent company	Peru
Sectoral scope	Manufacturing sector Specific industrial, agricultural, and mining sub-sectors.
Target population	65 companies
Distribution by sector of activity	31 companies in the industrial sector, 15 in the agricultural sector, and 19 in the mining sector.
Period of analysis	2019, 2020, 2021 and 2022
Sources of information used	Internationalisation: Veritrade and SMV annual financial reports CSR: Merco Annual Reports

presents the sample profile used in the analysis.

3.1. Description of Variables

3.1.1. Independent Variable: Internationalisation

Percentage of Sales: To assess a company’s presence in foreign markets, it is standard practice to use a ratio that divides total foreign sales by total company sales [22]. This indicator reflects the proportion of revenues generated abroad and serves as a proxy for the firm’s degree of international market engagement.

International geographic diversification: This variable is measured by the number of countries and/or regions in which the company operates. To quantify the extent of market dispersion, a Regional Entropy Index (REI) was employed, following [22]. The REI captures both the number of regions in which the firm is active and the relative weight of each region in the company’s total international operations. The index is calculated using a specific entropy-based equation:

$$IER={\sum }_{i=1}^{n}Pi · Ln \left({\displaystyle \frac{1}{P}}\right)$$

(1)

where Pi represents the proportion of total international sales allocated to each continent, while Ln (1/Pi) reflects the weight assigned to each continent, calculated as the natural logarithm of the inverse of that continent’s sales share. This formulation allows the index to account for both the distribution and balance of sales across regions. To determine the number of continents considered in the calculation, this study follows the standard regional classification of countries used in international trade and economic reporting [20].

In this study, countries were grouped into two continental regions: Latin America and North America.

International cultural diversification: Building on the Regional Entropy Index (REI), a Cultural Entropy Index (CEI) was constructed to incorporate not only the geographical distribution of sales but also the cultural and institutional distinctiveness of each region. This index is grounded in Hofstede’s six cultural dimensions: power distance, individualism, masculinity (achievement and success orientation), uncertainty avoidance, long-term orientation, and indulgence [1].

The CEI was calculated by combining the percentage of foreign sales in each region (Pi) with the corresponding cultural distance score (PCi), as determined by the Hofstede model. The resulting index captures the degree of cultural diversity present in a firm’s international operations. The CEI was computed using the following formula:

$$IEC={\sum }_{i=1 }^n{\displaystyle \frac{Pi ·PCi }{\sum _{i=1}^{n}Pi · PCi}} · Ln \left({\displaystyle \frac{1}{\frac{Pi ·PCi}{\sum _{i=1}^{n}Pi ·PCi}}}\right)$$

(2)

3.1.2. Dependent Variable: Corporate Social Responsibility (CSR)

Social performance: There are different CSR policies and practices of the sample of companies analysed in this study, which are obtained from Merco’s annual reports, which provide a variety of data types for CSR analysis. This annual report assigns a score from 1 to 10. This variable plays an important role in establishing good CSR practices in different internationalised companies.

3.2. Control Variables

Size: A company’s size can influence both its capacity to compete in international markets and the way it implements environmental and social strategies. In this study, total revenue was used as a proxy for firm size, measured for each internationalised company.

Sector of Activity: All Peruvian manufacturing firms were assigned a value of 1, encompassing sub-sectors such as mining, agriculture, and industry, in accordance with established theoretical foundations [1,20,31].

3.3. Empirical Model

In relation to the three hypotheses proposed in this study, a static panel data analysis was conducted using three different models, each of which included firm size as a control variable. Model 1 incorporated the dimension percentage of sales in foreign markets; Model 2 included international geographical diversification; Model 3 considered international cultural diversification.

Unobserved heterogeneity was addressed by including either fixed or random effects in the models, as appropriate. The fixed effects estimator treated unobserved individual-specific effects as constant parameters to be estimated under the assumption that they were correlated with the explanatory variables. In contrast, the random effects estimator assumed that these unobserved effects were random, uncorrelated with the explanatory variables, and thus part of the composite error term [59].

To determine whether fixed or random effects were more suitable for each model, the Hausman test was applied. This test evaluates the null hypothesis that there is no systematic difference between the fixed and random effects estimators. If the null hypothesis is rejected, fixed effects are preferred; otherwise, random effects are deemed appropriate.

Following the application of the Hausman test to all three models, the results indicated that the random effects specification was the most suitable for the analysis.

Finally, regarding the modelling strategy, a single multivariate model including all independent variables simultaneously was deliberately not estimated. This methodological decision is grounded in two technical considerations. First, the relatively small sample size (n = 65) limits statistical power and increases the risk of overfitting in models with multiple predictors, potentially compromising the efficiency of the estimators. Second, moderate levels of collinearity were identified among certain explanatory variables—particularly between geographical diversification and cultural internationalisation—which could distort the estimations and hinder the correct interpretation of individual effects. For these reasons, a parsimonious approach was adopted by estimating separate models, allowing for the assessment of the marginal effect of each dimension of internationalisation on CSR under controlled and statistically more robust specifications given this study’s constraints.

4. Results

After entering these data into Stata 18, the descriptive and correlational statistical analysis between several variables related to social performance, percentage of sales in foreign markets, international geographic and cultural diversification, and total revenues can be observed in

Table 3. Descriptive statistics and correlations.

Variable/Dimension	Media	Standard Deviation	Social Performance	Percentage of Sales in Foreign Markets	International Geographic Diversification	International Cultural Diversification	Total Income
Social performance	6.71	1.99	1.0000
Percentage of sales in foreign markets	0.65	0.20	−0.2175	1.0000
International geographic diversification	0.25	0.12	0.3449	−0.8538	1.0000
International cultural diversification	0.34	0.02	−0.0176	0.4168	−0.3214	1.0000
Total income	3.79	1.38	−0.0029	0.2831	−0.3438	0.0671	1.0000

Note: Number of observations (N) = 84; Number of groups (companies) = 21.

. The means indicate average values, such as an average social performance of 6.71 on a Likert scale of 1 to 10, and standard deviations reflect variability, with that for social performance being 1.99. Correlations reveal the strength and direction of relationships between variables. For example, social performance has a weak negative correlation with the percentage of sales in foreign markets (−0.2175) and a moderate positive correlation with international geographic diversification (0.3449). The percentage of sales in foreign markets has a strong negative correlation with geographical diversification (−0.8538) and a moderate positive correlation with cultural diversification (0.4168). Finally, total revenues have weak and almost zero correlations with the other variables. This analysis helps to understand how these factors relate to each other and their impact on social and financial performance.

On the other hand,

Table 4. Regression results.

	Model 1	Model 2	Model3
Constants	0.000	0.000	0.008
Total Income	1.08 × 10−6	2.06 × 10−6	−2.88 × 10−7
Percentage of sales in foreign markets	−2605.417
International geographic diversification		6950.241
International cultural diversification			4749.371
Wald $X^2$	16.01	84.68	0.99
R2 within	0.0044	0.0045	0.0193
Hausman	0.4195	0.0886	0.1572
Number of observations	84	84	84
Number of groups (companies)	21	21	21
Significance prob > chi2	0.0003	0.0000	0.6084

refers to the results of the three regression models that analyse the impact of internationalisation dimensions on CSR. Model 1 examines the percentage of sales in foreign markets, showing a significant negative coefficient of −2605,417. Model 2 analyses geographical international diversification, showing a significant positive coefficient of 6950.241, and Model 3 focuses on cultural international diversification, yielding a positive coefficient of 4749.371, which is not statistically significant.

Also, the Wald chi-squared ($X^2$) values vary significantly between the models, with values of 16.01, 84.68, and 0.99 for Models 1, 2, and 3, respectively, indicating different levels of significance of the coefficients. The values of R² within are relatively low in all models (0.0044, 0.0045, and 0.0193), suggesting that the independent variables explain only a small part of the variability within each group (firm). The Hausman test suggests that random effects may be more appropriate in all models, with values of 0.4195, 0.0886, and 0.1572 for Models 1, 2, and 3, respectively, although it is true that the Hausman test has confirmed the relevance of estimation with random effects. In all models, the number of observations is 84, and the number of groups (firms) is 21, maintaining consistency in the sample size.

These results allow us to compare the specific effects of each type of diversification, showing how different factors (total revenues, percentage of sales in foreign markets, international geographic and cultural diversification) affect the dependent variable in each regression model.

Table 4 presents the results of the regression using random effects estimators across the three models. The calculated Variance Inflation Factor (VIF) was 1.63, which indicates the absence of multicollinearity, as the value is well below the commonly accepted threshold of 5 [60]. This confirms that the independent variables used in the analysis are not highly correlated.

To assess the validity of the three hypotheses, the modified Wald test for groupwise heteroskedasticity was conducted using Stata. The results of this test revealed the presence of heteroskedasticity across all three models, thereby justifying the application of corrective econometric techniques.

In response, two estimation methods were considered: the use of robust standard errors and the application of generalised least squares (GLS). However, the robust standard error correction did not yield satisfactory results for any of the hypotheses. Therefore, GLS was ultimately employed as the more appropriate method to address heteroskedasticity. This approach proved effective in correcting for heteroskedasticity in all three models (H1, H2, and H3), where the general equation was applied consistently to evaluate the effect of the three independent variables:

$$Y={\beta }_0+{\beta }_1{X}_1+{\beta }_2{X}_2+{\beta }_3{X}_3+ϵ$$

(3)

where,

$Y$ = is social performance (CSR).

${\beta }_0$ = is the constant (intercept).

${\beta }_{1,}{\beta }_{2}y{\beta }_3$ are the coefficients of the independent variables.

$X_1$ = is the percentage of sales in foreign markets.

$X_2$ = is international geographic diversification.

$X_3$ = is international cultural diversification.

$ϵ$ = is the error term.

After performing the steps regarding the validation of the hypotheses, the Wald equation was used. $X^2$ (Chi-square) was used:

$$X^2={\left(\widehat{\beta }-{\beta }_0\right)}^T\left(V^{-1}\right)(\widehat{\beta }-{\beta }_0)$$

(4)

where,

$\widehat{\beta }=$ is the vector of estimated coefficients.

${\beta }_0=$ is the vector of hypothetical values of the coefficients under the null hypothesis (usually ${\beta }_0=0$).

$V$ = is the variance-covariance matrix of the coefficient estimators.

The results indicated that a higher proportion of foreign sales negatively impacts the CSR of Peruvian manufacturing firms ($Wald \chi ²=16.01$), suggesting that a higher foreign market orientation may be associated with a lower attention to CSR (−2605.417). This could also be because these companies are more focused on competing in international markets and, therefore, prioritise aspects such as operational efficiency and cost reduction, possibly to the detriment of their CSR initiatives.

In addition, international geographic diversification shows a positive and significant effect (e.g., the need to comply with various social and environmental regulations and expectations in different countries). $Wald \chi ²=84.68$), which could be related to the need to comply with various social and environmental regulations and expectations in different countries, as companies with operations in multiple regions may be more exposed to international CSR standards and are therefore incentivised to adopt more responsible practices to remain compliant and preserve their global reputation.

Finally, international cultural diversification did not have a high impact (6950.241) on CSR, indicating that, in the context of Peruvian manufacturing firms, this factor is not a determining factor. Although international cultural diversification has a positive coefficient (β = 4749.371), its effect is not statistically significant (Wald χ² = 0.99), suggesting that cultural heterogeneity across markets may not be a decisive factor in shaping CSR practices in the Peruvian context. It is likely that internal strategic, regulatory, or market-specific factors exert greater influence on CSR behavior.

5. Discussion

The first dimension analysed is the percentage of sales abroad, where the results indicate that a high percentage of sales in foreign markets is significantly associated with the CSR performance of Peruvian manufacturing companies, as shown by a coefficient of −2605.417 and a p-value of 0.000. These findings are consistent with the foundational premises of institutional theory [3,22], which argue that internationalisation entails a transformation in the institutional environment to which firms are subject. As companies expand their commercial activities beyond national borders, they become embedded in foreign institutional logics that exert normative, coercive, and mimetic pressures. These include international regulatory frameworks, environmental standards, and stakeholder expectations related to ethical behaviour and transparency. This finding supports H1, which posits that foreign sales are not only a reflection of commercial expansion but also a key channel through which global CSR standards are integrated into corporate strategy [20,31].

Internationalisation, measured by foreign sales, also aligns with the Uppsala model, which states that firms progressively acquire knowledge of foreign markets and deepen their commitment to responsible business practices as they consolidate their international presence [27].

In this sense, international sales expose firms to international actors who demand increased social and environmental accountability, such as foreign investors or regulatory bodies [30].

In this context, internationalisation—measured through the percentage of foreign sales—becomes a conduit through which external legitimacy is gained or maintained. When firms operate in highly regulated or socially demanding foreign markets, they are compelled to institutionalise CSR practices as part of their market entry and survival strategies. This process is particularly relevant when foreign revenues represent a significant share of the firm’s total income, as companies become increasingly reliant on the demands and standards of those external markets.

Moreover, the stakeholder theory provides a complementary explanation. The presence of foreign shareholders—especially those listed on global stock exchanges—implies additional scrutiny, as global investors often impose stricter CSR reporting and ESG standards. These shareholders assess corporate performance not solely in financial terms but also through the lens of ethical conduct, environmental responsibility, and social impact [30]. Consequently, companies with higher foreign participation may be more inclined to adopt robust CSR strategies to meet these broader accountability demands.

From the perspective of international networks, internationalisation also facilitates the creation of strong and lasting relationships with strategic partners who highly value sustainability and corporate reputation [28].

However, while these theoretical perspectives support the observed association, it is important to emphasise that the relationship found does not imply causality. Other unobserved or omitted factors—such as the strategic orientation of the management team, international CSR certifications, or engagement in voluntary CSR initiatives—may also influence both foreign market orientation and CSR performance. Additionally, the theoretical possibility of reverse causality must be acknowledged: firms with pre-existing strong CSR commitments may be more capable of entering or thriving in foreign markets that value such practices. Future research would benefit from exploring this dynamic further through causal inference techniques or qualitative comparative analysis.

Beyond theoretical implications, practical factors also demand attention. Policies for product and service adaptation to local markets, the nature of entry strategies (e.g., export vs. joint venture), and strategic alliances with foreign partners are all likely to moderate or mediate the relationship between internationalisation and CSR. Although not addressed in the current model, they represent promising variables for subsequent research.

An important empirical limitation concerns the availability and accuracy of the annual financial and sustainability reports of Peruvian firms. CSR indicators are often inconsistently reported across firms, and the lack of mandatory disclosure for certain indicators may obscure the full scope of CSR engagement, potentially attenuating the strength of the relationships examined.

The second dimension examined is international geographical diversification. The results indicate that this variable is also significantly associated with CSR performance, with a coefficient of 6950.241 and a p-value of 0.000. This finding supports the theoretical proposition that geographical dispersion across multiple institutional environments enhances a firm’s exposure to varied stakeholder demands and social expectations, which can catalyse more sophisticated CSR practices.

Geographic diversification allows firms to operate across multiple countries and engage with a wide range of institutional, social, and regulatory environments. This contextual diversity increases exposure to heterogeneous stakeholder expectations and governance frameworks, which in turn compels firms to adapt their CSR strategies accordingly [26,36]. In other words, firms must align their environmental and social commitments with local norms while maintaining consistency with their global identity.

From a resource-based view (RBV), firms that engage in geographical diversification gain access to valuable external resources such as local knowledge, regulatory experience, and social capital. This exposure enhances their internal capabilities, notably enabling the development of adaptive CSR systems tailored to specific contextual needs [24]. This supports the idea that CSR practices are not only compliance mechanisms but also strategic capabilities that contribute to firm differentiation and sustained competitive advantage.

In addition, international presence contributes to competitive advantage by attracting foreign stakeholders committed to responsible business practices and by leveraging institutional partnerships that strengthen the internationalisation process [54,55,58]. These partnerships and networks become sources of legitimacy and innovation in CSR implementation, especially in emerging markets where regulatory gaps may exist.

In parallel, network theory reinforces this dynamic by highlighting the role of cross-border business networks in facilitating access to CSR-relevant information, actors, and institutions [26]. By engaging with NGOs, community organisations, and international agencies in host countries, firms strengthen their ability to respond to local sustainability demands while improving their overall CSR performance. In the case of Peruvian manufacturing firms, this mechanism may be particularly relevant given the growing importance of international certifications and responsible supply chains in global trade.

To capture the extent of this dispersion, the regional entropy index has been proposed as an effective metric in empirical research. It allows for a more nuanced assessment of how spatial diversification contributes to CSR outcomes, particularly in heterogeneous institutional contexts. This is especially relevant for countries such as Peru, where firms navigating internationalisation must reconcile domestic institutional challenges with the requirements of global sustainability standards.

Nevertheless, the empirical model does not capture the full range of factors that may shape this relationship. Strategic alliances, political risk, and bilateral trade agreements are likely to condition how firms implement CSR across different geographies. Furthermore, the operational challenges of CSR standardisation across countries with disparate institutional conditions require further theoretical exploration through the lens of institutional distance and transnational governance theory.

The scarcity of previous empirical studies focusing specifically on internationalised Peruvian firms also limits the external validity of the results. Therefore, a broader comparative framework involving other emerging economies may be necessary to contextualise the Peruvian experience within global CSR trends and to validate whether international geographical diversification systematically leads to superior CSR performance across different regions and sectors.

The third and final dimension assessed was international cultural diversification, which, in contrast to the previous two, did not show a statistically significant relationship with CSR (coefficient = 4749.371; prob > chi² = 0.6084). This result runs contrary to Hypothesis 3, which anticipated a positive association based on the argument that firms operating in culturally diverse environments are more likely to adopt inclusive and adaptive CSR policies.

The theoretical expectation had been grounded in the Uppsala model of internationalisation [27], which postulates that firms incrementally build knowledge and capabilities to manage uncertainty and cultural distance in foreign markets. Similarly, strong international networks are highlighted as key enablers of capability development, as they offer relational channels through which trust and learning are cultivated [28]. In line with this, recent studies argue that cultural diversification involves interaction with markets that differ in values, behaviours, and social norms, requiring firms to adopt more inclusive and adaptable CSR strategies [41]. In this context, cultural diversity can act as a catalyst for the development of socially responsive practices that go beyond mere compliance and align with local ethical expectations.

However, the absence of a significant relationship in this study may suggest that Peruvian manufacturing firms have not yet reached a stage of international maturity that allows them to leverage cultural diversification as a CSR driver. It is possible that the current levels of cultural diversification are insufficient to generate meaningful shifts in internal CSR practices such as employee well-being, workplace equity, and diversity—dimensions that have been found to be increasingly valued in culturally diverse environments [21,40].

Several explanations are plausible. Firms may lack the intercultural management systems, training programs, or HR policies necessary to integrate cultural sensitivity into their CSR frameworks. Managing multicultural teams, aligning global and local values, and adapting communication and reporting mechanisms across cultures requires internal capabilities that may still be underdeveloped. Moreover, the weak effect may reflect the absence of institutional incentives—formal or informal—in both home and host countries. For international firms from emerging economies, such as the Peruvian case [61], national culture and institutional voids significantly shape strategic CSR choices [22]. In the absence of strong stakeholder pressure or regulatory demand, cultural responsiveness in CSR may not emerge as a strategic priority.

Therefore, while the hypothesis is not empirically supported, the finding opens an avenue for further research on the mediating role of internal capabilities and the moderating effects of institutional support. It also suggests that cultural diversification may not have a direct linear effect on CSR but rather an indirect or conditional one—dependent on managerial orientation, firm-level learning processes, and external pressures. In future studies, it would be valuable to explore how culturally sensitive CSR strategies can become a distinctive asset in overcoming the complexity of international management, particularly when firms navigate unfamiliar institutions and norms [1,2]. From a strategic perspective, cultural diversification has the potential to improve CSR and sustainability outcomes—yet this potential remains untapped in the Peruvian context, likely because of capacity constraints and underdeveloped learning systems.

In sum, the three dimensions of internationalisation examined reflect distinct theoretical mechanisms with varying degrees of empirical support. The analysis confirms that foreign sales and geographical diversification are positively associated with CSR in Peruvian manufacturing firms, consistent with institutional, stakeholder, and resource-based theories. In contrast, cultural diversification appears to lack the expected influence, likely due to capacity constraints and contextual limitations. Future research should explore these theoretical avenues in more depth, particularly by applying mixed-methods designs and incorporating firm-level case studies that allow for a richer interpretation of cross-cultural CSR strategies.

5.1. About Methodological Limitations and Causality Concerns

Although this study employs panel data regression models to explore the relationship between internationalisation and CSR in Peruvian manufacturing firms, it is important to acknowledge key methodological limitations that affect the interpretation and generalisation of the results.

First and foremost, the results presented are based on statistical associations and do not permit definitive conclusions regarding causality. This study does not fully address the problem of endogeneity, which may arise from omitted variables, measurement error, or reverse causality. For example, it is plausible that firms with more advanced CSR practices are better positioned to expand internationally, rather than internationalisation being the driver of improved CSR performance. Likewise, both internationalisation and CSR may be jointly influenced by a third, unobserved factor—such as firm size, access to foreign capital, or managerial commitment to sustainability—which was not accounted for in the present model. The absence of instrumental variables or robustness checks further limits the ability to establish the direction of the causal relationship. Consequently, the findings of this study should be interpreted as correlational rather than causal.

A particularly important concern is the potential bidirectionality in the relationship between internationalisation and CSR. While the analysis assumes a unidirectional effect from internationalisation to CSR, it is equally likely that firms proactively strengthen CSR commitments to meet global investor expectations or regulatory standards as a prerequisite for international market entry. For instance, access to international capital markets, stock listings, or engagement with multinational clients may drive CSR improvements. This possibility of simultaneous causality was not directly tested in this study, thus limiting the robustness of the causal interpretations. Future research should apply more advanced causal inference methods, such as instrumental variable approaches or dynamic panel models, to better disentangle the directionality of this relationship.

Another limitation pertains to the explanatory power and model fit of the panel regressions. Although foreign sales and geographic diversification yielded statistically significant coefficients, the R² within values across all models were relatively low (ranging from 0.0044 to 0.0193), indicating that only a small portion of the variance in CSR performance is explained by the predictors within firms. While such outcomes are not uncommon in social science research using panel data, this implies that unobserved firm-level characteristics may play a more substantial role. Moreover, the control variable ‘total income’—used to proxy firm size—did not have a statistically significant effect in any model, which limits its contribution to explaining CSR outcomes. These findings underscore the need to incorporate additional firm-level and industry-level variables, such as managerial orientation, ownership structure, or institutional pressures, in future models to improve explanatory power.

An additional constraint relates to the origin, coverage, and transparency of these used CSR data. This study relied on publicly available rankings from Merco’s annual corporate reputation reports, which are widely used in Latin America. However, inclusion in the analysis was limited to those firms for which consistent data were available across the full study period, potentially introducing sample bias. Furthermore, although Merco’s CSR index is reputable, the methodological details behind its construction, as well as its applicability across different firm sizes and sectors, were not fully accessible for external validation. Relying exclusively on secondary sources may also reduce the granularity and comparability of CSR scores across firms. Future studies could address this issue by triangulating Merco scores with firm-level disclosures, surveys, or qualitative data to enhance coverage, reduce bias, and improve the validity of CSR indicators in the context of emerging markets.

Taken together, these limitations suggest that future research should aim to apply more rigorous econometric techniques, including instrumental variables, structural equation modelling, or longitudinal case studies. Such approaches would allow for a more accurate and comprehensive understanding of whether and how internationalisation influences CSR—or vice versa—in emerging economic contexts such as Peru.

5.2. Theoretical Contributions

This study enriches the theoretical framework on the intersection between internationalisation and CSR by advancing the understanding of how specific dimensions of internationalisation—namely foreign sales, geographic diversification, and cultural diversification—differentially influence CSR performance in emerging economies. Unlike prior studies that have often examined these dimensions in aggregate or within developed contexts, this research disaggregates their impact and focuses on the Peruvian manufacturing sector, thus adding a regional and sector-specific perspective to the literature.

It further integrates perspectives from the Uppsala model and the network theory to explain the mechanisms through which international expansion facilitates access to institutional pressures, best practices, and legitimacy factors that drive CSR engagement. By doing so, it expands the conceptualisation of internationalisation not only as a commercial strategy but also as a catalyst for responsible management practices.

5.3. Empirical Contributions

Empirically, this study is one of the few to provide panel data-based evidence from Peru —an underrepresented context in international business and CSR research— by using stock exchange reports and secondary databases such as Merco. The findings show significant associations between foreign market sales and CSR performance, as well as between geographic diversification and access to sustainability-related resources and practices.

Moreover, the research reveals that cultural diversification does not necessarily translate into better CSR outcomes, likely because of capability gaps and the costs of managing cross-cultural teams—an insight that invites further analysis in similar emerging-market contexts. This nuanced evidence contrasts with assumptions in global studies and invites scholars to consider contextual specificities more seriously.

The methodological contribution lies in its use of panel regression techniques and the justification of proxies, such as total income for firm size, which address limitations in local data availability while maintaining analytical robustness. These insights are timely and relevant, especially considering the growing global focus on ESG metrics in capital markets and the pressure on emerging-market firms to align with international sustainability standards.

6. Conclusions and Recommendations

Regarding the first specific objective, it can be concluded that the percentage of sales in foreign markets has a significant impact on the social performance of Peruvian manufacturing companies, indicating a positive relationship between internationalisation and sustainable, responsible business practices. In this regard, the greater the percentage of foreign sales, the higher the likelihood that these companies participate in the stock market, which in turn enhances legal, economic, and commercial security for investment and compliance with CSR standards, making companies more ethical and sustainable. The results discussed in the analysis section further support this argument. Nevertheless, other variables may influence CSR, such as market entry strategies, product adaptation to local needs, and strategic alliances for the development of new products and ventures in target markets.

Observing the second specific objective, international geographic diversification also has a significant impact on the CSR performance of Peruvian manufacturing firms. This suggests that internationalisation enables access to new knowledge and resources, including advanced sustainability practices adopted locally, and fosters the implementation of more comprehensive CSR initiatives. However, factors such as strategic alliances and the economic and political context of host countries may also influence the relationship between geographic diversification and CSR outcomes.

In relation to the third specific objective, international cultural diversification did not demonstrate a statistically significant impact on CSR performance. This implies that operating in countries with different cultural profiles does not necessarily improve CSR practices. Moreover, managing cultural diversity can be complex and costly, and Peruvian firms may still lack the capabilities needed to effectively address intercultural challenges in their international operations.

Among the limitations of this research is the limited availability of reports and public data on CSR performance for Peruvian manufacturing firms listed on the stock exchange, which may have affected the analysis of the impact of foreign sales on CSR. Likewise, the scarcity of specialised research on internationalised Peruvian firms limits the generalisability of the findings.

Cultural unfamiliarity and internal resistance to diversity further constrain generalisability. These limitations highlight the need for more comprehensive research efforts and the development of richer databases to improve understanding of how internationalisation affects CSR performance in the Peruvian context.

From a methodological standpoint, although linear correlation and panel regression analysis were applied to examine the effect of internationalisation on CSR, it is acknowledged that more robust methodologies could improve measurement precision and result generalisation. While the applied techniques are suitable for the available dataset, the findings may not be representative of all firms or sectors, given the heterogeneity of the Peruvian business landscape.

To maximise the positive impact of internationalisation on CSR performance, Peruvian manufacturing firms should integrate CSR into their global strategies. This implies not only complying with foreign regulations and expectations but also adopting international sustainability and CSR standards across all stages of the value chain. Furthermore, active participation in global initiatives and partnerships could enhance reputation and competitiveness in international markets.

Due to the limitations among CSR-related data, especially through stock market reports, it is essential for companies to improve transparency by publishing financial reports that include CSR indicators. They should also implement sustainability training programmes and raise awareness of CSR within their organisations. Strengthening CSR management through tailored strategies that reflect local realities, coupled with monitoring and evaluation systems, will enhance long-term impact. The Superintendencia del Mercado de Valores should also reinforce its role by requiring all listed companies to disclose CSR-related information.

Given the low reliability and availability of CSR and financial data among Peruvian manufacturers, it is recommended that internationalising firms develop internal monitoring and reporting systems for their foreign operations. This will enable more accurate data collection on foreign sales and relevant CSR indicators, even for firms not listed on a stock exchange. Better reporting practices will build stakeholder trust and enhance corporate reputation, facilitating the adoption of more ethical and sustainable practices.

One of the main limitations of this research is the small sample size, constrained by the availability of consistent CSR data during the analysis period. The reliance on secondary sources such as Merco reports may also limit the validity and generalisability of the results. Additionally, the absence of robust instruments and methodological controls restricts the ability to draw causal inferences; hence, the findings should be interpreted as statistical associations rather than direct effects. Future studies should broaden the sample through primary data collection, incorporate firm-level variables such as ownership structure, management sustainability orientation, and innovation capacity, and apply more rigorous econometric methods. The use of instrumental variable techniques, structural equation modelling, or longitudinal designs would help address endogeneity and enhance understanding of the CSR–internationalisation nexus, particularly in emerging economies such as Peru.

Therefore, it is recommended that Peruvian manufacturing firms actively collaborate with academia and research institutions to share data and experiences. This would bridge existing knowledge gaps, deepen the understanding of sector-specific dynamics, and strengthen the empirical basis for decision-making in internationalisation strategies.

Regarding cultural diversification, it is advisable for Peruvian firms to invest in intercultural training programmes aimed at enhancing sensitivity, understanding, and the capacity to manage multicultural teams. Human resource policies that foster inclusion and respect for diversity could also help firms overcome cultural barriers, improve team integration, and strengthen their capacity to operate effectively in diverse international markets.

This study provides valuable contributions to the theoretical understanding of internationalisation and management strategies, which are highly relevant in a globalised economy. It demonstrates that internationalisation can enhance financial and CSR performance through access to new markets, compliance with international norms, and the development of more ethical, sustainable products and processes.

Lastly, this research offers empirical evidence on the relationship between internationalisation and ESG performance in emerging markets, emphasising the need for ongoing academic inquiry and practical application. While this study identifies key associations, especially with foreign sales and geographic diversification, it also calls for deeper theoretical integration to clarify which dimensions of internationalisation are most relevant for distinct sectors. The choice of total income as a proxy for firm size was based on data consistency; however, future studies should consider additional variables. Improved explanation and justification of the variables used to enhance the robustness of the conclusions and provide a basis for future research aiming to uncover causal mechanisms and design more sustainable internationalisation strategies.