Diaspora Ownership and Homeland Firms' Internationalization

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Although the contribution of diaspora to international business is becoming more evident, little is known about the channels used by individual firms to benefit from diaspora. In this paper, we propose equity ownership as a form of connection between the homeland firms and diasporans (i.e. diaspora members). Specifically, we draw on the literature on diaspora combined with an owners-as-resources perspective to theorize about how diaspora owners can affect the homeland firm's internationalization. We suggest that the anticipated entry costs deriving from the liability of foreignness faced by homeland firms explain how the impact of diaspora owners varies depending on entry mode. Finally, we compare diaspora owners to other types of foreign owner which we argue have lower levels of motivation and ability to help homeland firms to internationalize, and contribute relatively less to their internationalization than diaspora owners. We test and confirm our predictions using data on 2608 domestically controlled Indian firms and their internationalization in 2006–2012.
Original languageEnglish
JournalJournal of International Management
Number of pages15
ISSN1075-4253
DOIs
Publication statusPublished - 11 Jan 2019

Bibliographical note

Epub ahead of print. Published online: 11. January 2019

Keywords

  • Diaspora
  • Immigrants
  • Firm internationalization
  • Cross-border acquisition
  • Export
  • Foreign ownership

Cite this

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title = "Diaspora Ownership and Homeland Firms' Internationalization",
abstract = "Although the contribution of diaspora to international business is becoming more evident, little is known about the channels used by individual firms to benefit from diaspora. In this paper, we propose equity ownership as a form of connection between the homeland firms and diasporans (i.e. diaspora members). Specifically, we draw on the literature on diaspora combined with an owners-as-resources perspective to theorize about how diaspora owners can affect the homeland firm's internationalization. We suggest that the anticipated entry costs deriving from the liability of foreignness faced by homeland firms explain how the impact of diaspora owners varies depending on entry mode. Finally, we compare diaspora owners to other types of foreign owner which we argue have lower levels of motivation and ability to help homeland firms to internationalize, and contribute relatively less to their internationalization than diaspora owners. We test and confirm our predictions using data on 2608 domestically controlled Indian firms and their internationalization in 2006–2012.",
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Diaspora Ownership and Homeland Firms' Internationalization. / Rabbiosi, Larissa; Gregoric, Aleksandra; Stucchi, Tamara.

In: Journal of International Management, 11.01.2019.

Research output: Contribution to journalJournal articleResearchpeer-review

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