Addressing participation drivers and challenges for small municipalities in European cross-border cooperation

Purpose This article investigates the dynamics of participation of small municipalities in European cross-border cooperation programs, addressing a critical gap in understanding why some small entities can position themselves in transnational networks despite structural constrains. Combining resource-based view and multi-level governance (MLG) perspectives in an integrated framework, the study explains how variations in internal capacities and MLG conditions influence their ability to access and benefit from international funded projects. Design/methodology/approach A mixed-methods case study focuses on the Interreg Alcotra program (Italy–France, 2014–2023). Quantitative analysis of 382 beneficiaries identifies participation patterns, while semi-structured interviews with local administrators explore enabling factors and governance strategies. Findings Small municipalities represent only 13% of beneficiaries despite constituting 89% of local authorities in eligible areas. They predominantly assume partner roles (84%), with limited centrality in the network and low frequency of repeated participation. Success factors include strategic positioning, strong political leadership, relational embeddedness, minimum viable capacity (e.g. linguistic skills, preliminary project ideas, knowledge transfer routines) and alignment with EU objectives. Municipalities institutionalizing cross-border cooperation as ordinary practice demonstrate cumulative learning effects. Originality/value This research theoretically advances MLG by integrating organizational capability perspectives and demonstrates how micro-municipalities can leverage already-in-set context-specific knowledge and agility as competitive advantages. It provides practical managerial and policy insights for strengthening participation and promoting more inclusive territorial governance.