Perspectives on Necessity-Driven Immigrant Entrepreneurship: Interactions with Entrepreneurial Ecosystems through the Lens of Dynamic Capabilities

Abstract

This paper explores the interaction between immigrant small and medium-sized enterprises (SMEs) and the entrepreneurial ecosystems of their home and host countries. These SMEs, often established out of necessity due to economic hardship or unemployment, contrast with opportunity-driven ventures that seek to exploit new market prospects. Employing a dynamic capabilities framework, the study investigates how immigrant SMEs identify and mobilize critical resources in unstable environments, and how these resources are dynamically adapted and transformed to meet organizational objectives while responding to ecosystem changes, ultimately cultivating competitive advantages. Interviews were conducted with 25 immigrant entrepreneurs from eight countries, and the interviews took place within their business environments, with native speakers of the interviewees′ home countries present to ensure accuracy and authenticity. The findings highlight that immigrant entrepreneurs effectively leverage resources from both home and host country ecosystems, with human capital being the most essential asset. Additionally, the role of immigrants′ social networks is emphasized as a crucial mechanism for resource acquisition. This study further illustrates the positive contributions of immigrant enterprises to entrepreneurial ecosystems, revealing a co-evolutionary relationship whereby the businesses and ecosystems both mutually evolve. This co-evolution strengthens the resilience and sustainability of immigrant ventures, significantly enhancing their long-term success.