Simultaneous Embeddedness in Immigrant Entrepreneurship: Global Forces Behind Chinese-Owned Nail Salons in New York City

Abstract

This article investigates how global forces influence immigrant entrepreneurship. Research in the United States generally assumes that immigrant enterprises, especially those in the service sector of the urban economy, are largely low-end and highly localized. Our case study of Chinese-owned nail salons in New York City suggests that immigrant enterprises are predominantly transnational, shaped not only by local market conditions in the host country but also by multiple layers of socioeconomic and politico-institutional circumstances in the home country. We build on the ideas of mixed embeddedness and transnationalism to develop an analytic framework of simultaneous embeddedness that underscores the linkage between the local and the global. Using data collected from face-to-face interviews and on-site observations in New York City, as well as archival records of government policies and media reports in both the United States and China, we find that individual characteristics and home country interpersonal networks shape processes of adaptation and business formation in the host country. Moreover, the supply of business labor is influenced by three factors in China: (a) educational attainment among the younger generation, (b) job mismatch in the local labor market, and (c) economic opportunities. Finally, the Chinese government’s entrepreneurship promoting policy and relaxed control over studying abroad and tourism overseas, intertwined with U.S. immigration policy, exacerbate the problem of labor shortage for Chinese-owned nail salons in New York City.

Understanding immigrant entrepreneurship: a home-country entrepreneurial ecosystem perspective

“…The current immigrant entrepreneurship literature has consistently regarded the homecountry social embeddedness to be beneficial to immigrant entrepreneurs (Bagwell, 2018;You and Zhou, 2019). Scholars agreed that immigrant entrepreneurs operate in "two worlds" (Drori et al, 2009(Drori et al, , p. 1004.…”

“…For example, 23% of Japanese immigrant entrepreneurs borrow start-up capital from their home country (Kushnirovich and Heilbrunn, 2008). Governmental and institutional policies in China and India are encouraging immigrants from these two countries to create cross-border businesses (Portes and Yiu, 2013;You and Zhou 2019); home-country political status affects immigrants' business performance too (Brzozowski et al, 2017). Scholars are seeking research findings devoted to home-country standpoints (Van Tubergen, 2005).…”

“…The effects of dual entrepreneurial ecosystems can be conceptualized as a novel framework ( Figure 2) for this study. The framework is supported by dual embeddedness theory and simultaneous embeddedness notions (You and Zhou, 2019;Moghaddam et al, 2018) from social cognitive perspectives. It also maintains consistency with the entrepreneurial ecosystem framework.…”

“…During research of how global driving forces influence Chinese-owned nail salons in New York City, You and Zhou (2019) found that the firms are principally "shaped not only by local market conditions in the host country but also by multiple layers of socioeconomic and politico-institutional circumstances in the home country (p. 166)."…”

“…For practical implications, the paper suggests that immigrant entrepreneurs should not solely focus on host-country business opportunities and entrepreneurial resources. The simultaneous embeddedness (You and Zhou, 2019) within the home-country entrepreneurial ecosystem enables them to interact with their home-country entrepreneurial capital. Furthermore, it is crucial for immigrant entrepreneurs to understand the advantages of dual entrepreneurial ecosystems in achieving their entrepreneurial success.…”