IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v13y2004i6p705-728.html
   My bibliography  Save this article

An empirical investigation of immigrant effects: the experience of firms operating in the emerging markets

Author

Listed:
  • Chung, Henry Fuan-Lin

Abstract

The immigrant effect consists of the 'employer' and the 'employee' effect. This study focuses on the 'employee' effect. Existing studies on the immigrant effect have identified its contributions to international trade and international marketing management but have not explained under what circumstances this effect can be used to achieve a firm's objectives when operating in a foreign market. This study explores the profile of the firms which have used this effect to assist their operations in three foreign host markets (China, Hong Kong and Taiwan). Based on the outcomes of a multivariate logistic regression analysis, this study has generated a number of useful findings. Firm size is not suggested as a factor for the selection of immigrant effects. Firms are more likely to adopt an immigrant effect when their products are new to the markets. FDI mode users tend to be more likely to use the immigrant effect. Usage of immigrant effects is also found to be associated with firms from a smaller domestic economy. The immigrant effect is often used to break cultural barriers between home and host markets, but is more helpful when the marketing infrastructure in the home and host markets is similar. The choice of immigrant effect is suggested to have no influence on firms' performance in the host markets.

Suggested Citation

  • Chung, Henry Fuan-Lin, 2004. "An empirical investigation of immigrant effects: the experience of firms operating in the emerging markets," International Business Review, Elsevier, vol. 13(6), pages 705-728, December.
  • Handle: RePEc:eee:iburev:v:13:y:2004:i:6:p:705-728
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593104000939
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Björkman, Ingmar & Kock, Sören, 1995. "Social relationships and business networks: The case of Western companies in China," International Business Review, Elsevier, vol. 4(4), pages 519-535.
    2. Edwards, Ronald W. & Buckley, Peter J., 1998. "Choice of location and mode: the case of Australian investors in the UK," International Business Review, Elsevier, vol. 7(5), pages 503-520, October.
    3. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
    4. Masaaki Kotabe & Glenn S Omura, 1989. "Sourcing Strategies of European and Japanese Multinationals: A Comparison," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(1), pages 113-130, March.
    5. John H. Dunning, 1977. "Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach," Palgrave Macmillan Books, in: Bertil Ohlin & Per-Ove Hesselborn & Per Magnus Wijkman (ed.), The International Allocation of Economic Activity, chapter 12, pages 395-418, Palgrave Macmillan.
    6. repec:bla:scotjp:v:49:y:2002:i:5:p:507-25 is not listed on IDEAS
    7. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    8. Peter G P Walters, 1986. "International Marketing Policy: A Discussion of the Standardization Construct and its Relevance for Corporate Policy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(2), pages 55-69, June.
    9. Gould, David M, 1994. "Immigrant Links to the Home Country: Empirical Implications for U.S. Bilateral Trade Flows," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 302-316, May.
    10. W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 29-53, March.
    11. Vern Terpstra & Chwo-Ming Yu, 1988. "Determinants of Foreign Investment of U.S. Advertising Agencies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 33-46, March.
    12. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    13. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    14. Shoham, Aviv & Albaum, Gerald, 1994. "The effects of transfer of marketing methods on export performance: an empirical examination," International Business Review, Elsevier, vol. 3(3), pages 219-241, September.
    15. Don Wagner & Keith Head & John Ries, 2002. "Immigration and the Trade of Provinces," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 507-525, November.
    16. Welch, Denice & Welch, Lawrence & Wilkinson, Ian & Young, Louise, 1996. "Network development in international project marketing and the impact of external facilitation," International Business Review, Elsevier, vol. 5(6), pages 579-602, December.
    17. Chen, Haiyang & Hu, Michael Y., 2002. "An analysis of determinants of entry mode and its impact on performance," International Business Review, Elsevier, vol. 11(2), pages 193-210, April.
    18. Theodosiou, Marios & Leonidou, Leonidas C., 2003. "Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research," International Business Review, Elsevier, vol. 12(2), pages 141-171, April.
    19. Min, Pyong Gap, 1990. "Korean Immigrants in Los Angeles," Institute for Social Science Research, Working Paper Series qt2w76n5vs, Institute for Social Science Research, UCLA.
    20. Sanjeev Agarwal & Sridhar N Ramaswami, 1992. "Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internationalization Factors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 1-27, March.
    21. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rosalie Tung & Henry Chung, 2010. "Diaspora and trade facilitation: The case of ethnic Chinese in Australia," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 371-392, September.
    2. Nurhazani Mohd Shariff & Azlan Zainol Abidin, 2017. "Developing International Migrant Labors Pattern: The Case of Tourism and Hospitality Industry," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 423-427.
    3. Daniela Bolzani & Cristina Boari, 2018. "Evaluations of export feasibility by immigrant and non-immigrant entrepreneurs in new technology-based firms," Journal of International Entrepreneurship, Springer, vol. 16(2), pages 176-209, June.
    4. Chung, Henry F.L. & Tung, Rosalie L., 2013. "Immigrant social networks and foreign entry: Australia and New Zealand firms in the European Union and Greater China," International Business Review, Elsevier, vol. 22(1), pages 18-31.
    5. Chung, Henry F.L. & Rose, Ellen & Huang, Pei-how, 2012. "Linking international adaptation strategy, immigrant effect, and performance: The case of home–host and cross-market scenario," International Business Review, Elsevier, vol. 21(1), pages 40-58.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chung, Henry F.L. & Tung, Rosalie L., 2013. "Immigrant social networks and foreign entry: Australia and New Zealand firms in the European Union and Greater China," International Business Review, Elsevier, vol. 22(1), pages 18-31.
    2. Chung, Henry F.L. & Rose, Ellen & Huang, Pei-how, 2012. "Linking international adaptation strategy, immigrant effect, and performance: The case of home–host and cross-market scenario," International Business Review, Elsevier, vol. 21(1), pages 40-58.
    3. Rosalie Tung & Henry Chung, 2010. "Diaspora and trade facilitation: The case of ethnic Chinese in Australia," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 371-392, September.
    4. Drogendijk, H.J., 2001. "Expansion patterns of Dutch firms in Central and Eastern Europe : Learning to internationalize," Other publications TiSEM 18571cef-0dd0-46ff-82aa-3, Tilburg University, School of Economics and Management.
    5. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2017. "Anti-Migration as a Threat to Internationalization?," Ratio Working Papers 302, The Ratio Institute.
    6. repec:wsr:wpaper:y:2012:i:097 is not listed on IDEAS
    7. Müller, Benjamin & Ragoussis, Alexandros, 2016. "Minorities and trade: what do we know, and how can policymakers take it into account?," IDOS Discussion Papers 11/2016, German Institute of Development and Sustainability (IDOS).
    8. Tadas Sarapovas & Maik Huettinger & Domas Rickus, 2016. "The Impact Of Market-Related Factors On The Choice Of Foreign Market Entry Mode By Service Firms," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 7(1).
    9. Kusum Mundra, 2014. "Immigration and Trade Creation for the United States: Role of Immigrant Occupation," The International Trade Journal, Taylor & Francis Journals, vol. 28(4), pages 311-343, October.
    10. Ana Ramón Rodríguez, 2001. "International Modal choice determinants in the Spanish Hotel Sector," ERES eres2001_261, European Real Estate Society (ERES).
    11. Hongxin Zhao & Chin-Chun Hsu, 2007. "Social ties and foreign market entry: An empirical inquiry," Management International Review, Springer, vol. 47(6), pages 815-844, December.
    12. Slangen, Arjen H.L. & van Tulder, Rob J.M., 2009. "Cultural distance, political risk, or governance quality? Towards a more accurate conceptualization and measurement of external uncertainty in foreign entry mode research," International Business Review, Elsevier, vol. 18(3), pages 276-291, June.
    13. Bell, J.H.J., 1996. "Joint or Single Venturing? : An Electric Approach to Foreign Entry Mode Choice," Other publications TiSEM 06f84735-3cf5-432f-8bc8-c, Tilburg University, School of Economics and Management.
    14. Jell-Ojobor, Maria & Alon, Ilan & Windsperger, Josef, 2022. "The choice of master international franchising – A modified transaction cost model," International Business Review, Elsevier, vol. 31(2).
    15. Anthony Briant & Pierre-Philippe Combes & Miren Lafourcade, 2014. "Product Complexity, Quality of Institutions and the Protrade Effect of Immigrants," The World Economy, Wiley Blackwell, vol. 37(1), pages 63-85, January.
    16. Yuheng Lin & Dooruj Rambaccussing & Yu Zhu, 2024. "The impact of international students in the UK on the cultural goods trade," French Stata Users' Group Meetings 2024 29, Stata Users Group.
    17. Gabriel J. Felbermayr & Benjamin Jung & Farid Toubal, 2010. "Ethnic Networks, Information, and International Trade: Revisiting the Evidence," Annals of Economics and Statistics, GENES, issue 97-98, pages 41-70.
    18. D'Ambrosio, Anna & Montresor, Sandro, 2017. "Migration and Trade Ows: New Evidence from Spanish Regions," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201724, University of Turin.
    19. Giovanni Peri & Francisco Requena-Silvente, 2010. "The trade creation effect of immigrants: evidence from the remarkable case of Spain," Canadian Journal of Economics, Canadian Economics Association, vol. 43(4), pages 1433-1459, November.
    20. Larimo, Jorma & Arslan, Ahmad, 2013. "Determinants of foreign direct investment ownership mode choice: Evidence from Nordic investments in Central and Eastern Europe," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(2), pages 232-263.
    21. Giulia Bettin & Alessia Lo Turco, 2012. "A Cross-Country View on South-North Migration and Trade: Dissecting the Channels," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(4), pages 4-29, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:13:y:2004:i:6:p:705-728. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.