Social Ties, Social Capital, and Recruiting Managers in Transnational Ventures

Abstract

Social capital provides access to resources; however, how migrant entrepreneurs use social capital in the recruitment of managers for their transnational ventures is less understood. The authors conducted eight in-depth interviews with transnational entrepreneurs of Indian origin in the United Kingdom and nine confirmatory interviews with managers of their transnational ventures. Findings show that transnational entrepreneurs substitute or complement international and local social capital in the recruitment of managers contingent on whether they (a) live in the United Kingdom or India and (b) use social ties in the United Kingdom or India to recruit managers. Implications for research, policy and management are discussed

The Role of Government Support in Sustainable Competitive Position and Firm Performance

“…Moreover, it is also argued that government support can give an advantage to a firm to access unique resources which are not easily available. The resources, in turn, facilitate ventures to improve their profitability Pruthi and Wright [15]. It is doubtless that a firm having strong political ties enjoys more earning activities as comported to non-affiliated political firms.…”

“…Government support, in such regions is essential to gain a competitive position. For instance, in emerging economies, a majority of valuable resources are possessed by a government Pruthi and Wright [15]. Quality of government can facilitate economic growth of a firm not only by providing tangible public goods such as infrastructure, machinery and other physical resources but also offering financial incentives, cutting transaction costs and quick approval of foreign direct investment [16].…”

Entrepreneurship in Emerging Markets

“…"transnational" entrepreneurs may be able to start their ventures abroad, grow their businesses and then bring them back to the home land (Drori, Honig & Wright, 2009;Pruthi & Wright, 2017 Studies have examined characteristics of returnee entrepreneurs that are related to venture performance in comparison with non-returnee firms (Dai & Liu, 2009;Filatotchev et al, 2009;Liu et al, 2010a), notably showing that returnee owned ventures outperform nonreturnee firms regarding exporting, innovation and employment growth.…”

Political ties and performance of multinational corporations in Vietnamese emerging market

“…Institutional support assists the government's administrative process (Haiyang & Atuahene-Gima, 2001). Adopting the resource-based view, McWilliams et al (2002) and Pruthi and Wright (2017) indicate that ventures which can extract potential resources from political ties can eventually improve their profitability. Often, prior studies separated resources and capabilities.…”