Global industrial restructuring in the current era is characterised by an increase in cross-border strategic alliances, mergers and acquisitions (M&As) and other types of business networking. This presents new international opportunities for small and medium-sized enterprises (SMEs). Cross-border business networking allows SMEs to expand their markets and distribution channels, to realise economies of scale and scope in products and processes, and to profit from the sale and licensing of technology-based assets. Governments can help SMEs realise the benefits of global restructuring by maintaining a flexible business environment and openness in foreign investment and trade, fostering inter-firm networking, and upgrading SME capabilities to participate in international networks and foreign markets. This paper assesses the drivers of global industrial restructuring and the impacts on small firms. It presents a detailed sectoral analysis of small-firm participation in cross-border ...