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Founder ethnic composition, early internationalization, and new venture performance

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  • Guohua Jiang

    (West Chester University)

  • Masaaki Kotabe

    (Temple University)

  • Feng Zhang

    (The Pennsylvania State University Abington)

Abstract

This study empirically examines the role of founder ethnic composition in international new venture (INV) strategy choice and performance. We find that new ventures with more immigrant entrepreneurs on the founding team have an advantage of pursuing an INV strategy to generate higher revenues. Moreover, new ventures with an ethnically diversified founding team tend to achieve higher revenues and profits. Our findings suggest that immigrant entrepreneurs can align available immigrant resources with their new ventures’ international strategy to increase venture performance. This study contributes to both immigrant and international entrepreneurship literature. Managerial and policy implications are also discussed.

Suggested Citation

  • Guohua Jiang & Masaaki Kotabe & Feng Zhang, 2020. "Founder ethnic composition, early internationalization, and new venture performance," Journal of International Entrepreneurship, Springer, vol. 18(4), pages 419-443, December.
    • Handle: RePEc:kap:jinten:v:18:y:2020:i:4:d:10.1007_s10843-020-00281-5
    DOI: 10.1007/s10843-020-00281-5
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    Cited by:

    1. Wise, Sean & Yeganegi, Sepideh & Laplume, André O., 2022. "Startup team ethnic diversity and investment capital raised," Journal of Business Venturing Insights, Elsevier, vol. 17(C).

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