Abstract

This paper examines the influence that immigrant entrepreneurs’ home and host countrydifferences have on their business growth. Building on organizational learning and prospect theory literature, we suggest that: (1) knowledge-related differences have a negative, while (2) economicsrelated differences have a mixed effect on immigrants’ business growth (positive when these are in the favor of host and negative when these are in the favor of home country). Employing social categorization literature, we also contend that these impacts are moderated by (a) naturalization (b) home to host geographical distance, and (c) the size of the immigrant entrepreneur’s diaspora in the host country. We test our theory using a sample of immigrant entrepreneurs operating in the remittances market and our findings are mostly consistent with the predictions.

THE EWING MARION KAUFFMAN EMERGING SCHOLAR AWARD

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