Immigrant entrepreneurs, the ethnic enclave strategy, and venture performance

Strategic Direction

ISSN: 0258-0543

Article publication date: 23 August 2011

Keywords

Citation

Ndofor, H.A. (2011), "Immigrant entrepreneurs, the ethnic enclave strategy, and venture performance", Strategic Direction, Vol. 27 No. 9. https://doi.org/10.1108/sd.2011.05627iaa.014

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited


Immigrant entrepreneurs, the ethnic enclave strategy, and venture performance

Article Type: Abstracts From: Strategic Direction, Volume 27, Issue 9

Ndofor H.A, and Priem R.L.Journal of Management, May 2011, Vol. 37 No. 3, Start page: 790, No. of pages: 28

Argues that first- and second-generation immigrant entrepreneurs’ endowments of economic, human, and social capital, together with their degrees of social identification with their ethnic community, affect their elemental strategic choice to pursue a venture strategy focused either on their ethnic enclave or the dominant market. The authors then propose that this choice affects venture performance indirectly, depending on how well the entrepreneur’s capital endowment allows the chosen strategy to be executed. The authors test these ideas via a field study of 103 first- and second-generation immigrant-owned ventures in a US Midwest state. The findings indicate that immigrant entrepreneurs’ capital endowments and social identities influence their choice of an enclave versus dominant market venture strategy. Moreover, it is the particular alignment of entrepreneurial capital and strategy that ultimately shapes venture performance.Article type: Research paperISSN: 0149-2063Reference: 40AK571

Keywords: Ethnic groups, Immigrants, Start-ups