The effect of migrants' resource endowments on business performance

Susanne Schlepphorst, Rosemarie Kay and Sebastian Nielen

No 03/19, Working Papers from Institut für Mittelstandsforschung (IfM) Bonn

Abstract: This paper questions the stereotypical image of migrant-led companies as being less successful than native-led businesses. While facing similar framework conditions, migrant-led businesses are supposed to differ from native-led businesses in terms of their social capital endowment. In its function, social capital helps to mobilise further resources in form of human and financial resources. Each form of capital can have an effect on business performance, both directly as well as indirectly through its influence on the business' innovativeness. That is, social, human and financial resources can enhance the development and exploitation of business ideas. To test these relationships we apply a mediation model. Using data of migrant- and non-migrant-led businesses, we indeed find slight differences in their social capital resource endowments. These differences, however, do not result in performance differences between migrant- and native-led businesses.

Keywords: migrant entrepreneurship; social capital; performance; mediation model (search for similar items in EconPapers)
JEL-codes: J15 L25 L26 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ent, nep-mig and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifmwps:0319

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