Institutional actors, policy and internationalisation of emerging market SMEs: lessons from AGOA and the Ghanaian Textile Industry

Abstract

This paper focuses on the roles of institutional actors and their policies in promoting the internationalisation of Ghanaian textile firms. A longitudinal research method was employed with the aim of gaining an understanding of the development of the interrelationships between contexts, processes, actors and their activities and resources over a period of 13 years in order for the SME to internationalise. The findings show complex interrelationships, different roles and a greater importance of institutional actors than has been found in previous research. Furthermore, the findings show how the context of SMEs from emerging markets in Africa affect their internationalisation processes and success and how both home and foreign institutions and policies can contribute to the processes through a business network approach. Theoretically, this study contributes to theories of firm internationalisation from emerging markets. Practically, it provides implications for managers and policy makers about how to achieve and support the internationalisation of African SMEs.