To Try or Not to Try? A Story of Diaspora Entrepreneurship

Abstract

Purpose

The purpose of this study is to present how a German-origin diaspora entrepreneur successfully introduces a new concept to Uzbekistan by orchestrating diaspora and local resources into a transnational diaspora venture, a kind of international new venture. Diaspora entrepreneurs can act as catalysts for market entry of innovations as they possess unique perspectives and competencies. Thus, the study increases the understanding of transnational diaspora entrepreneurship.

Methodology/approach

A single embedded case study supported with ethnographic methods was employed. The explorative strategy assisted to discover ways how the entrepreneur succeeded in entering this difficult market with a totally novel concept.

Findings

Perceived opportunity triggered the migration of the entrepreneur. Her transnational entrepreneurial competences and perspectives together with an efficient usage of various network resources in host and home country enabled a successful entry of the new venture as opposed to normal entry barriers. The study illustrates how diaspora effects can be employed for right timing and achieving first-mover advantages in diffusion of innovation and market entry.

Originality/value

The study contributes to the emerging stream of research on transnational diaspora entrepreneurship and introduces a unique “rich-to-emerging” diaspora venture entry in a transition economy. This is among the first catalyst cases that provide implications for the organization of entry process, diaspora entrepreneurship, and management. It represents a new form of international new ventures that succeeded where big players like Starbucks and McDonalds did not.

Citation

Elo, M., Harima, A. and Freiling, J. (2015), "To Try or Not to Try? A Story of Diaspora Entrepreneurship", The Future of Global Organizing (Progress in International Business Research, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 283-293. https://doi.org/10.1108/S1745-886220150000010015