root wing net jet bacelona short5 - UAB Barcelona...Zhongguancun Science Park . A successful business depends on favorable climatic, geographic, and human conditions. What are the

The Arab Spring

• Technology (Technoratis Shirky et al.: Social media, a Facebook revolution that is twittered)

• Demography (a rapidly growing young population)

• Economy (Rogan: job, food)

• China (Friedman: relative deprivation)

• Networks?

Roots and Wings, Net and Jets

Understanding TE Through A Network Lens

Wenhong Chen 陈文泓

Dept. of Radio‐TV‐Film Population Research CenterUniversity of Texas Austin

加中政府机构,社区团体,媒体如何促进移民创业?移民创业者怎样运用跨国网络获取资源?

跨国企业家怎样使用新技术在知识经济中立于不败之地?

您是创业者吗? 我们邀请您参与

移民跨国企业研究项目

Prof. Barry Wellman/卫百威Wenhong Chen/陈文泓

[email protected]

Transnational Immigrant Entrepreneurship Project

University of Toronto

CanadaSocial Sciences and HumanitiesResearch Council of Canada

Funded by

Publications• Chen, Wenhong and Justin Tan. “Roots and Wings: Glocalized Networks and

Transnational Entrepreneurship.” IDEA Award, Entrepreneurship Division, Academy of Management, Under review

• Chen, Wenhong and Justin Tan. “Understanding Transnational Entrepreneurship through a Network Lens.” 2009. Entrepreneurship Theory & Practice 33: (5) 1079‐1091.

• Chen, Wenhong and Barry Wellman. “Net and Jet: The Internet Use, Travel and Social Networks of Chinese Canadian Entrepreneurs.” 2009. Information, Communication & Society 12: (4) 525‐547.

• Chen, Wenhong. 2006. “The Impact of Internet Use on Transnational Entrepreneurship ‐ the Case of Chinese Immigrants to Canada.” Pp. 197‐220 in New Technologies in Global Societies, edited by P. Law, L. Fortunati, and S. Yang. World Scientific Press.

• Chen, Wenhong and Barry Wellman. 2007. Doing Business at Home and Away. Canada in Asia Series, Asia Pacific Foundation of Canada. 30 pp.

• Chen, Wenhong and Barry Wellman. 2006. “Engaging the Dragon by Riding the Transnational Tide.”Horizons 9: (2) 40‐44, Journal of the Canadian Government’s Policy Research Initiative.

Roadmap

Now we would like to learn more about your social relations. Entrepreneurs often have to deal with people in different occupations. Here we have a list of occupations.

22.1. Do you personally know someone who does any of the following jobs in your country of origin? (If your country of origin is Canada, please write “NA” in the column of “In your country of origin”)

22.2. Do you personally know someone who does any of the following jobs in Canada?

*Personally know = More than just casual acquaintances

22.2a. If you know someone in the following occupations in Canada, what ethnicity is this person?

(If you know more than one person in the following occupations, think of the one whom you have known best.)

1) Chinese 2) White or Caucasian 3) Asian (other than Chinese) 4) Black or African Canadian 5) Hispanic or Latino/Latina 6) Native/First Nations 7) Other Ethnicity

In your country of

origin

In Canada Now, let’s begin with the first occupation…

No Yes No Yes

In Canada, what ethnicity is this person?

22.1-2a Government official 2 1 2 1 # 22.3-4a Community association leader/activist 2 1 2 1 # 22.5-6a Academic/professor 2 1 2 1 # 22.7-8a Venture capitalist 2 1 2 1 # 22.9-10a Bank loan officer 2 1 2 1 # 22.11-12a Lawyer 2 1 2 1 # 22.13-14a Accountant 2 1 2 1 # 22.15-16a IT engineer/computer programmer 2 1 2 1 # 22.17-18a Journalist/editor in media 2 1 2 1 # 22.19-20a Sales or marketing manager 2 1 2 1 # 22.21-22a Human resources manager 2 1 2 1 # 22.23-24a Entrepreneur/small business owner 2 1 2 1 # 22.25-26a School teacher 2 1 2 1 # 22.27-28a Physician or other health worker 2 1 2 1 # 22.29-30a Truck driver 2 1 2 1 # 22.31-32a Electrician 2 1 2 1 # 22.33-34a Waiter or waitress 2 1 2 1 # 22.35-36a Policeman or policewoman 2 1 2 1 #

Framework: TE & Networks

Research Design & Data Results and Discussion

Definitions & Motivations

Definitions & MotivationsTransnational Entrepreneur/Transnational Entrepreneurship• Ethnic entrepreneur whose business success depends on contacts and associates in the

home country or a third country (Portes, Haller and Guarnizo 2002)• Transnational entrepreneurs: Immigrant entrepreneurs who conduct border‐crossing

business activities.• Transnational entrepreneurship: The process in which immigrant entrepreneurs discover

and enact on business opportunities across national borders• A significant proportion of ethnic entrepreneurs participate in TE

– Half of Indian and Chinese immigrant entrepreneurs in Silicon Valley “have set up subsidiaries, joint ventures, subcontracting, or other business operations in their native countries” (Saxenian et al. 2002: 37).

– Close to 60% of Latino immigrant entrepreneurs in the U.S. are transnational (Portes et al. 2002)

Practical Impact• Immigrants are a large, growing, and dynamic source of entrepreneurship.• Immigrant settlement in the host country • Socioeconomic development in the home country• International trade and investment (Gould 1994; Light et al. 2002; Chen & Wellman 2006)

YouTube’s Steve Chen & Jawed Karim

Google’ Sergey Brin Isaac Larian, MGA (Micro Games of America)

Conventional Wisdom Location Concentrated in ethnic neighborhoods

Industry Niches abandoned by mainstream firms

Market Co‐ethnic

Labor Ruthless exploitation of co‐ethnic labor

Size Small

Profit Thin, price competition, high turnover

Mobility A lifeboat for survival but overloaded with disadvantages

A Multidisciplinary Strategic Research Site

Transnational Entrepreneurship

Individual & Firm Level Characteristics • tech use • SES/immigration experience• industry• firm age and size

Networks

• glocalization

• ethnic diversity

Contexts• globalization and technological transformation• institutions and policies• the ethnic community

TE

Breaking into Mainstream

micro

meso

macro

Contexts and Players in the Transnational Field

Community &Business Associations

ReceivingState

Entrepreneurs

Ethnic Media

Sending State

Receiving Country Economy

Sending Country Economy

Ethnic Community/Economy

The Transnational Field

Transnational

Domestic

Contexts and Players in the Transnational Field

• From Head Tax to the Point System: Canada’s immigration policy has changed “A Chinaman’s Chance”

• A fast‐growing Chinese Canadian population– 21% of immigrants to Canada from 1990 to

2004 were Chinese– considerable socioeconomic resources– geographic concentration in MTV– conducive conditions for ethnic

entrepreneurship: proliferated in number and diversified in terms of industry and location (Fong, Chen and Luk 2007)

I cannot stand here if Chinese don’t migrate to Canada. (John, Interviewee #43)

I cannot stand here if Chinese don’t migrate to Canada. (John, Interviewee #43)

Ten years ago, you could only wash dishes in Chinese restaurants and work your way up to be a small business owner. Now, you come to Canada and a growing market in China backs you up. (Elton, Interviewee #41)

Ten years ago, you could only wash dishes in Chinese restaurants and work your way up to be a small business owner. Now, you come to Canada and a growing market in China backs you up. (Elton, Interviewee #41)

China Opens Up

• The reform policies and market transition since 1978 (Nee 1992; Bian and Logan 1996; Walder 1996)

• Capitalizing on resources in the Chinese diaspora has become China’s nationalproject

We place an unprecedented expectation on the elite of the Chinese people - Overseas Chinese -to strengthen the nation. (Yang, Interviewee #7)

We place an unprecedented expectation on the elite of the Chinese people - Overseas Chinese -to strengthen the nation. (Yang, Interviewee #7)

The rise of China has changed the dynamics of entrepreneurship in the Chinese Diaspora.

Figure 4.1: Chinese Immigrant Business Forum To Return, To Stay, Or Go-between at North York Community Centre, Toronto

Figure 4.2: Seminar on Transnational Entrepreneurship Organized by the Chinese Canadian Association of Invention and Technology Transfer at the Hart House, University of Toronto

Figure 4.1: Overseas Chinese Scholar Business Delegation Visiting the Zhongguancun Science Park

Figure 4.2: Overseas Chinese Scholar Business Delegation at a Project Promotion Fair in the Zhongguancun Science Park

A successful business depends on favorable climatic, geographic, and human conditions. What are the favorable climatic conditions? Now the [Chinese] government has policies that encourage returnee entrepreneurship...What are the favorable geographic conditions? Our business is located both in Canada and in China. What are the favorable human conditions? Our networks. (Alvin, Interviewee #34)“You must have connections. Connections help your business succeed”.

“Without networks, I would have no work”.

“How high you can fly relies on how far your networks can reach”.

A successful business depends on favorable climatic, geographic, and human conditions. What are the favorable climatic conditions? Now the [Chinese] government has policies that encourage returnee entrepreneurship...What are the favorable geographic conditions? Our business is located both in Canada and in China. What are the favorable human conditions? Our networks. (Alvin, Interviewee #34)“You must have connections. Connections help your business succeed”.

“Without networks, I would have no work”.

“How high you can fly relies on how far your networks can reach”.

International Migration through a Network Lens

Ethnic Enclaves/Institutional Completeness

Vertical Mosaic/Segmented Assimilation(Porter 1965; Portes and Zhou 1993)

(Breton 1964; Portes and Sensenbrenner 1993; Tilly 1998)

Chain Migration(MacDonald and MacDonald 1964; Massey et al. 2001)

Networks

Supply

Demand

Embeddedness

Structure

AgencyRelevance

• Network matters (Granovetter; Lin; Aldrich & Zimmer).

A more challenging question (Erickson 2004; Castilla et al. 2000; Boyd 1989; Massey et al. 1994; Gold 2005).

• How and under what circumstances does network matter? • Glocalized networks and Ethnic diverse networks

An equally important but less answered question• How are social networks formed and maintained?

Transnationalism, Networks & Technologies

• Frequently mentioned, rarely researched – The use of new technologies as the key feature that distinguishes historical and contemporary transnational practices (Portes et al.; Levitt; Vertovec )• Technological determinism? (Waldinger & Fitzgerald 2004)

– Social networks as the foundation of the transnational social field

• Lack of refined network measurements

Individual & Firm Level Characteristics • tech use • SES/immigration experience• industry• firm age and size

Networks

• glocalization

• ethnic diversity

Contexts• globalization and technological transformation• institutions• the ethnic community

TE

Breaking into Mainstream

micro

meso

macro

Research Questions

1. How do glocalized networks affect TE?

2. How do technologies related to glocalized networks and ethnic diversity of networks?

3. How do glocalized networks and ethnic diversity affect breaking into the mainstream market?

• Research sites– Toronto: a global city with a well‐developed

Chinese ethnic economy– Beijing

• Zhongguancun: China’s Silicon Valley

• Mixed method (2002‐2006)– 34 participant observations– 67 in‐depth interviews

– A random sample f2f survey of 308entrepreneurs in Toronto

The Transnational Immigrant Entrepreneurship (TIE) Study

Participant Observations34 business and community events in Toronto and Beijing

Interview guideline• How are social networks perceived, cultivated, explored, and changed in the process of entrepreneurship? (Q13‐17, Q37)

• How do entrepreneurs use new communication technologies to engage in entrepreneurship? (Q11‐12, Q17)

• Why and how do ethnic Chinese participate in (transnational) entrepreneurship? What are the obstacles and challenges of (transnational) entrepreneurship and solutions? (Q7‐10)

The TIE Survey

• Sampling

– 2004/2005 business census issued by municipal governments (the City of Toronto and the York Region) a total of 70,000 + businesses

– Identified about 5000 ethnic Chinese businesses

– Randomly selected 800 ethnic Chinese entrepreneurs

• 308 questionnaires completed face‐to‐face in 2005‐2006

• Questionnaire

– Social networks measured by 3 methods (NG, PG, summation)

– Participation in 11 types of associations

– Use of new technologies (Internet & mobile phone)

• The frequency of 13 types of Internet activities

– Cultural capital and media consumption

– Business startup, operation and performance

ego

GSS Name Generator

ego

Position Generator

• The Name Generator core discussion networks – an artificial limit ; GSS: 5 alters, discussed important matters– small, strong tie centered, dense, & homogeneous (Marsden 1987)

• The Position Generator the broader networks – Simple: measure social network through a list of occupations sampled from a full

list of all occupations– Powerful: link individuals with social structure based on occupational stratification – Flexible: can be adapted to the specific group under research– more effective in capturing weak ties (Lin and Erickson 2008; Erickson 2004)

Adapted from James Moody and Nan Lin

The Name Generator adapted from the Panel Study of Entrepreneurial Dynamics (PSED) (Gartner et al. 2004)

9

25. Please tell me the names of THREE of your team members. If you have more than 3 team members, think of the three most important team members. Please give me only their FIRST names, so that we can talk about them without revealing their identity.

Team Member Name Function at the time of founding

25.11-12 TM1 25.21-22 TM2

25.31-32 TM3

26. Entrepreneurs often need a little help from family members, friends, coworkers, neighbors, acquaintances, or even strangers. Now, think about PEOPLE (NOT INCLUDING YOURSELF) who HELPED YOU to establish your current business. Please give me only their FIRST names, so that we can talk about them without revealing their identity. [Interviewer: if the same name is mentioned twice or more times, ask if the respondent is referring to the same person or not. If different, add a number to the first name, such as Jim1 and Jim2.]

[Interviewer: if the participant comes up with a name in Scenario A, then go to the next question. If not, ask Scenario B]

Name Scenario A: Please think of one person who provided …

Scenario B: If you did not receive such help yet, when you need this help, who do you think will be the person that is most likely to provide … Scenario A Scenario B

H1: Introductions to people who are useful to your business H1 H1 26.11-12

H2: Business related information or advice H2 H2 26.21-22 H3: Training in business related tasks or skills H3 H3 26.31-32 H4: Financial assistance (like investment, equity, loans, or loan guarantees) H4 H4 26.41-42 H5: Physical resources, use of land, space, buildings or equipment H5 H5 26.51-52 H6: Business services (such as legal, accounting, or clerical assistance) H6 H6 26.61-62 H7: Personal services, such as household help or childcare H7 H7 26.71-72 H8: With whom you discussed important matters in the past six months H8 H8 26.81-82 H9: Anyone you haven’t mentioned but who is particular helpful to your business. Please explain what service or assistance does this person provide to your business: _______________________________________________________ (26.91a)

H9

26.91

The Name Generator: Name Interpretation QuestionsWHAT IS

THEIR GENDER?

WHAT IS THEIR ETHNICITY?

WHAT IS THEIR EDUCATION AND OCCUPATION?

WHAT IS THEIR CURRENT PLACE OF RESIDENCE?

HOW MANY TIMES PER MONTH

DO YOU COMMUNICATE WITH THIS PERSON…

HOW DID YOU FIRST MEET

THIS PERSON?

Face to Face? #______ per month

By Mobile Phone? #______

per month By Landline

Phone? #______ per month

By Email? #______ per month

H 1

1 F

2 M

1 Chinese 2 White or Caucasian 3 Asian (not Chinese) 4 Black or African Canadian 5 Hispanic or Latino/Latina 6 Native/First Nations 7 Other Ethnicity

_________________ Education

_________________ Occupation

______________ City

______________ Country By Instant

Messaging? #______ per month

1 We are family members or relatives 2 In school 3 At work 4 As neighbours 5 In an association, club or group 6 Introduced by a common third friend 7 Introduced by a family member/relative 8 On the Internet 9 Other …

Please specify:______________________






H 2

1 F

2 M


_________________ Education

_________________ Occupation

______________ City

______________ Country By Instant

Messaging? #______ per month


Please specify:______________________





H 3

1 F

2 M


_________________ Education

_________________ Occupation

______________ City

______________ Country



Please specify:______________________

• The TIE survey

–18 occupations

–In the host country and in the home country, respectively

–Ethnic composition

Now we would like to learn more about your social relations. Entrepreneurs often have to deal with people in different occupations. Here we have a list of occupations.

22.1. Do you personally know someone who does any of the following jobs in your country of origin? (If your country of origin is Canada, please write “NA” in the column of “In your country of origin”)

22.2. Do you personally know someone who does any of the following jobs in Canada?

*Personally know = More than just casual acquaintances

22.2a. If you know someone in the following occupations in Canada, what ethnicity is this person?

(If you know more than one person in the following occupations, think of the one whom you have known best.)

1) Chinese 2) White or Caucasian 3) Asian (other than Chinese) 4) Black or African Canadian 5) Hispanic or Latino/Latina 6) Native/First Nations 7) Other Ethnicity

In your country of

origin

In Canada Now, let’s begin with the first occupation…

No Yes No Yes

In Canada, what ethnicity is this person?

22.1-2a Government official 2 1 2 1 # 22.3-4a Community association leader/activist 2 1 2 1 # 22.5-6a Academic/professor 2 1 2 1 # 22.7-8a Venture capitalist 2 1 2 1 # 22.9-10a Bank loan officer 2 1 2 1 # 22.11-12a Lawyer 2 1 2 1 # 22.13-14a Accountant 2 1 2 1 # 22.15-16a IT engineer/computer programmer 2 1 2 1 # 22.17-18a Journalist/editor in media 2 1 2 1 # 22.19-20a Sales or marketing manager 2 1 2 1 # 22.21-22a Human resources manager 2 1 2 1 # 22.23-24a Entrepreneur/small business owner 2 1 2 1 # 22.25-26a School teacher 2 1 2 1 # 22.27-28a Physician or other health worker 2 1 2 1 # 22.29-30a Truck driver 2 1 2 1 # 22.31-32a Electrician 2 1 2 1 # 22.33-34a Waiter or waitress 2 1 2 1 # 22.35-36a Policeman or policewoman 2 1 2 1 #

Research Questions

1. How do glocalized network matter?

2. How do technologies related to glocalized networks and ethnic diversity of networks?

3. How do glocalized networks and ethnic diversity affect breaking out?

Roots and WingsGlocalized Networks and TE

• Relational embeddedness: strong vs. weak ties (Granovetter)• Structural embeddedness: network closure vs. brokerage (Burt) • Geographic embeddedness: glocalized networks (Wellman)

Local Networks: Homogenous, dense, & geographically clustered

• The ecological opportunity (Simmel 1908; Festinger et al.1950; Gans 1962; Blau 1977; Saxenian 1994).

• Networks tend to be local– Foci (Feld 1982): 2/3 within 1 hour’s drive (Boase 2006) /

2/3 contacts of Silicon Valley entrepreneurs are located in Silicon Valley (Yoo 2003)

– Co‐location (Baum & Sorensen 2004)• It takes f2f communication embedded in local ties to

obtain valuable resources for entrepreneurship (Sorenson 2003).

Glocalized Networks: local & global connections

• The geographic dispersion of diasporic communities facilitated cross‐border business activities (Weber 1905; Simmel 1908).

• The small world experiment (Milgram 1967)• The networks of VC firms “provide the mechanism for the erosion of geographic …boundaries” (Sorenson & Stuart 2001:1584).

Geographic Embeddedness: Glocalized Networks

Discover Opportunities

Enact on Opportunities

Strength Weakness Contingency

Strong Ties

•Strength of strong ties (Uzzi 1996; Bian1997)

• Redundant information

• Isolation

• Legitimacy discount

•Different strokes from different folks (Wellman & Wortley 1990)

•An optimal mixture of strong and weak ties (Uzzi 1996)

•No significant differences between kin and non‐kin ties (Renzulli & Aldrich 2005)

Weak Ties

•Strength of weak ties (Granovetter 1973)

• Not all weak ties bring new information (Burt 1992).

Relational Embeddedness: Strong Ties vs. Weak Ties

H2a: Weak ties are positively related to transnational entrepreneurship. H2b: Strong ties are positively related to transnational entrepreneurship.

Strength Weakness

Closure •“Social closure” (Weber 1968)

•Reinforces trust, solidarity, and obligations and encourages collaborations (Granovetter 1985; Coleman 1988)

• Lock in

• Conformity

• Overburden (Portes & Sensenbrenner 1993)

Brokerage •Structural hole theory (Burt 1992)

• information and control benefits

• rich entrepreneurial opportunities•At the frontiers of two or more markets, brokers synthesize ideas and practices across borders of nation states.

Structural Embeddedness: Brokerage vs. Closure

H3a: Brokerage is positively related to transnational entrepreneurship.H3b: Closure is negatively related to transnational entrepreneurship.

Dependant Variables

47% involves at least one form of transnational entrepreneurshipMultidimensional and great variations across the dimensions

Glocalized Networks

The Position Generator The Name Generator

39

TABLE 3 Logistic Regression Results for the Likelihood of Four Forms of Participating in Transnational Entrepreneurship,

Glocalization Measured by the Proportion of Global Ties

Coef. Std. Err. P>|z| Coef. Std. Err. P>|z| Coef. Std. Err. P>|z| Coef. Std. Err. P>|z|% of Global Ties 3.32 1.16 ** 2.29 1.09 * 3.31 1.12 ** 1.93 0.98 *Brokerage 1.46 0.33 *** 1.78 0.43 *** 1.21 0.63 † 1.08 0.44 *Network Density 0.14 0.14 0.03 0.18 -0.38 0.23 † -0.02 0.18% of Weak Ties 1.09 0.79 -0.89 0.88 2.56 1.52 † 0.51 1.00Network Size 0.14 0.08 † 0.00 0.10 0.11 0.12 0.14 0.10Embedded Resources (Mean Education) 0.09 0.27 0.40 0.32 0.01 0.42 0.51 0.34Gender 0.01 0.42 0.68 0.47 0.74 0.60 -0.17 0.54Partnered 0.28 0.48 0.87 0.68 0.85 0.86 0.31 0.59Human capital (Education) 0.15 0.18 -0.14 0.22 0.18 0.27 0.31 0.22Business class immigrant 1.27 0.52 * 0.73 0.52 0.93 0.72 0.57 0.57Length of Residence 0.01 0.02 -0.02 0.02 0.00 0.03 -0.01 0.02Manufacturing 1.67 0.54 ** 0.92 0.67 -0.14 0.81 0.04 0.70Wholesale 2.11 0.50 *** 3.64 0.58 *** 0.58 0.64 1.57 0.51 **Retail -0.04 0.37 1.43 0.50 ** -0.72 0.67 0.35 0.49New Venture -0.42 0.43 -0.16 0.50 0.56 0.61 -0.05 0.50_cons -4.88 1.48 *** -4.86 1.79 ** -6.71 2.70 * -6.94 2.06 ***Log likelihood -133.39 -98.95 -64.58 -97.71R2 0.29 0.35 0.21 0.19

Success Depended on Overseas Connections

Import Intensity Export Intensity Overseas Employees

N=276; *** P<0.001; ** P<0.01; * P <0.05; † P<0.1

TABLE 4 Logistic Regression Results for the Likelihood of Four Forms of Participating in Transnational Entrepreneurship

Glocalization Measured by IQV

Coef. Std. Err. P>|z| Coef. Std. Err. P>|z| Coef. Std. Err. P>|z| Coef. Std. Err. P>|z|Glocalization IQV 1.17 0.53 * 1.19 0.56 * 1.65 0.65 * 0.96 0.54 †

Brokerage 1.48 0.33 *** 1.63 0.42 *** 1.19 0.61 † 1.08 0.44 *

Network Density 0.13 0.14 0.10 0.18 -0.41 0.22 † -0.02 0.18

Tie Strength IQV -1.19 0.43 ** -0.41 0.51 -0.86 0.68 -0.36 0.52

Network Size 0.17 0.08 * 0.00 0.10 0.05 0.12 0.12 0.10

Embedded Resources (Mean Education) 0.09 0.26 0.23 0.31 0.02 0.40 0.47 0.33

Gender -0.02 0.42 0.78 0.47 † 0.68 0.60 -0.19 0.54

Partnered 0.44 0.49 0.98 0.68 0.85 0.84 0.34 0.59

Human capital (Education) 0.19 0.18 -0.04 0.22 0.33 0.27 0.39 0.22 †

Business class immigrant 1.45 0.54 ** 0.85 0.52 † 0.97 0.69 0.61 0.56

Length of Residence 0.01 0.02 -0.02 0.02 0.01 0.03 0.00 0.02

Manufacturing 1.90 0.54 *** 1.11 0.65 † 0.33 0.78 0.31 0.68

Wholesale 2.09 0.50 *** 3.62 0.58 *** 0.55 0.62 1.58 0.51 **

Retail -0.06 0.37 1.41 0.50 ** -0.76 0.67 0.35 0.49

New Venture -0.31 0.42 -0.14 0.50 0.78 0.61 0.05 0.51

_cons -4.01 1.34 ** -5.39 1.75 ** -4.70 2.24 * -6.61 1.92 ***

Log likelihood -132.95 -98.94 -66.48 -97.98R2 0.29 0.35 0.18 0.19



N=276; *** P<0.001; ** P<0.01; * P <0.05; † P<0.1

TABLE 5 Logistic Regression Results for the Likelihood of Four Forms of Participating in Transnational Entrepreneurship,

Glocalization Measured by the Number of Global and Local Ties

Coef. Std. Err. P>|z| Coef. Std. Err. P>|z| Coef. Std. Err. P>|z| Coef. Std. Err. P>|zNumber of Global Ties 0.72 0.27 ** 0.71 0.26 ** 0.56 0.25 * 0.44 0.22 *Number of Local Ties 0.08 0.08 -0.12 0.10 -0.03 0.12 0.06 0.10Brokerage 1.49 0.32 *** 1.67 0.42 *** 1.24 0.60 * 1.15 0.44 **Network Density 0.06 0.14 0.04 0.18 -0.42 0.22 † -0.05 0.17Embedded Resources (Mean Education) 0.17 0.26 0.27 0.31 0.16 0.41 0.54 0.33 †Gender -0.12 0.40 0.75 0.47 0.58 0.59 -0.23 0.54Partnered 0.27 0.47 1.03 0.69 0.68 0.82 0.29 0.58Human capital (Education) 0.14 0.18 -0.08 0.22 0.20 0.27 0.31 0.22Business class immigrant 1.15 0.50 * 0.76 0.51 0.73 0.69 0.54 0.55Length of Residence 0.01 0.02 -0.02 0.02 0.01 0.03 0.00 0.02Manufacturing 1.72 0.54 *** 0.91 0.68 0.10 0.78 0.15 0.69Wholesale 2.01 0.49 *** 3.66 0.58 *** 0.45 0.63 1.55 0.51 **Retail -0.05 0.36 1.48 0.50 ** -0.62 0.65 0.37 0.49New Venture -0.24 0.42 -0.04 0.51 0.79 0.61 0.05 0.51_cons -3.85 1.31 ** -5.17 1.75 ** -4.46 2.22 * -6.34 1.89 ***Log likelihood -136.42 -96.27 -67.15 -98.62R2 0.28 0.37 0.18 0.19



N=277; *** P<0.001; ** P<0.01; * P <0.05; † P<0.1

Summary of Survey Results

H1{H2 {H3 {


Import Intensity

Export Intensity

Overseas Employees

% of Global Ties (+) (+) (+) (+)Glocalization IQV (+) (+) (+)Number of Global Ties (+) (+) (+) (+)Number of Local Ties % of Weak TiesTie Strength IQV (-)Brokerage (+) (+) (+)Network Density Embedded Resources (Mean Education)Network SizeGenderPartnered Human capital (Education)Business class immigrantLength of ResidenceManufacturing (+)Wholesale (+) (+) (+)Retail (+)New Venture

*** P<0.001; ** P<0.01; * P <0.05

Glocalization

Brokerage

Closure

TE

Weak Ties

H1 +

H2

H3a +

H3b

Hypotheses

Conclusions: Glocalized Networks

0.0

5.1

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0 .2 .4 .6 .8 1Glocalization IQV

No YesBrokerage

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.3.4

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No YesBrokerage

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5.2

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No YesBrokerage

• Strong support for the glocalization hypothesis.

• A robust positive relation of brokerage and transnational entrepreneurship.

Net and JetThe Internet Use, Travel and Social Networks of TEs

Net, Jet and Glocalized Networks

• The Internet facilitates interactions transcending geographic boundaries.

– The Internet helps movers to maintain or even increase communication with network contacts at a distance (Hampton and Wellman 1999; Hampton 2001).

– The Internet fosters immigrants to have stronger and richer connections with home countries (Miller and Slater 2000).

– The Internet enhances entrepreneurial firms’ capability of connecting with potential partners in the international market (Arenius et al. 2006).

• Social networks remain conditioned by geographic distance even in the Internet era. – People still make connections within

local settings defined by geographic, organizational, or ethnic boundaries (Calhoun 1998; Kossinets and Watts 2006).

• The Internet supplements f2f interaction.

– Computer‐mediated communication lacks social cues and only allows a narrow time window of synchronous interaction (Gibson and Gibbs 2006).

– the “human moment” (Hallowell 1999).

Net, Jet, and Ethnic Boundary• Homophily

– Ascribed or achieved attributes / ethnicity (McPherson et al. 2001) – Cross‐group ties allow access to better resources – Agency & Investment

• The ethnic diversity of immigrants’ networks only increases substantially after 6 years in the host country (Breton 1964)

• Net and jet cross social boundaries?– Little research and no consensus– The Internet allows people to meet people of diverse ethnic and

cultural backgrounds online (Wellman & Gulia 1999) – A new kind homophily may emerge as people have greater opportunity

to find like‐minded people online (McPherson et al. 2001). • Koreans and Chinese immigrants make friends on the Internet mostly with co‐ethnics (Matei & Ball‐Rokeach 2002).

The Ethnic Composition of Networks

The Position Generator The Name Generator N Mean S.D. N Mean S.D.

Size 308 16 9 288 5 2Glocalization

% of Global Ties 308 27 21 288 8 17Ethnic Composition

% White 308 30 27 289 17 24% Non‐Chinese Visible Minority 308 5 12 289 5 12

Embedded Resources Occupational Diversity 308 13 7 ‐‐‐ ‐‐‐ ‐‐‐Mean Education ‐‐‐ ‐‐‐ ‐‐‐ 282 4 0.7

Relation Diversity % of Non‐Kin Ties ‐‐‐ ‐‐‐ ‐‐‐ 288 76 25

• Co-ethnic dominance with significant interethnic connections• A core-periphery pattern of ethnic interaction

Tech Use

96% 95% 92%

58%

89%80% 79%

31%

00.10.20.30.40.50.60.70.80.91

Mobile Phone Personal Computer

Internet Business Website

% of Using or Having…

T.E.

D.E.

13 14

9 11 11

7

0

5

10

15

Mobile Phone Personal Computer Internet

Years of Using…

T.E.

D.E.

Variable Mean Std. Dev. Min MaxInternet UseInternet User 0.84 0.36 0 1Years of Internet Use 7.91 5.06 0 24Variety of Internet Activities 4.26 3.19 0 10Travel 0.53 0.93 0 3Control Variables Female 0.21 0.41 0 1Partnered 0.87 0.33 0 1Length of Residence 22.95 11.23 1 53Square Root Length 4.63 1.24 1 7.28Education (Graduate as Reference Group)High School or Less 0.25 0.43 0 1University 0.59 0.49 0 1Young firms 0.21 0.41 0 1Industry (Service as Reference Group)Manufacturing 0.11 0.31 0 1Wholesale 0.15 0.36 0 1Retail 0.34 0.48 0 1

N=308

Table 2 Robust Regression Results of Glocalized Networks Measured by the Position Generator

# of Local Ties # of Global Ties % of Global Ties Coef. Std. Err. P>|t| Coef. Std. Err. P>|t| Coef. Std. Err. P>|t|

Female -0.66 0.63 -1.01 0.71 -0.02 0.03 Partnered 1.60 0.76 ** 1.34 0.86 0.04 0.03 Length of Residence -0.15 0.15 -0.15 0.17 -0.01 0.01 Square Root Length 1.64 1.36 -0.43 1.54 0.01 0.06 Education (Graduate as Reference Group) High School or Less -0.57 0.91 -0.73 1.03 0.01 0.04 University 0.46 0.72 -0.50 0.81 0.00 0.03 Young firms -1.53 0.73 ** -1.05 0.82 -0.03 0.03 Industry (Service as Reference Group) Manufacturing -1.06 0.86 -1.17 0.97 0.00 0.04 Wholesale 0.15 0.79 0.50 0.90 0.00 0.03 Retail -0.27 0.61 -0.51 0.69 -0.01 0.03 Use Internet 1.31 1.01 -1.72 1.15 -0.07 0.04 Years of Internet Use 0.02 0.07 0.08 0.08 0.00 0.00 Variety of Internet Activities 0.45 0.10 *** 0.48 0.12 *** 0.01 0.00 * Travel 0.58 0.30 † 1.01 0.34 ** 0.03 0.01 * _cons 2.30 3.30 8.87 3.73 * 0.44 0.15 ** Adjusted R2 0.20 0.30 0.27

N=308 *** P<0.001; ** P<0.01; * P <0.05; † P<0.1

• The Internet is instrumental for immigrant entrepreneurs • creating new ties in the host country. • maintaining and enhancing old ties in the home country.

• Even we are not physically there, we are virtually there (Taylor, Interviewee #63)

Table 3 Regression Results of Glocalized Networks Measured by the Name Generator

# of Local Ties a # of Global Ties b % of Global Ties b Coef. Std. Err. P>|t| Coef. Std. Err. P>|t| Coef. Std. Err. P>|t|

Female -0.34 0.31 -0.43 0.60 -0.31 0.38 Partnered 0.66 0.36 † -0.32 0.57 -0.26 0.32 Length of Residence -0.03 0.07 -0.30 0.16 † -0.18 0.08 * Square Root Length 0.30 0.65 2.44 1.58 1.53 0.78 * Education (Graduate as Reference Group) High School or Less 0.83 0.44 † -0.08 0.77 -0.72 0.48 University 1.26 0.35 *** -0.45 0.66 -0.96 0.43 * Young firms -0.04 0.34 -0.78 0.87 -0.05 0.52 Industry (Service as Reference Group) Manufacturing 0.31 0.41 0.37 0.62 0.92 0.37 * Wholesale 0.01 0.38 1.28 0.73 † 0.50 0.38 Retail 0.08 0.30 -0.07 0.49 0.13 0.35 Use Internet -0.02 0.48 0.61 0.86 0.58 0.44 Years of Internet Use -0.01 0.04 -0.09 0.06 -0.05 0.03 Variety of Internet Activities 0.18 0.05 *** 0.06 0.08 -0.01 0.05 Travel -0.12 0.14 1.16 0.48 * 0.48 0.12 *** _cons 1.45 1.59 -5.25 3.85 -5.32 1.84 ** Adjusted R2 0.07 0.13 0.15

N=288 *** P<0.001; ** P<0.01; * P <0.05; † P<0.1 a: Robust Regression; b: Generalized Linear Model

Table 4 Robust Regression Results of Ethnic Diversity

% of White Ties

(Measured by the Position Generator) % of White Ties

(Measured by the Name Generator) Coef. S.E. P>|t| Coef. S.E. P>|t|

Female -0.02 0.04 -0.02 0.02 Partnered 0.06 0.04 0.11 0.03 *** Length of Residence 0.02 0.01 ** 0.00 0.01 Square Root Length -0.12 0.08 0.05 0.05 Education (Graduate as Reference Group) High School or Less -0.12 0.05 * -0.04 0.04 University -0.06 0.04 0.04 0.03 Young firms 0.01 0.04 0.00 0.03 Industry (Service as Reference Group) Manufacturing -0.01 0.05 0.08 0.03 * Wholesale 0.00 0.05 0.01 0.03 Retail 0.00 0.04 -0.01 0.02 Use Internet 0.04 0.06 -0.03 0.04 Years of Internet Use 0.00 0.00 0.01 0.00 * Variety of Internet Activities 0.01 0.01 0.00 0.00 Travel 0.01 0.02 -0.02 0.01 † _cons 0.23 0.19 -0.23 0.13 † Adjusted R2 0.19 0.18 N 308 289

*** P<0.001; ** P<0.01; * P <0.05; † P<0.1

• For the broad networks, neither net nor jet has significant impact on the proportion of white ties.

• For the core networks, the years of Internet use is positively and business travel abroad is negatively related to the proportion of white ties.

Conclusions: Net and Jet I

• Generally speaking, tech connectivity contributes to social connectivity. – The use of new communication and transportation technologies is positively

related to larger networks, locally and globally.

• Yet, distance is neither “dead” nor “trivialized” in the age of net and jet. – The great majority of network contacts are local and co‐ethnic, although a non‐

trivial proportion of network contacts are global and interethnic.

• The Internet alone is not sufficient for cultivating glocalized networks.– The Internet helps overcome geographic distance in the broad networks but has

little impact on that in the core networks. – Air miles are a good indicator of network miles: travel helps to cross geographic

boundaries in both broad and core networks.

Geographic Boundary Ethnic Boundary

Broad Networks Core Networks Broad Networks Core Networks Net + NS NS + Jet + + NS -

Jet and Glocalized Networks

I found four of my joint venture partners on the Internet and the other half were recommended by friends…People ask me how I can trust someone who I have never met in person. Online contact is just the first step. You will have a lot communication through email. Yet, the most critical step is that you must sit down together face to face. Then you must travel to China, meet him in person, and listen to his idea. (Taylor, Interviewee #63)

I found four of my joint venture partners on the Internet and the other half were recommended by friends…People ask me how I can trust someone who I have never met in person. Online contact is just the first step. You will have a lot communication through email. Yet, the most critical step is that you must sit down together face to face. Then you must travel to China, meet him in person, and listen to his idea. (Taylor, Interviewee #63)

I spend about 90% of the time on dining and wining. In China, we say “it is all about pulling guanxi”. (Russell, Interviewee #14)

I spend about 90% of the time on dining and wining. In China, we say “it is all about pulling guanxi”. (Russell, Interviewee #14)

Trust

“Pulling Guanxi” & Reaching Up

Conclusions: Net and Jet II

• Geographic boundaries seem easier to cross than ethnic boundaries. – Neither net nor jet helps to overcome ethnic boundaries in the broad

networks.

• The relation of net, jet, and social networks is contingent on the scope of networks.

Geographic Boundary Ethnic Boundary

Broad Networks Core Networks Broad Networks Core Networks Net + NS NS + Jet + + NS -

Pop Quiz: Can you identify two TEs in this picture?

Beyond ChinatownBreaking Into the Mainstream Market

Conclusion and Contributions

Glocalized networks: a useful tool to understand people on the move.Ethnic diversity of networks facilities integration into the mainstream market. The possibilities and limitations of technologies

Net and Jet are positively related to glocalized networksNeither helps to overcome ethnic boundaries in the broad networksBuilding & maintaining business website

significant to participating in TE.no impacts on breaking into the mainstream market.

A mixed method design allows triangulationRefined network measurements: the position and the name generator captured various aspects of networks

Work in Progress

• Selection bias

• The Chinese uniqueness Comparative studies (Urbano et al. 2011)

• The causal order longitudinal – The qualitative fieldwork suggests a co‐evolution of network and organization

Transnationalism & Economic CrisisNew destinations and directions

• Glocalized networks as bridges of information and knowledge as well as circuits of resources and identity. – Glocalization is not an exclusive

feature of immigrant networks

• Innovation: social & technical

– Creativity + Connectivity• Integration: the (re)production of

social networks/social capital– Bowling alone in the melting pot?

Transnational Entrepreneurship

• Technology

• Demography

• Economy

• China

• Networks!

Thank you

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