Transnational Networking and Business Success: Ethnic entrepreneurs in Canada

Dafna Kariv, Teresa V. Menzies, Gabrielle A. Brenner () and Louis Jacques Filion
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Gabrielle A. Brenner: IEA, HEC Montréal, http://www.hec.ca/iea/

No 06-18, Cahiers de recherche from HEC Montréal, Institut d'économie appliquée

Abstract: It is agreed that transnational networking plays an important role in the effectiveness of ethnic entrepreneurial firms. Yet, distinctions between the different types of transnational networking and their effects on business effectiveness have received scant attention in the literature, probably because ethnicity has been considered the main actor in the networkingeffectiveness relationship. This paper argues that one of the reasons business effectiveness differs across ethnic entrepreneurial firms is that ethnic entrepreneurs engage in dissimilar types of transnational networking. Analyses of the data generated by 720 ethnic entrepreneurs in Canada, revealed that ethnicity, human capital and push-pull factors play a central role in the engagement of different types of transitional networking; and the different types of transnational networking affect the business turnover (sales) and the business survival (age). Push-pull factors were found to play a marginal role in the business effectiveness. These results highlight the competitive market immigrants and members of ethnic minority groups encounter in the hosting economy and stress the value of transnational networking.

Keywords: Transnational Entrepreneurship; Networks; Immigrant Entrepreneurs; Ethnic Entrepreneur; Push and Pull Factors; Business Success; Business Outcomes (search for similar items in EconPapers)
Pages: 38 pages
Date: 2006-12
New Economics Papers: this item is included in nep-cse, nep-ent, nep-hrm and nep-mig
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