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Transnational Networking and Business Success: Ethnic entrepreneurs in Canada

Author

Listed:
  • Dafna Kariv
  • Teresa V. Menzies
  • Gabrielle A. Brenner

    () (IEA, HEC Montréal)

  • Louis Jacques Filion

Abstract

It is agreed that transnational networking plays an important role in the effectiveness of ethnic entrepreneurial firms. Yet, distinctions between the different types of transnational networking and their effects on business effectiveness have received scant attention in the literature, probably because ethnicity has been considered the main actor in the networkingeffectiveness relationship. This paper argues that one of the reasons business effectiveness differs across ethnic entrepreneurial firms is that ethnic entrepreneurs engage in dissimilar types of transnational networking. Analyses of the data generated by 720 ethnic entrepreneurs in Canada, revealed that ethnicity, human capital and push-pull factors play a central role in the engagement of different types of transitional networking; and the different types of transnational networking affect the business turnover (sales) and the business survival (age). Push-pull factors were found to play a marginal role in the business effectiveness. These results highlight the competitive market immigrants and members of ethnic minority groups encounter in the hosting economy and stress the value of transnational networking.

Suggested Citation

  • Dafna Kariv & Teresa V. Menzies & Gabrielle A. Brenner & Louis Jacques Filion, 2006. "Transnational Networking and Business Success: Ethnic entrepreneurs in Canada," Cahiers de recherche 06-18, HEC Montréal, Institut d'économie appliquée.
  • Handle: RePEc:iea:carech:0618
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    File URL: http://www.hec.ca/iea/cahiers/2006/iea0618_gbrenner.pdf
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    Keywords

    Transnational Entrepreneurship; Networks; Immigrant Entrepreneurs; Ethnic Entrepreneur; Push and Pull Factors; Business Success; Business Outcomes;

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