The embedding of transnational entrepreneurs in diaspora networks:Leveraging the assets of foreignness

In this paper we examine how foreign actors capitalize on their ethnic identity to gain skills and capabilities that enable them to operate in a new and strange environment. We explore the mechanisms by which Bulgarian entrepreneurs in London use their ethnic identity to develop competitive advantage and business contacts. We find that the entrepreneurs studied gain access to a diaspora network, which enables them to develop essential business capabilities and integrate knowledge from both home and host country environments. The diaspora community possesses a collective asset (transactive memory) that allows its members to remove competition from the interfirm level to the network level (i.e., diaspora networks vs. networks of native businesspeople). Additionally, the cultural identity and networks to which community members have access provide bridging capabilities that allow diaspora businesspeople to make links to host country business partners and thus embed themselves in the host country environment. Thus, this paper adds to the growing body of work showing how foreignness can serve as an asset in addition to its better-known role as a liability

The effects of ownership concentration and institutional distance on the foreign entry ownership strategy of Turkish MNEs

We investigate how ownership concentration and institutional distance both directly influence the equity-based ownership strategies of a sample of Turkish MNEs, and also how institutional differences moderate the link between ownership concentration and the equity-based ownership strategies of these firms. The findings suggest that neither ownership concentration nor institutional distance significantly affects the level of equity ownership. Although institutional distance variables have no direct effects on equity ownership, they tend to moderate the relationships between the ownership concentration and foreign equity ownership strategy of Turkish MNEs. In particular, we provide evidence that the regulative and normative dimensions of institutional distance affect the strength of the relationships between equity ownership strategy of MNEs and ownership concentration more so than the cognitive dimension of institutional distance

Transnational entrepreneurship : opportunity identification and venture creation

The present case study focuses on entrepreneurs who have migrated from one developed economy (Sweden or Finland) to another developed economy (Hong Kong Special Administrative Region (HKSAR)). In contrast to the dominating understanding, we find that the transnational entrepreneurial incentives were opportunity driven rather than necessity based. The opportunity types identified varied, but indicate the importance of service opportunities, a type often left out of studies and classifications. A prevalent characteristic of transnational entrepreneurship is opportunity recognition based on introducing processes or products to the country of residence, familiar from the country of origin or based on use of the entrepreneurs’ contacts in the home country. This study showed, however, that although this was the case for two entrepreneurs, some identified opportunities for acting in the opposite direction, or did both import and export. Notably, there was also a fourth category, offering business-facilitating services, bridging differing cultural contexts in relationship-middlemen positions. For these entrepreneurs, there was thus no obvious “domestic market” from the start as assumed in traditional internationalization theories. Furthermore, although their businesses started on a limited scale between two countries, they quickly grew and entered other country markets. These transnational businesses thus represent forms of born globals not included in the high-tech business models often associated with such firms. Our findings finally lend support to arguments that a business-favorable institutional environment facilitates and encourages entrepreneurship.