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Social capital as a club good: the case of ethnic communities and entrepreneurship

Author

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  • Craig S. Galbraith
  • Carlos L. Rodriguez
  • Curt H. Stiles

Abstract

Purpose - The purpose of this paper is to offer the economic theory of clubs as a potential unifying paradigm for the study of ethnic economies and social capital. Design/methodology/approach - The paper examines the basic concepts of club theory, and reviews the empirical literature. It then applies club theory to the notion of social capital within the context of ethnic communities. It is argued that although various sociological frameworks of social capital and social networks have provided powerful descriptive models of ethnic and immigrant population behaviors, social capital needs to be examined from an economic perspective to increase prescriptive capabilities. Findings - Using club theory the paper conceptualizes the benefits derived from an ethnic grouping – among which social capital can be considered the most important – as a “club” good, supplied at the co‐ethnic level and demanded by the various key stakeholders within an ethnic community. While these benefits are at least partially non‐rivalrous, they have clear characteristics of excludability and therefore form a “pseudo‐public” good. Four propositions are then offered regarding the behavior of ethnic entrepreneurs who draw from these important ethnic resources. Originality/value - This paper offers a new way to examine social capital within ethnic communities. It also provides an economic foundation to begin analyzing optimal economic and social structures within these communities.

Suggested Citation

  • Craig S. Galbraith & Carlos L. Rodriguez & Curt H. Stiles, 2007. "Social capital as a club good: the case of ethnic communities and entrepreneurship," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 1(1), pages 38-53, April.
    • Handle: RePEc:eme:jecpps:v:1:y:2007:i:1:p:38-53
    DOI: 10.1108/17506200710736258
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    Citations

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    Cited by:

    1. Ivan Light & Léo–Paul Dana, 2013. "Boundaries of Social Capital in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 37(3), pages 603-624, May.
    2. Lee, Min-Ah & Ferraro, Kenneth F., 2009. "Perceived discrimination and health among Puerto Rican and Mexican Americans: Buffering effect of the Lazo matrimonial?," Social Science & Medicine, Elsevier, vol. 68(11), pages 1966-1974, June.
    3. Matthew Roskruge & Jacques Poot & Laura King, 2016. "Social capital, entrepreneurship and living standards: differences between migrants and the native born," Chapters, in: Hans Westlund & Johan P. Larsson (ed.), Handbook of Social Capital and Regional Development, chapter 9, pages 221-254, Edward Elgar Publishing.
    4. Saumya Bandara & Ravindra Dissanayake, 2021. "Tribalism and Radicalisation: A Critical Review on Marketing and Branding Practices in Developing Social Cohesion," Technium Social Sciences Journal, Technium Science, vol. 16(1), pages 420-437, February.
    5. Simon Bawakyillenuo & Innocent Sefa Komla Agbelie, 2021. "Environmental Consciousness of Entrepreneurs in Ghana: How Do Entrepreneur Types, Demographic Characteristics and Product Competitiveness Count?," Sustainability, MDPI, vol. 13(16), pages 1-16, August.
    6. Lucia Lo & Carlos Teixeira, 2015. "Sustaining Immigrant Entrepreneurship in Small- and Medium-sized Cities," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 1(2), pages 146-162, July.
    7. Lucia Lo & Carlos Teixeira, 2015. "Immigrants Doing Business in a Mid-sized Canadian City: Challenges, Opportunities, and Local Strategies in Kelowna, British Columbia," Growth and Change, Wiley Blackwell, vol. 46(4), pages 631-653, December.

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