Migrant human and political capitals value in entrepreneur enterprise performance. A comparative study of four emerging markets

Abstract

This paper investigates the impact of human and political capitals of entrepreneurs on enterprise performance in four emerging nations.The rent generation potential of these capitals is a well established fact, however, much less is known concerning the contingent nature of their value creation prowess. In this work, we draw on institutional theory and dynamic managerial capabilities perspective to examine the interactive effect of country of origin economic developement level and the international experience of entrepreurs, on the capitals, with respect to a set of financial indicators. Employing a quantitative methodology, our findings reveal that the relationship between the capitals and enterprise performance are indeeed contingent with the capitals of home-grown entrepreneurs, rather than those of returnee migrant entrepreneurs, exhibiting a greater propensity to influence enterprise performance. We conclude with implications for theory and practice.

Internal migration and earnings: Do migrant entrepreneurs and migrant employees differ?

“…Recent literature highlights some particularly prevalent difficulties, including the lack of network ties with local business partners, supply chains, banks, and government officials. For example, Brown et al (2021) examine 132 entrepreneurs in four countries (Colombia, Poland, Nigeria, and Romania) and find that the relationship between political capital and firm performance is stronger for home-grown entrepreneurs. In addition, Lassalle et al (2020) conduct in-depth interviews with 28 Polish migrant entrepreneurs and show that migrant entrepreneurs' embeddedness is dynamic and evolves across three types of networks: the origin region networks, the host region migrant networks, and the host region indigenous networks, with the indigenous networks being least developed and taking more time to build.…”

Entrepreneurial migrants from/in emerging economies: breaking taboos and stereotypes

“…The Brown et al (2021) study paid attention to the taboo/ stereotype related to the contribution of entrepreneurial capabilities of returned migrants to home country economic development and the negative connotation of political capital. The study analyzes the role of human and political capital from home/returned migrants on performance and economic development in four emerging economies (Colombia, Poland, Nigeria, and Romania).…”

Immersed in Coleman's bathtub: multilevel dynamics driving new venture survival in emerging markets

“…For example, Brazil has been continually ranked as having environments with difficulties for starting a business, ranking low at #124 out of 190. This inhibits the development of entrepreneurship because of the regulatory environment (World Bank, 2020) and the political sway governments have on support services to entrepreneurs (Brown et al. , 2021).…”