National culture, networks and ethnic entrepreneurship: A comparison of the Indian and Chinese immigrants in the US |
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Authors: | Masud Chand Majid Ghorbani |
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Institution: | aWichita State University, Barton School of Business, Department of Management, 1845 Fairmount, Wichita, KS 67260, USA;bSchool of Business, Renmin University of China, Mingde Business Building, No.59 Zhongguancun Street, Haidian Dist., Beijing 100872, P. R. China |
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Abstract: | This paper uses a combination of national cultural frameworks and social capital theory to explain the formation and management of entrepreneurial ventures among immigrant communities. The varying rates of venture formation and performance among different ethnic groups points to the role that the different dimensions of culture play in how immigrants use their social networks to start such firms. We use the specific example of the Indian and Chinese communities in the US to demonstrate this effect and explain how businesses created by members of these communities could have potentially different ways of starting and operating that can be directly traced to the differences in cultural orientation of their owners. What emerges can be summarized as: (a) different immigrant communities have different ways of accumulating and using social capital in starting and managing their ethnic ventures; (b) these dissimilarities manifest themselves in variations in the motives for forming these ventures, human resource practices and termination rates; and (c) that these variations can partly be explained by the differences in their respective national cultures. |
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Keywords: | Ethnic entrepreneurship Immigrant networks National culture Diaspora Comparing Chinese and Indian immigrants Formation & Management of Immigrant ventures |
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