Abstract
Migrations and international business have always been part of human history for many centuries. Migrations have continued today for various reasons including wars, but most importantly poverty. However, with the changing nature of the global economy and the development of technologies, the migration and international business has allowed a new category of migrants characterized by their socio-cultural embeddedness and engagement in at least two environments. Although this phenomenon called “brain drain” can be very bad for developing countries, as it stifles the effort of economic development of these countries by empting them of their skilled workforce and intellectual elites, it can also have a positive impact on the economies of developing countries and achieve what has been called “brain gain”. Although previous studies have helped for a better understanding of diaspora impact on home country in the areas such as poverty alleviation through remittances, entrepreneurship, and institutional transformation and innovation, several important issues related to diaspora still need the attention of researchers. The purpose of this research is to address some of these issues. So the research analyzes the determinants and challenges of diaspora entrepreneurship, the relevance and the limits of the concept of liability of foreignness in diaspora entrepreneurship. It also discusses the particularities of the performance of diaspora entrepreneurs and limits of the existing international business theories to explain diaspora entrepreneurship.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Acemoglu D, Johnson S, Robinson J (2002) Reversal of fortune: geography and institutions in the making of the modern world income distribution. Quart J Econ 117:1231–1294
Adogame A (2013) The African Christian diaspora: new currents and emerging trends in world Christianity. A&C Black, London
Anyaeche CO (2012) Current challenges to doing business in Sub-Saharan Africa. Modern Ghana. March
Beine M, Defoort C, Docquier F (2011) A panel data analysis of the brain-gain. World Dev 39(4):523–532
Benedict OH, Ukpere WI (2012) Brain drain and African development: any possible gain from the drain? Afr J Bus Manag 6(7):2421–2428
Bodomo A (2015) The African traveller and the Chinese customs official: ethnic minority profiling at border check points in Hong Kong and China? J Afr Am Stud 19(1):52–64
Bolt P (1996) Looking to diaspora: the oversears Chinese and China’s economic development, 1978–1994. Diaspora 5(3):467–496
Boly A, Coniglio ND, Prota F, Seric A (2014) Diaspora investments and firm export performance in selected sub-Saharan African countries. World Dev 59:422–433
Brinkerhoff J (2008a) The potential of diasporas and development. In: Brinkerhoff J (ed) Diasporas & development. Lynne Rienner Publishers, Boulder, CO, pp 1–15
Brinkerhoff J (ed) (2008b) Diasporas & development. Lynne Rienner Publishers, Boulder, CO
Brinkerhoff JM (2016) Institutional reform & diaspora entrepreneurs: the in-between advantage. Oxford University Press, New York
Brzozowski J, Cucculelli M, Surdej A (2017) The determinants of transnational entrepreneurship and transnational ties’ dynamics among immigrant entrepreneurs in ICT sector in Italy. Int Migr 55(3):105–125
Casson MC, Della Giusta M, Kambhampati US (2009) Formal and informal institutions and development. World Dev 38(2):137–141
Chand M, Tung RL (2011) Diaspora as the boundary-spanners: the role of trust in business facilitation. J Trust Res 1(1):107–129
Chin K, In-Jin Y, David S (1996) Immigrant small business and international economic linkage: a case of the Korean wig business in Los Angeles, 1968–1977. Int Migr Rev 3(2):485–510
Chrysostome EV (2010) The success factors of necessity immigrant entrepreneurs: in search of a model. Thunderbird Int Bus Rev 52(2):137–152
Chrysostome EV (2014) Diaspora entrepreneurship in Africa. Exploring a promising tool of socio-economic development. In: Chrysostome EV, Molz R (eds) Building businesses in emerging and developing countries: challenges and opportunities. Routledge, New York
Ciccone A, Papaioannou E (2007) Red tape and delayed entry. J Eur Econ Assoc 5(2-3):444–458
Drori I, Honig B, Wright M (2009) Transnational entrepreneurship: an emergent field of study. Entrep Theory Pract 33:1001–1022
Eckstein SE (2013a) Preface. In: Eckstein SE, Najam A (eds) How immigrants impact their homelands. Duke University Press, Durham, pp XIII–XXVI
Eckstein SE (2013b) Immigrants from developing countries: an overview of their homeland impacts. In: Eckstein SE, Najam A (eds) How immigrants impact their homelands. Duke University Press, Durham, pp 1–29
Eckstein SE, Najam A (eds) (2013) How immigrants impact their homelands. Duke University Press, Durham
Elbialy N, Gouda M (2011) Enforcing IPR through informal institutions: the possible role of religion in fighting software piracy. Working Paper Series in economics, No. 20-2011. University of Marburg
Elo M (2015) Diaspora networks and international business: a review on an emerging stream of research. In: Larimo J, Nummela N, Mainela T (eds) Handbook on international alliance and network research. Edward Elwar, Cheltenham, pp 13–39
Elo M (2016) Typology of diaspora entrepreneurship: case studies in Uzbekistan. J Int Entrep 14(1):121–155
Elo M, Riddle L (2016) Understanding diaspora investment. In: Elo M, Riddle L (eds) Diaspora business. Interdisciplinary Press, Oxford, pp 1–16
Elo M, Volovelski EK (2016) Jewish diaspora entrepreneurs – the impact of religion on opportunity exploration and exploitation. Int J Entrep Small Bus 31:244–269
Esfahani HS, Ramirez MT (2003) Institutions, infrastructure, and economic growth. J Dev Econ 70(2):443–477
Fairlie RW, Lofstrom M (2013) Immigration and entrepreneurship. In: Chiswick BR, Miller PW (eds) Handbook of the economics of international migration, vol 1B. Elsevier, Amsterdam, pp 877–911
Foltz R (2013) Silk road and migration. In: Encyclopedia of global human migration. https://doi.org/10.1002/9781444351071.wbeghm484
Forman L, Nogueira S, Gláucio, G (2007) In search of equity in Brazil: a Brazil Foundation perspective. [revista.drclas.harvard.edu/book/search-equity-brazil-brazilfoundation-perspective]
Gayle N, Navarro D, Mukerezi P, Barchue A (2013) Leveraging and tapping diaspora remittances for development. Conference of International Fund for Agricultural Development (IFAD)
Gevorkyan AV (2015) The legends of the Caucasus: economic transformation of Armenia and Georgia. Int Bus Rev 24(6):1009–1024
Gillespie K, Riddle L, Sayre E, Sturges D (1999) Diaspora interest in homeland investment. J Int Bus Stud 30(3):623–634
Glaeser E, La Porta R, Lopez-de-Silanes F, Shleifer A (2004) Do institutions cause growth? J Econ Growth 9:271–303
Goldring L (1992) La migracion México–EUA y la transnacionalización del espacio polıtico y social: perspectivas desde el México rural. Estudios Sociológicos X(29):315–340
Gray M (1997) Russia fights crime and corruption. Trends Organized Crime 2(4):32–33
Guriev S (2004) Red tape and corruption. J Dev Econ 73(2):489–504
Harzing A-W (2000) An empirical analysis and extension of the Bartlett and Ghoshal typology of multinational companies. J Int Stud 31(10):101–119
Hercog M, Siegel M (2013) Diaspora engagement in India: from non-required Indians to angels of development. In: Collyer M (ed) Emigration nations: policies and ideologies of emigrant engagement. Palgrave Macmillan, London, pp 75–99
Hymer HS (1976) The international operation of national firms: a study of foreign direct investment. MIT Press, Cambridge, MA
Iskander N (2013) Moroccan Migrants as unlikely captains of industry remittances, financial intermediation, and la Banque Centrale Populaire. In: Eckstein SE, Najam A (eds) How immigrants impact their homelands. Duke University Press, Durham, pp 156–190
Jacoby D (1999) Migrations familiales et strategies commerciales venitiennes aux XII et XIII siecles. In: Balard M, Ducellier A (eds) Migrations et Diasporas Mediterranennes: Xe au XVe siecles. 355–374
Johanson J, Mattsson LG (1988) Internationalization in industrial system: a network approach. In: Hood N, Vahlne JE (eds) Strategies in global competition. Croom Helm, London, pp 468–486
Johanson J, Vahlne JE (1977) The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments. J Int Bus Stud 8(1):22–32
Johanson J, Vahlne JE (2009) The Uppsala internationalization model revisited: from liability of foreignness to liability of outsidership. J Int Bus Stud 40:1411–1433
Kaba JA (2011) The status of Africa’s emigration brain drain in the 21st century. West J Black Stud 35(3):187–207
Kamoche K (2011) Contemporary developments in the management of human resources in Africa. J World Bus 46(1):1–4
Kapur D (2007) The Janus face of diasporas. In: Merz BJ, Chen LC, Geithner PF (eds) Diasporas and development. Global Equity Initiative, Cambridge, pp 89–118
Kim SY (1983) International migration of Korean workers: its impact on the economy (in Korean). Econ Bus J 5(1):39–56
Lubambu KMK (2014) The impacts of remittances on developing countries. http://www.europarl.europa.eu/RegData/etudes/etudes/join/2014/433786/EXPO-DEVE_ET
Knight GA, Causgil ST (1996) The born global firm: a challenge to traditional internationalization theory. Adv Int Mark 8:11–26
Kshetri N, Rojas-Torres D, Acevedo MC (2015) Diaspora networks, non-economic remittances and entrepreneurship development: evidence from some economies in Latin America. J Dev Entrep 20(01):1550005.1–1550005.18
Lacroix T, Levitt P, Vari-Lavoisier I (2016) Social remittances and the changing transnational political landscape. Comp Migr Stud 4:16. https://doi.org/10.1186/s40878-016-0032-0
Lee LK (2005) The Korean diaspora and its impact on Korea development. Asia Pac Migr J 14(1–2):149–168
Lever-Tracy C, Ip D, Tracy N (1996) The Chinese diaspora and mainland China: an emerging economic synergy. Palgrave Macmillan, London. 336 p
Levitt P (1996) Social remittances: a conceptual tool for understanding migration and development. Working Paper 96.04. Harvard, Cambridge, MA
Levitt P, Lamba-Nieves D (2011) Social remittances revisited. J Ethn Migr Stud 37(1):1–22
Lin X (2010) The diaspora solution to innovation capacity development: immigrant entrepreneurs in the contemporary world. Thunderbird Int Bus Rev 52(2):123–136
Lin X, Tao S (2012) Transnational entrepreneurs: characteristics, drivers, and success factors. J Int Entrep 10(1):50–69
Madsen TK, Servais P (1997) The internationalization of born globals: an evolutionary process? Int Bus Rev 6(6):561–583
Mark J (2014) Silk road. In: Ancient History Encyclopedia. https://www.ancient.eu/Silk_Road/
Mauro P (1995) Corruption and growth. Quart J Econ 110(3):681–712
Mercer C, Page B, Evans M (2008) Development and the African diaspora. Zed Books, London
Merz BJ, Chen LC, Geithner PF (eds) (2007) Diasporas and development. Global Equity Initiative Harvard University, Cambridge
Minto-Coy ID (2011) “Beyond remittancing”: an investigation of the role of ICTs in facilitating and extending the diaspora’s contribution to the Caribbean. Can Foreign Policy J 17(2):129–141
Minto-Coy ID (2016) Diaspora engagement for development in the Caribbean. In: Diasporas, development and governance. Springer, New York, pp 121–113
Moctezuma M (2000) La organización de los migrantes zacatecanos en Estados Unidos. Cuadernos Agrarios 19(20):81–104
Mukenge L (1974) Businessmen in Zaire: limited possibilities for capital accumulation under dependence. PhD Thesis, McGill University, Montreal
Newland K (ed) (2010) Diasporas: new partners in global development policy. MPI, Washington, DC
Newland K, Tanaka H (2010) Mobilizing diaspora entrepreneurship for development. In: Newland K (ed) Diasporas: new partners in global development policy. MPI, Washington, DC, pp 25–59
Newland K, Taylor C (2010) Heritage tourism and nostalgia trade: a diaspora niche in the development landscape. In: Newland K (ed) Diasporas: new partners in global development policy. MPI, Washington, DC, pp 94–125
Nichols S (2002) Another kind of remittances: transfer of agricultural innovations by migrants to their communities of origin. In: Paper presented at the Second Colloquium on International Migration: Mexico – University of California, Berkeley, CA
Nielsen TM, Riddle L (2009) Investing in peace: the motivational dynamics of diaspora investment in post-conflict economies. J Bus Ethics 89(4):435–448. https://doi.org/10.1007/s10551-010-0399-z
Nkongolo JM, Chrysostome EV (2013) Engaging diasporas as international entrepreneurs in developing countries: in search of determinants. J Int Entrep 11(1):30–64
Nun N, Wantchekon L (2010) Slave trade and origins of mistrust in Africa. Am Econ Rev 101(December):3221–3252
Nyberg-Sorensen N, Van Hear N, Engberg-Pedersen P (2002) The migration-development nexus: evidence and policy options. Int Migr 40(5):49–71
Oviatt BM, McDougal PP (1995) Global start-ups: entrepreneurs on a worldwide stage. Acad Manag Exec 9(2):30–43
Pande R, Urdy C (2005) Institutions and development: a view from below. In: Blundell R, Persson T (eds) Proceedings of the 9th world congress of the econometric society. Cambridge University Press, Cambridge
Patel PC, Conklin B (2010) One world or world apart? Dual institutional focus to enhance venture performance. In: Honig B, Drori I, Carmichael B (eds) Transnational and immigrant entrepreneurship in a globalized world. University of Toronto Press, Toronto, pp 100–121
Patterson R (2006) Transnationalism: diaspora-homeland development. Soc Forces 84(4):1891–1907
Pejovich S (1999) The effects of the interaction of formal and informal institutions on social stability and economic development. J Mark Morality 2(2):164–181
Plaza S, Ratha D (2011) Diaspora harnessing resources for Africa. In: Plaza S, Ratha D (eds) Diaspora for development in Africa. World Bank, Washington, DC, pp 1–54
Portes A (2001) Introduction: the debates and significance of immigrant transnationalism. Glob Netw 1(3):181–193
Rahman S (2010) Brain-gain in Bangladesh: what makes it possible? Int J Innov Manag Technol 1(2):152–157
Rana MB, Elo M (2017) Transnational diaspora and civil society actors driving MNE internationalisation: the case of Grameenphone in Bangladesh. J Int Manag 23(1):87–106
Riddle L (2008a) Diaspora: exploring their development potential. ESR Rev 10(2):28–35
Riddle L (2008b) Mobilizing diaspora homeland investment. In: Brinkerhoff J (ed) Diasporas & development: exploring the potential. Lynne Rienner, Boulder, CO, pp 90–97
Riddle L, Brinkerhoff J (2011) Diaspora entrepreneurs as institutional change agents: the case of Thamel.com. Int Bus Rev 20(6):670–680
Riddle L, Brinkerhoff JM, Nielsen TM (2008) Partnering to beckon them home: public-sector innovation for diaspora foreign investment promotion. Public Adm Dev 28(1):54–66
Rodrik D (2000) Institutions for high quality growth: what there are and how to acquire them. Working Paper No 7540. National Bureau of Economic Research
Rugman AM, Verbeke A (2004) A perspective on regional and global strategies of multinational enterprises. J Int Bus Stud 35(1):3–18
Rugman AM, Verbeke A (2007) Liabilities of regional foreignness and the use of firm-level versus country-level data: a response to Dunning et al. (2007). J Int Bus Stud 38(1):200–205
Safran W (1991) Diasporas in modern societies: myths of homeland and return. Diaspora 1(1):83–99
Sahoo S, Pattanaik BK (eds) (2014) Global diasporas and development: socioeconomic, cultural, and policy perspectives. Springer, New Delhi
Sana M (2005) Buying membership in the transnational community: migrant remittances, social status and assimilation. Popul Res Policy Rev 24:231–261
Saxenian AL (2002) Silicon Valley’s new immigrant high growth entrepreneur. Econ Dev Quart 16(1):20–31
Saxenian AL (2005) From brain drain to brain circulation: transnational communities and regional upgrading in India and China. Stud Comp Int Dev 40(2):35–61
Sequeira JM, Carr JC, Rasheed AA (2009) Transnational entrepreneurship: determinants of firm types and owner attributions of success. Entrep Theory Pract 33(5):1023–1044
Sheifer A, Vishny R (1993) Corruption. Quart J Econ 109(3):599–617
Singh AD (2012) Working with the diaspora for development: policy perspectives from India. Working Paper No 376. Indian Institute of Management
Smart A, Hsu JY (2007) The Chinese diaspora and Foreign Investment and economic development in China. Rev Int Aff 3(4):544–566
Tung R, Lazarova M (2007) Brain drain versus grain gain: an exploratory study of ex-host country national in Central and Eastern Europe. Int J Hum Resour Manag 17(11):1853–1872
Vaaler PM (2011) Immigrant remittances and the venture investment environment of developing countries. J Int Bus Stud 42(9):1121–1149
Wescott CG, Brinkerhoff JM (eds) (2006) Converting migration drains into gains: harnessing the resources of overseas professionals. Asian Development Bank, Manila
World Bank (2006) Global economic prospects: economic implications of remittances and migration. World Bank, Washington, DC
World Bank (2015) Migrations and remittances: Factbook 2015, 3rd edn. World Bank, Washington, DC
World Bank (2016) Migrations and remittances: Factbook 2016, 3rd edn. World Bank, Washington, DC
Yang G (2010) La Famille, Pire Ennemi de l’Africain. http://kamitewoman.over-blog.com/article. Accessed Dec 2012
Zaheer S (1995) Overcoming the liability of foreignness. Acad Manag J 38(2):341–363
Zaheer S, Mosakowski E (1997) The dynamics of the liability of foreignness: a global study of survival in financial services. Strateg Manag J 18(6):439–463
Zolin R, Schlosser F (2013) Characteristics of immigrant entrepreneurs and their involvement in international new ventures. Thunderbird Int Bus Rev 55(3):271–284
Zong J, Batalova J (2016) Asian immigrants in the United States. Migration Policy Institute (MPI). Janvier
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer International Publishing AG, part of Springer Nature
About this chapter
Cite this chapter
Chrysostome, E., Nkongolo-Bakenda, JM. (2019). Diaspora and International Business in the Homeland: From Impact of Remittances to Determinants of Entrepreneurship and Research Agenda. 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_2
Download citation
DOI: https://doi.org/10.1007/978-3-319-91095-6_2
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-91094-9
Online ISBN: 978-3-319-91095-6
eBook Packages: Business and ManagementBusiness and Management (R0)