Abstract:
Purpose – Drawing upon the institutional theory, the present study investigated whether or not small and
medium-sized enterprises (SMEs) in East Africa benefit from the Belt and Road Initiative (BRI), and how the
latter influences the internationalization of the former.
Design/methodology/approach – An in-depth interview was conducted by using 26 SME managers/
owners who are engaged in international activities in the “Belt and Road” countries. The sample was chosen
from four East African countries across three industries. The theoretical framework emerged from the
grounded theory analysis of the primary data.
Findings – The authors found that the BRI as a formal institutional force generates both direct and indirect
influences on SMEs’ internationalization. Three key driving forces, namely partnerships, specialized services
and innovativeness underpin the internationalization of SMEs. Additionally, sectoral analysis of the
similarities and differences in responses reveals no remarkable differences in the drivers and impact of the BRI
on SMEs in all the three industries investigated.
Research limitations/implications – The internationalization process of East African SMEs could be
augmented through formal institutions like the BRI, and the internationalization of SMEs along the “Belt and
Road” countries mimic an integrative approach. The theoretical framework demonstrates significant potential
for further benefits that SMEs may obtain through the BRI by taking advantage of certain BRI opportunities
and adopting crucial strategies to internationalize rapidly.
Originality/value – This is the first study to employ a qualitative approach to study the influence of the BRI
at the firm-level. Specifically, the paper covered the hub of BRI countries in East Africa. Hence, the study makes
substantial theoretical and policy contributions to the literature
