A Structural Equations Model for Assessing the Economic Performance of High-Tech Ethnic Entrepreneurs

Mediha Sahin, Alina Todiras, Peter Nijkamp, Bart Neuts and Christiaan Behrens
Additional contact information
Mediha Sahin: VU University Amsterdam
Alina Todiras: VU University Amsterdam
Bart Neuts: KU Leuven, Belgium
Christiaan Behrens: VU University Amsterdam

No 13-161/VIII, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: In this paper we develop and test a conceptual model of the key relationships concerning the business performance and success of ethnic entrepreneurs. To that end, an explanatory model'GALAXY' is presented which serves as a framework for mapping out the impact that various background factors are assumed to have on the economic performance of ethnic entrepreneurs active in the high-tech sector in four big cities in the Netherlands. The model describes the behavioural and other factors which are grouped into four components: Motivational Factors; Socio-economic Contextual Factors; Policy Factors; and Business Environment. After a first examination of the relationships using ordered logit modelling, the resulting structural equation model is tested by using the AMOS software. The information base of our research comes from a set of extensive survey questionnaires administered to migrant and native entrepreneurs in Amsterdam, Rotterdam, Utrecht and The Hague. With the help of these data, a series of hypotheses on the relationships between the above-mentioned four components and individual firm performance is tested, with particular reference to the success conditions of ethnic entrepreneurs in the high-tech sector. Our structural equation model shows that three of the eight hypothesized paths were statistically significant. Of the three significant paths, only the paths between social networks and pull factors had the direction predicted, while current business location and Business Performance showed a reverse relationship.

Keywords: migrant entrepreneurship; GALAXY model; ethnic diversity; economic performance (search for similar items in EconPapers)
JEL-codes: L26 R11 (search for similar items in EconPapers)
Date: 2013-10-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://papers.tinbergen.nl/13161.pdf (application/pdf)

Related works:
Chapter: A Structural Equations Model for Assessing the Economic Performance of High-tech Ethnic Entrepreneurs (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20130161

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().