Co-ethnic immigrant communities, cross-national distance, and foreign location choice of family firms from emerging economies

Zhongfeng Su, Jiatao Li, Wenping Ye, Yaya Shi and Bangzhu Zhu

Journal of World Business, 2025, vol. 60, issue 4

Abstract: Can co-ethnic immigrant communities (CICs) influence the foreign location choice of family firms from emerging economies (FFEs) under different cross-national distance conditions? To answer this question, this study explores how the effect of CIC size on the foreign location choice of FFEs varies with four key types of cross-national distances. By using the data of 885 investments of Chinese family firms in 161 countries, this study finds that CIC size has a positive effect on the location choice of such firms. Moreover, the effect is strengthened by administrative and knowledge distances, weakened by global connectedness distance, and does not vary with relational distance. This study adds insights into the antecedents of foreign location choice and clarifies the role of CICs in helping FFEs overcome the challenges of different types of cross-national distances. By contextualizing FFEs, this study can benefit family firm internationalization research.

Keywords: co-ethnic immigrant communities; cross-national distance; emerging economy; family firms; foreign location choice (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.jwb.2025.101641

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