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Transnational entrepreneurship: opportunity identification and venture creation

Heléne Lundberg () and Anneli Rehnfors
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Heléne Lundberg: Mid Sweden University
Anneli Rehnfors: Mid Sweden University

Journal of International Entrepreneurship, 2018, vol. 16, issue 2, 150-175

Abstract: Abstract 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.

Keywords: Transnational entrepreneurship; Opportunity type; Institutional environment; Immigrants; Service; Relationship-middlemen position; Born global (search for similar items in EconPapers)
Date: 2018
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