IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v50y2015i4p804-814.html
   My bibliography  Save this article

Internationalization of immigrant-owned SMEs: The role of language

Author

Listed:
  • Sui, Sui
  • Morgan, Horatio M.
  • Baum, Matthias

Abstract

Immigrant entrepreneurs have become increasingly important to economic development, and there is substantial debate regarding their enhanced potential to expand their activities across national borders. However, research regarding how immigrant-owned small- and medium-sized enterprises (SMEs) engage in internationalization and how entrepreneurs’ native languages might influence such processes remains in its infancy. Drawing on a sample of 3077 Canadian SMEs, we evaluated the impact of immigrant ownership and the moderating role of native language on companies’ decisions to export to global markets and to the English-speaking regional market. Immigrant ownership generally fostered a global orientation, particularly for French and Allophone owners.

Suggested Citation

  • Sui, Sui & Morgan, Horatio M. & Baum, Matthias, 2015. "Internationalization of immigrant-owned SMEs: The role of language," Journal of World Business, Elsevier, vol. 50(4), pages 804-814.
  • Handle: RePEc:eee:worbus:v:50:y:2015:i:4:p:804-814
    DOI: 10.1016/j.jwb.2015.04.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S109095161500022X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jwb.2015.04.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Melitz, Jacques & Toubal, Farid, 2014. "Native language, spoken language, translation and trade," Journal of International Economics, Elsevier, vol. 93(2), pages 351-363.
    2. Sui, Sui & Yu, Zhihao & Baum, Matthias, 2012. "Prevalence and Longitudinal Trends of Early Internationalisation Patterns among Canadian SMEs," MPRA Paper 41177, University Library of Munich, Germany.
    3. Israel Drori & Benson Honig & Mike Wright, 2009. "Transnational Entrepreneurship: An Emergent Field of Study," Entrepreneurship Theory and Practice, , vol. 33(5), pages 1001-1022, September.
    4. Nicolas Sauter, 2012. "Talking trade: language barriers in intra-Canadian commerce," Empirical Economics, Springer, vol. 42(1), pages 301-323, February.
    5. Siri Terjesen & Amanda Elam, 2009. "Transnational Entrepreneurs‘ Venture Internationalization Strategies: A Practice Theory Approach," Entrepreneurship Theory and Practice, , vol. 33(5), pages 1093-1120, September.
    6. Andrei Kuznetsov & Olga Kuznetsova, 2014. "Building professional discourse in emerging markets: Language, context and the challenge of sensemaking," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(5), pages 583-599, June.
    7. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    8. Sourafel Girma & Zhihao Yu, 2002. "The link between immigration and trade: Evidence from the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 115-130, March.
    9. Alan M. Rugman & Alain Verbeke, 2005. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 8, pages 104-119, Edward Elgar Publishing.
    10. Griffith, David A., 2002. "The role of communication competencies in international business relationship development," Journal of World Business, Elsevier, vol. 37(4), pages 256-265, January.
    11. Robert Salomon & J. Myles Shaver, 2005. "Export and domestic sales: their interrelationship and determinants," Strategic Management Journal, Wiley Blackwell, vol. 26(9), pages 855-871, September.
    12. Xiaohua Lin & Shaw Tao, 2012. "Transnational entrepreneurs: Characteristics, drivers, and success factors," Journal of International Entrepreneurship, Springer, vol. 10(1), pages 50-69, March.
    13. Rubén Fernández-Ortiz & Guadalupe Fuentes Lombardo, 2009. "Influence of the capacities of top management on the internationalization of SMEs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(2), pages 131-154, March.
    14. Igor Filatotchev & Jenifer Piesse, 2009. "R&D, internationalization and growth of newly listed firms: European evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1260-1276, October.
    15. Wenhong Chen & Justin Tan, 2009. "Understanding Transnational Entrepreneurship Through a Network Lens: Theoretical and Methodological Considerations," Entrepreneurship Theory and Practice, , vol. 33(5), pages 1079-1091, September.
    16. Neville, François & Orser, Barbara & Riding, Allan & Jung, Owen, 2014. "Do young firms owned by recent immigrants outperform other young firms?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 55-71.
    17. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    18. Someshwar Rao & Jianmin Tang & Weimin Wang, 2010. "ICT Capital and MFP Growth: Evidence from Canadian and U.S. Industries," Transnational Corporations Review, Ottawa United Learning Academy, vol. 2(3), pages 59-71, September.
    19. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    20. Baum, Matthias & Schwens, Christian & Kabst, Ruediger, 2015. "A latent class analysis of small firms’ internationalization patterns," Journal of World Business, Elsevier, vol. 50(4), pages 754-768.
    21. Jeffrey Frankel & Andrew Rose, 2002. "An Estimate of the Effect of Common Currencies on Trade and Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 437-466.
    22. Mary Yoko Brannen & Rebecca Piekkari & Susanne Tietze, 2014. "The multifaceted role of language in international business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(5), pages 495-507, June.
    23. Nicole E Coviello, 2006. "The network dynamics of international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(5), pages 713-731, September.
    24. Melitz, Jacques, 2008. "Language and foreign trade," European Economic Review, Elsevier, vol. 52(4), pages 667-699, May.
    25. Goldberg, Lawrence G. & Saunders, Anthony, 1981. "The determinants of foreign banking activity in the United States," Journal of Banking & Finance, Elsevier, vol. 5(1), pages 17-32, March.
    26. Tarique, Ibraiz & Schuler, Randall S., 2010. "Global talent management: Literature review, integrative framework, and suggestions for further research," Journal of World Business, Elsevier, vol. 45(2), pages 122-133, April.
    27. Kate Gillespie & Liesl Riddle & Edward Sayre & David Sturges, 1999. "Diaspora Interest in Homeland Investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(3), pages 623-634, September.
    28. William K. Hutchinson, 2002. "Does Ease of Communication Increase Trade? Commonality of Language and Bilateral Trade," Vanderbilt University Department of Economics Working Papers 0217, Vanderbilt University Department of Economics.
    29. Jennifer M. Sequeira & Jon C. Carr & Abdul A. Rasheed, 2009. "Transnational Entrepreneurship: Determinants of Firm Type and Owner Attributions of Success," Entrepreneurship Theory and Practice, , vol. 33(5), pages 1023-1044, September.
    30. Pamela J Hinds & Tsedal B Neeley & Catherine Durnell Cramton, 2014. "Language as a lightning rod: Power contests, emotion regulation, and subgroup dynamics in global teams," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(5), pages 536-561, June.
    31. Helene Tenzer & Markus Pudelko & Anne-Wil Harzing, 2014. "The impact of language barriers on trust formation in multinational teams," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(5), pages 508-535, June.
    32. Sui Sui & Zhihao Yu, 2012. "The Pattern of Foreign Market Entry of Canadian Exporters," Canadian Public Policy, University of Toronto Press, vol. 38(3), pages 341-359, September.
    33. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Wei, Yingqi, 2015. "The role of highly skilled migrants in the process of inter-firm knowledge transfer across borders," Journal of World Business, Elsevier, vol. 50(1), pages 56-68.
    34. Sui Sui & Matthias Baum, 2014. "Internationalization strategy, firm resources and the survival of SMEs in the export market," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(7), pages 821-841, September.
    35. Wagner, Don & Head, Keith & Ries, John, 2002. "Immigration and the Trade of Provinces," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 507-525, December.
    36. Tiia Vissak & Xiaotian Zhang, 2014. "Chinese immigrant entrepreneurs’ involvement in internationalization and innovation: Three Canadian cases," Journal of International Entrepreneurship, Springer, vol. 12(2), pages 183-201, June.
    37. Harzing, Anne-Wil & Pudelko, Markus, 2013. "Language competencies, policies and practices in multinational corporations: A comprehensive review and comparison of Anglophone, Asian, Continental European and Nordic MNCs," Journal of World Business, Elsevier, vol. 48(1), pages 87-97.
    38. 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.
    39. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
    40. Marschan-Piekkari, Rebecca & Welch, Denice & Welch, Lawrence, 1999. "In the shadow: the impact of language on structure, power and communication in the multinational," International Business Review, Elsevier, vol. 8(4), pages 421-440, August.
    41. Luis E Lopez & Sumit K Kundu & Luciano Ciravegna, 2009. "Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1228-1238, September.
    42. Kuivalainen, Olli & Saarenketo, Sami & Puumalainen, Kaisu, 2012. "Start-up patterns of internationalization: A framework and its application in the context of knowledge-intensive SMEs," European Management Journal, Elsevier, vol. 30(4), pages 372-385.
    43. Grosse, Robert & Goldberg, Lawrence G., 1991. "Foreign bank activity in the United States: An analysis by country of origin," Journal of Banking & Finance, Elsevier, vol. 15(6), pages 1093-1112, December.
    44. William K. Hutchinson, 2002. "Does Ease of Communication Increase Trade? Commonality of Language and Bilateral Trade," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 544-556, November.
    45. 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.
    46. Janssens, Maddy & Lambert, José & Steyaert, Chris, 2004. "Developing language strategies for international companies: the contribution of translation studies," Journal of World Business, Elsevier, vol. 39(4), pages 414-430, November.
    47. Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(4), pages 605-635, December.
    48. Jean-Luc Cerdin & Manel Abdeljalil Diné & Chris Brewster, 2014. "Qualified immigrants’ success: Exploring the motivation to migrate and to integrate," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(2), pages 151-168, February.
    49. Carr, Stuart C. & Inkson, Kerr & Thorn, Kaye, 2005. "From global careers to talent flow: Reinterpreting 'brain drain'," Journal of World Business, Elsevier, vol. 40(4), pages 386-398, November.
    50. Coviello, Nicole & Munro, Hugh, 1997. "Network relationships and the internationalisation process of small software firms," International Business Review, Elsevier, vol. 6(4), pages 361-386, August.
    51. Ram Mudambi & Shaker A Zahra, 2007. "The survival of international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 333-352, March.
    52. Ilhan-Nas, Tulay & Sahin, Kader & Cilingir, Zuhal, 2011. "International ethnic entrepreneurship: Antecedents, outcomes and environmental context," International Business Review, Elsevier, vol. 20(6), pages 614-626.
    53. Hutchinson, William K, 2002. "Does Ease of Communication Increase Trade? Commonality of Language and Bilateral Trade," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 544-556, December.
    54. Chetty, Sylvie & Blankenburg Holm, Desiree, 2000. "Internationalisation of small to medium-sized manufacturing firms: a network approach," International Business Review, Elsevier, vol. 9(1), pages 77-93, February.
    55. Francois Vaillancourt & Dominique Lemay & Luc Vaillancourt, 2007. "Laggards No More: The Changed Socioeconomic Status of Francophones in Quebec," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 103, August.
    56. 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. Ratan J. S. Dheer, 2018. "Entrepreneurship by immigrants: a review of existing literature and directions for future research," International Entrepreneurship and Management Journal, Springer, vol. 14(3), pages 555-614, September.
    2. Morais, Flávio & Ferreira, João J., 2020. "SME internationalisation process: Key issues and contributions, existing gaps and the future research agenda," European Management Journal, Elsevier, vol. 38(1), pages 62-77.
    3. Sufyan, Muhammad & Degbey, William Y. & Glavee-Geo, Richard & Zoogah, Baniyelme D., 2023. "Transnational digital entrepreneurship and enterprise effectiveness: A micro-foundational perspective," Journal of Business Research, Elsevier, vol. 160(C).
    4. Lin, Xiaohua & Yang, Xiyan, 2017. "From human capital externality to entrepreneurial aspiration: Revisiting the migration-trade linkage," Journal of World Business, Elsevier, vol. 52(3), pages 360-371.
    5. Daniela Bolzani & Riccardo Fini & Gian Luca Marzocchi, 2021. "The influence of entrepreneurs’ immigrant status and time on the perceived likelihood of exporting," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 593-623, June.
    6. Helene Tenzer & Siri Terjesen & Anne-Wil Harzing, 2017. "Language in International Business: A Review and Agenda for Future Research," Management International Review, Springer, vol. 57(6), pages 815-854, December.
    7. Carlos Poblete & Vesna Mandakovic, 2021. "Innovative outcomes from migrant entrepreneurship: a matter of whether you think you can, or think you can’t," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 571-592, June.
    8. James, Hui & Hsieh, Chialing & Wu, Chen Y., 2017. "Board structure of immigrant-founder firms," Journal of Multinational Financial Management, Elsevier, vol. 42, pages 11-23.
    9. Maribel Guerrero & Vesna Mandakovic & Mauricio Apablaza & Veronica Arriagada, 2021. "Are migrants in/from emerging economies more entrepreneurial than natives?," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 527-548, June.
    10. Horatio M. Morgan & Sui Sui & Shavin Malhotra, 2021. "No place like home: The effect of exporting to the country of origin on the financial performance of immigrant-owned SMEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(3), pages 504-524, April.
    11. Morgan, Horatio M. & Sui, Sui & Baum, Matthias, 2018. "Are SMEs with immigrant owners exceptional exporters?," Journal of Business Venturing, Elsevier, vol. 33(3), pages 241-260.
    12. Kunlin Xu & Judy Drennan & Shane Mathews, 2019. "Immigrant entrepreneurs and their cross-cultural capabilities: A study of Chinese immigrant entrepreneurs in Australia," Journal of International Entrepreneurship, Springer, vol. 17(4), pages 520-557, December.
    13. Abd Hamid, Hamizah & Pidduck, Robert J. & Newman, Alexander & Ayob, Abu Hanifah & Sidek, Farhana, 2023. "Intercultural resource arbitrageurs: A review and extension of the literature on transnational entrepreneurs," Journal of Business Research, Elsevier, vol. 165(C).
    14. McHenry, Joyce E.H. & Welch, Denice E., 2018. "Entrepreneurs and internationalization: A study of Western immigrants in an emerging market," International Business Review, Elsevier, vol. 27(1), pages 93-101.
    15. Laura Helen Middermann, 2020. "Do Immigrant Entrepreneurs Have Natural Cognitive Advantages for International Entrepreneurial Activity?," Sustainability, MDPI, vol. 12(7), pages 1-13, April.
    16. Singh, Rashmeet & Chandrashekar, Deepak & Subrahmanya Mungila Hillemane, Bala & Sukumar, Arun & Jafari-Sadeghi, Vahid, 2022. "Network cooperation and economic performance of SMEs: Direct and mediating impacts of innovation and internationalisation," Journal of Business Research, Elsevier, vol. 148(C), pages 116-130.
    17. 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.
    18. Dabić, Marina & Vlačić, Bozidar & Paul, Justin & Dana, Leo-Paul & Sahasranamam, Sreevas & Glinka, Beata, 2020. "Immigrant entrepreneurship: A review and research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 25-38.

    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. Morgan, Horatio M. & Sui, Sui & Baum, Matthias, 2018. "Are SMEs with immigrant owners exceptional exporters?," Journal of Business Venturing, Elsevier, vol. 33(3), pages 241-260.
    2. William K. Hutchinson, 2005. "“Linguistic Distance” as a Determinant of Bilateral Trade," Southern Economic Journal, John Wiley & Sons, vol. 72(1), pages 1-15, July.
    3. Helene Tenzer & Siri Terjesen & Anne-Wil Harzing, 2017. "Language in International Business: A Review and Agenda for Future Research," Management International Review, Springer, vol. 57(6), pages 815-854, December.
    4. Horatio M. Morgan & Sui Sui & Shavin Malhotra, 2021. "No place like home: The effect of exporting to the country of origin on the financial performance of immigrant-owned SMEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(3), pages 504-524, April.
    5. Melitz, Jacques, 2008. "Language and foreign trade," European Economic Review, Elsevier, vol. 52(4), pages 667-699, May.
    6. William K. Hutchinson, 2001. ""Linguistic Distance" as a Determinant of Bilateral Trade," Vanderbilt University Department of Economics Working Papers 0130, Vanderbilt University Department of Economics, revised Oct 2003.
    7. Nicolas Sauter, 2012. "Talking trade: language barriers in intra-Canadian commerce," Empirical Economics, Springer, vol. 42(1), pages 301-323, February.
    8. Melitz, Jacques & Toubal, Farid, 2014. "Native language, spoken language, translation and trade," Journal of International Economics, Elsevier, vol. 93(2), pages 351-363.
    9. Egger, Peter H. & Ehrlich, Maximilian v. & Nelson, Douglas R., 2020. "The trade effects of skilled versus unskilled migration," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 448-464.
    10. repec:edn:sirdps:417 is not listed on IDEAS
    11. repec:ebl:ecbull:v:6:y:2008:i:48:p:1-14 is not listed on IDEAS
    12. Noel Gaston & Douglas R. Nelson, 2013. "Bridging Trade Theory And Labour Econometrics: The Effects Of International Migration," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 98-139, February.
    13. Roger White & Bedassa Tadesse, 2011. "International Migration and Economic Integration," Books, Edward Elgar Publishing, number 14318.
    14. Roger White, 2010. "Migration and International Trade," Books, Edward Elgar Publishing, number 13670.
    15. Roger White & Bedassa Tadesse, 2008. "Cultural Distance and the US Immigrant–Trade Link," The World Economy, Wiley Blackwell, vol. 31(8), pages 1078-1096, August.
    16. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    17. Herrmann-Pillath, Carsten & Libman, Alexander & Yu, Xiaofan, 2014. "Economic integration in China: Politics and culture," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 470-492.
    18. Lin, Xiaohua & Yang, Xiyan, 2017. "From human capital externality to entrepreneurial aspiration: Revisiting the migration-trade linkage," Journal of World Business, Elsevier, vol. 52(3), pages 360-371.
    19. Michele Fratianni & Francesco Marchionne, 2012. "Trade Costs and Economic Development," Economic Geography, Taylor & Francis Journals, vol. 88(2), pages 137-163, April.
    20. White, Roger & Tadesse, Bedassa, 2008. "Immigrants, cultural distance and U.S. state-level exports of cultural products," The North American Journal of Economics and Finance, Elsevier, vol. 19(3), pages 331-348, December.
    21. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2017. "Anti-Migration as a Threat to Internationalization?," Ratio Working Papers 302, The Ratio Institute.
    22. Michele Fratianni & Francesco Marchionne, 2008. "Heterogeneity In Trade Costs," Economics Bulletin, AccessEcon, vol. 6(48), pages 1-14.

    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:worbus:v:50:y:2015:i:4:p:804-814. 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/620401/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.