How Do Foreign Entrepreneurs’ Network Structures Influence Venture Performance in an Emerging Market

Abstract

It has been challenging for entrepreneurs to exploit business opportunities outside of the native country borders and establish a business venture. From the social network perspective, we examine how and to what extent foreign entrepreneurs’– the individuals who pursue and exploit business opportunities across international markets – network structural holes do influence the business venture performance. Using survey data from 195 foreign entrepreneurs in China, we found that foreign entrepreneurs’ social network structural holes in and outside the host country positively influence business venture performance. We explored a mechanism of opportunity recognition that mediates the relationships between network structural holes and venture performance. Also, social network diversity acts as a critical boundary condition that amplifies the effect of network structural holes on business venture performance. This study contributes to international entrepreneurship research and provides several implications for business ventures that embark on operating in emerging economies.