The contribution of diaspora networks to the internationalisation of SMEs: a case study in the healthcare industry

Abstract

This study explores the contribution of diaspora networks – individuals who maintain strong ties to both their countries of origin and residence – to the internationalisation of small and medium-sized enterprises (SMEs). Internationalisation between developed and developing countries presents institutional complexities for both outward (exporting) and inward (importing) activities, which can be particularly challenging for resource-constrained SMEs. While prior research has largely examined inward and outward internationalisation in isolation, the potential synergistic role of diaspora networks across both directions remains underexplored. Addressing this gap, we draw on network theory and conduct a qualitative case study of a UK-based healthcare SME using interviews and documentary analysis. Our findings show that diaspora networks play a crucial role in accelerating internationalisation by bridging institutional voids, transferring cultural and market-specific knowledge, enhancing credibility, expanding network access, and enabling the development of culturally adapted products and services. This study contributes to network theory by illustrating how diaspora networks' dual embeddedness creates unique advantages over traditional networks in supporting healthcare SMEs' inward and outward internationalisation and has important managerial and policy implications.