Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries

This study reviews the literature on the challenges and opportunities of the global value chain (GVC) participation of small and medium-sized enterprises (SMEs) in developing countries. A three-step approach to the literature review is used for synthesizing the relevant research works. In the end, we retain that SMEs are drivers of economic growth and despite the many challenges they face, the opportunity for developing country SMEs to benefit from their GVC linkages does exist, notably the high-quality information that they would otherwise not have access to. However there are necessary preconditions, resources and strategies that need to be put together to ensure the successful integration and growth (upgrading) of these SMEs within GVCs. The findings and proposed model contribute to enrich existing GVC research and offer a theoretical guide for possible practical measures to be adopted by SMEs and governments in developing countries.

Automated summary

This study reviews the challenges and opportunities of small and medium-sized enterprises (SMEs) in developing countries participating in the global value chain (GVC). The findings suggest that despite the challenges, SMEs in developing countries have the potential to benefit from their GVC linkages, particularly in gaining high-quality information. However, certain preconditions, resources, and strategies are necessary to ensure successful integration and growth within GVCs. The proposed model and findings contribute to the existing GVC research and offer theoretical guidance for practical measures that SMEs and governments in developing countries can adopt.