SME Export Propensity in Emerging and Developing Economies: An Integrative Review of Firm Capabilities, Business Networks, and Institutional Constraints

Abstract

Abstract

Small and medium-sized enterprises (SMEs) play a vital role in employment, innovation, and economic development, yet their participation in international markets remains uneven across emerging and developing economies. Existing research has examined SME export propensity through distinct theoretical lenses, particularly the Resource-Based View, Network Theory, and Institutional Theory. However, these streams are frequently treated in isolation, limiting understanding of how internal, relational, and contextual factors jointly shape firms’ decisions to participate in export markets. This article provides an integrative review of the literature on SME export propensity in emerging and developing economies, synthesizing theoretical and empirical research around three complementary dimensions: firm capabilities, business networks, and trade-related institutional constraints. The review adopts a concept-driven, iterative approach based on thematic searches, review-led source discovery, citation tracing, and targeted retrieval of studies relevant to the review’s core constructs. The review corpus comprises 47 theoretical, review, empirical, and institutional sources selected for their relevance to SME export propensity, firm capabilities, business networks, institutional constraints, and emerging and developing economy contexts. The review indicates that firm-level capabilities, including managerial experience, workforce development, and digital capability, are generally associated with greater export propensity, while business networks can facilitate access to knowledge, legitimacy, contacts, and complementary resources. At the same time, customs procedures, regulatory burdens, administrative requirements, and institutional uncertainty can increase the costs and difficulties associated with exporting. The synthesis further suggests that these dimensions do not operate independently: firm capabilities and networks may help SMEs compensate for institutional weaknesses or enhance their ability to benefit from more favorable institutional conditions. Building on these insights, the article develops an integrated framework of SME export propensity, identifies gaps concerning interaction effects, construct measurement, and contextual variation, and proposes a future research agenda. The review also discusses implications for SME internationalization research in Morocco and comparable emerging and developing economies.

Keywords: SME export propensity; SME internationalization; firm capabilities; business networks; institutional constraints; emerging and developing economies