Transnational Entrepreneurship: Determinants of Firm Type and Owner Attributions of Success

Abstract

Building on a typology of transnational firm types, developed by Landolt, Autler, and Baires in 1999, we examine whether immigrant attitudes toward the host country and their degree of embeddedness in the home country can predict the specific type of transnational enterprise that an immigrant is likely to begin. We also investigate whether the determinants of success of transnational enterprises vary by firm type. Based on a sample of 1,202 transnational business owners drawn from the Comparative Immigrant Entrepreneurship Project database, our analyses indicate general support for our hypotheses. More specifically, we found that transnational entrepreneurs‘ positive perceptions of host country opportunities and greater embeddedness in home country activities helped predict the specific type of ventures they would undertake. Further, the degree of embeddedness in the home country may influence the determinants of success for these types of firms. Depending on firm type, owners attributed their primary success to either personal characteristics, social support, or to the quality of their products and services.

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