The upcoming rise of SMEs in cross-border public procurement: is it a matter of networking capabilities?

Abstract

AbstractThe participation of SMEs in public procurement is a recurring theme in recent academic literature. However, little attention has been paid to its influence in cross-border procurement. To participate in this market, SMEs must overcome barriers that make the task difficult and minimise their chances of winning contracts. Within this context, dynamic capabilities in general, and networking ones in particular, are crucial to overcome barriers and boost performance. This article presents an abductive qualitative research study of multiple cases using CAQDAS to analyse which networking capabilities prepare SMEs for cross-border public procurement processes. The results show not only how these capabilities have enabled SMEs to perform well in this environment but also which barriers have helped them to overcome each phase of the procurement process. The article also provides recommendations for both SMEs that decide to enter this market and the administrations that wish to support them.