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Diaspora Networks in International Business pp 229–256Cite as

Social Capital, Diaspora and Post Internationalization: A Developing Economy Case

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Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

International new ventures (INVs) from high tech industry in developing economies need international markets in order to survive and/or develop their business activities. INVs have utilized their bonding social capital to overcome their liabilities and success in foreign market. In this study we focus on Costa Rican software firms who have took advantage of the immigrants in their CORs (diaspora) that generates bonding and bridging social capital to enter to international markets, particularly in US market. The case study analyses of four companies suggest that bonding social capital originating from diaspora enables INVs to implement lower and more inexpensive modes of entry and bridging social capital enables originating from other ties them to increase the sales in foreign market. The influences of the diaspora on social capital provoke a positive change on firms’ performance.

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Authors and Affiliations

  1. Research Institute of Economics Science, University of Costa Rica, San Pedro, Costa Rica

    Luis Zárate-Montero

  2. School of Business and Economics, Linnaeus University, Kalmar, Sweden

    Rosalina Torres-Ortega

Authors
  1. Luis Zárate-Montero
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  2. Rosalina Torres-Ortega
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Correspondence to Luis Zárate-Montero .

Editor information

Editors and Affiliations

  1. School of Economics, Belt & Road, Institute of International Business, Shanghai University, Shanghai, China

    Maria Elo

  2. Turku School of Economics, University of Turku, Turku, Finland

    Maria Elo

  3. Migration Institute of Finland, Turku, Finland

    Maria Elo

  4. Mona School of Business and Management, The University of West Indies, Mona, Kingston, Jamaica

    Indianna Minto-Coy

  5. International Migration Research Centre, Wilfrid Laurier University, Waterloo, Canada

    Indianna Minto-Coy

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Zárate-Montero, L., Torres-Ortega, R. (2019). Social Capital, Diaspora and Post Internationalization: A Developing Economy Case. In: Elo, M., Minto-Coy, I. (eds) Diaspora Networks in International Business. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-91095-6_12

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