Strategies to overcome the liability of outsidership in geopolitical projects: the case of German firms in the Chinese belt and road initiative in Africa

Purpose Building on the revised Uppsala model’s perspective on firm internationalization, which has been extended by network theory, we explore how firms overcome their liability of outsidership in the multi-stakeholder networks of geopolitical projects. We apply our theoretical assumptions in the context of the Belt and Road Initiative (BRI) in Sub-Saharan Africa (SSA). Design/methodology/approach We conducted a qualitative analysis of 20 semi-structured interviews with managers of German firms along the value chain of infrastructure projects in SSA. Findings Our findings show that Chinese firms are regarded not only as competitors but also as customers, particularly after network entry. We propose a four-tiered approach of entry nodes and processes showing how non-Chinese firms build enduring network relationships to overcome their liability of outsidership, thereby benefiting from BRI-related networks in SSA. Originality/value This is a pioneering study applying the revised Uppsala model to business networks in the multi-stakeholder and multi-country setting of geopolitical projects. Contrary to public opinion, we posit that in these geopolitical projects, it is not only firms from the sponsor government that benefit. Based on our “outside-in” perspective, we make clear that outsider firms may find business opportunities in geopolitical projects if they successfully build network relationships with insiders.