Social capital or ethnic enclave location? A multilevel explanation of immigrant business growth

Zolin, Roxanne, Chang, Artemis, Yang, Xiaohua, & Ho, Elly Yi-Hsuan (2016) Social capital or ethnic enclave location? A multilevel explanation of immigrant business growth. Thunderbird International Business Review, 58(5), pp. 453-463.

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Abstract

The rapid increase in migration into host countries and the growth of immigrant-owned business enterprises has revitalized research on ethnic business. Does micro (individual)-level social capital, or meso (group)-level location within the ethnic enclave lead to immigrant business growth? Or do you need both? We analyze quantitative data collected from 110 Chinese restaurants in Australia, a major host country. At the micro level we find that coethnic (same ethnic group) networks are critical to the growth of an immigrant entrepreneur's business, particularly in the early years. But non-coethnic (different ethnic group) social capital only has a positive impact on business growth for immigrant businesses outside the ethnic enclave. Our findings are relevant, not only to host-country policymakers, but also for future immigrant business owners and ethnic community leaders trying to better understand how to promote healthy communities and sustainable economic growth.

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ID Code: 88014
Item Type: Journal Article
Refereed: Yes
Keywords: Immigrant Entrepreneurship, Ethnic Enclave, Ethnic Entrepreneurship, Social Capital, Chinese Management
DOI: 10.1002/tie.21754
ISSN: 1096-4762
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Entrepreneurship (150304)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 2015 John Wiley & Sons Inc
Deposited On: 05 Oct 2015 23:52
Last Modified: 09 Sep 2016 04:29

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