Explaining the multifaceted patterns of migrant firms in the global economy: A resource-based approach

Purpose – This article introduces a novel theoretical model aimed at categorizing in a unitary framework the migrant enterprise as an autonomous entity, providing a reliable explanation of the heterogeneous features and performances displayed by these firms in the global economy. The model is effective in explaining the multifaceted patterns of migrant businesses, even when they operate in similar socioeconomic settings and they are managed by entrepreneurs of the same ethnic background. Design/methodology/approach – The model draws insights from the resource-based view, combining them with new stakeholder theory. By integrating the two theoretical perspectives, the migrant enterprise can be described as a collective entity endowed with tangible and intangible firm-level and entrepreneurial resources that are accumulated, activated and revitalized through the set of strategies pursued by the firm throughout its existence. The value created by migrant firms is influenced by the interactions with the internal and external network of local co-ethnic and non-co-ethnic stakeholders as well as those with transnational stakeholders. Interactions between the migrant firms and its stakeholders determine different rent distribution outcomes. Findings – The theoretical model highlights the role of entrepreneurial and firm-level resources that are accumulated, activated and revitalized by migrant firms throughout their existence. The resource endowment can be enhanced through the multiple links migrant firms have with local and transnational stakeholders as well as by exploiting the opportunity structure available in the destination country. Co-ethnic and non-co-ethnic resources can further enhance migrant firms’ competitiveness, provided they are utilized to foster innovation, acquire knowledge and facilitate organizational growth (high road towards resource appropriation), rather than being leveraged solely to extract economic rent from local and transnational stakeholders (low road). Practical implications – The proposed theoretical framework suggests that one-size-fits-all approaches towards migrant entrepreneurship do not represent the best solution to favour inclusion of migrant entrepreneurs. Conversely, indirect forms of support aimed at improving local and national institutions and facilitating social and economic inclusion of ethnic communities could prove more effective in generating valuable synergies between migrant firms and the external environment in which they are embedded. Additionally, initiatives aimed at raising the endowment of intangible resources and organizational assets, strengthening human capital and entrepreneurial skills, extending transnational ties and encouraging the creation of businesses with a multicultural configuration should be encouraged. Originality/value – By integrating the resource-based view with new stakeholder theory, the proposed framework introduces a novel theoretical approach to explain the migrant entrepreneurship phenomenon. Our approach is effective for several reasons: firstly, it highlights the specific characteristics that distinguish migrant companies from native companies; secondly, it elucidates the heterogeneous evolutionary paths and the divergent performance and growth rates that are visible among migrant firms; thirdly, it provides a coherent and generalizable explanation of the wide range of migrant business models across different economic and social contexts.