Conforming to the host country versus being distinct to our home countries

Abstract

Purpose The purpose of this paper is to examine how ethnic migrant entrepreneurs (EMEs) utilise identity work to build legitimacy in a host country. According to optimal distinctiveness theory (ODT), legitimacy is achieved by balancing conformance and distinctiveness. This paper draws on ODT in the context of ethnic migrant entrepreneurship to examine how EMEs both fit in (conformance) and maintain their uniqueness (distinctiveness) in cross-cultural settings. Design/methodology/approach This study adopts a qualitative approach utilising semi-structured interviews to examine the identity work of EMEs from three distinct countries (Indonesia, Pakistan and South Korea (henceforth Korea)) in one host country (Malaysia). Findings The results show that EMEs’ identity work incorporates both the blurring and strengthening of host-home country boundaries. Building on this study’s results, the authors develop a model of identity work and three propositions regarding legitimacy building through identity in the context of ethnic migrant entrepreneurship. Originality/value Through the model and propositions, this research contributes to the identity, international entrepreneurship and ethnic migrant entrepreneurship discourse by identifying the mechanisms, focus and key features of identity work for entrepreneurs operating in cross-cultural settings. In so doing, this research also offers an alternative interpretation on the apparent divergent views around identity work in the fields of organisation (advocate isomorphism) and entrepreneurship (advocate uniqueness).

Challenges experienced by immigrant entrepreneurs in a developing non-Western country: Malaysia

“…Within the context of immigrant entrepreneurship, components in this aspect primarily stem from governmental legislation, agreements, and standards that can encourage or discourage entrepreneurship activities in the host country (Mata & Alves, 2018). For IEs, the formal aspects of institutions mainly govern their access to the host country's opportunities through two dimensions: the labour market and the entrepreneurial opportunity structure (Abd Hamid et al, 2019). It is documented that IEs usually face challenges in obtaining resources and experience administrative difficulties when starting their ventures, mainly stemming from their lack of knowledge in the host country's language and customs (Carter, Mwaura, Ram, Trehan, & Jones, 2015).…”

“…Furthermore, Malaysia's formal and informal profiles with regards to immigrant entrepreneurship may differ from that of conventional immigrant-receiving countries. Specifically, immigration to Malaysia is mainly composed of migrant workers, not IEs which lends to its unfamiliarity with IEs' businesses (Abd Hamid et al, 2019;Hugo, 2011). On the other hand, IEs' home countries in this study represent varying characteristics that influence IEs' journeys in their venture development (Brzozowski, Cucculelli, & Surdej, 2014), in which Indonesian IEs can leverage from the similar Malay-based history, Pakistani IEs share similar Islamic values as Malaysia, while Korean IEs can benefit from their position as immigrants from a more prosperous country than the host country.…”

“…While the developed Western world consistently hosts a large pool of immigrants, immigration to such countries slowly declines due to many immigration policy reforms; while immigration to developing non-Western nations gradually rises (United Nations, 2019). Developing and non-Western countries such as Malaysia provide a useful background in understanding institutions and immigrant entrepreneurship activities due to its nascent experience in dealing with foreign entrepreneurs (Abd Hamid, O'Kane, & Everett, 2019)and the role of culture and traditions shaping its environment (Barkema, Chen, George, Luo, & Tsui, 2015). As an implication, international business decisionmakers navigate the complexity of relationship-based processes and the host nation's focus on development (Barkema et al, 2015;Sharma, Luk, Cardinali, & Ogasavara, 2018).…”

Migration contexts in shaping community ethnic resources: a Forms of Capital approach on ethnic migrant entrepreneurs in Malaysia

“…EMEs often rely on the social capital of their ethnic group, an outcome of in-group ties which encourage knowledge-sharing; thus, enabling access to information, resources and opportunities and therefore act as an organic business incubator for entrepreneurs (Vershinina et al , 2011; Ram et al , 2008; Stephens, 2013). EMEs, in particular, have been documented to have access to unique opportunities that could be difficult to be exploited by local entrepreneurs, for example, information on the demand for ethnic restaurants or information for supply sources from EMEs’ home countries (Abd Hamid et al , 2019; Chand, 2012).…”

Ethnic entrepreneurship: A bibliometric review and future research agenda

“…We cannot forget that opportunities are at the heart of entrepreneurial activity, and there are external or internal circumstances where the entrepreneur needs to decide the course of action in various contexts such as community involvement, within the enclave, in some niche markets, in the family, in access to finance, in culture, in religion, through demand for goods and/or services and in meeting consumer needs (Abd Hamid et al, 2019;Assudani, 2009;Dana et al, 2020;Gbadamosi, 2019;Valdez, 2016;Wang, 2019). Family cohesion, cultural values have been fundamental to entrepreneurial success, largely as a reaction to institutional constraints, ethically leading the entrepreneur to resort to activities in the formal and informal economy (Cederberg & Villares-Varela, 2019;Ojo, 2019;Razin & Langlois, 1996;Razin & Light, 1998;Vershinina et al, 2011).…”