THE IMPACT EVALUATION OF INTERNATIONAL ETHNIC TIES ON INDUSTRIAL COMPANIES’ OPPORTUNITY EXPLOITATION WHEN ENTERING FOREIGN MARKETS

G G Nalbandyan,V H Hovhannisyan

doi:10.17747/2078-8886-2018-4-36-41

Abstract

The effect of international ethnic communities on international opportunity exploitation of Wenzhou industrial SMEs is examined. The following hypotheses are tested: the hypothesis on the connection between international ethnic ties and international opportunity exploitation; the hypothesis on the mitigation of “liability of foreignness” effects through the international ethnic ties; and finally, the hypothesis of the impact on export barriers. Results of the empirical study, in general, support the derived hypotheses.

Highlights

There has been a steady infiltration of new ethnic groups into the Western countries [Guercini S., Milanesi M., Ottati G
This study investigates the effects of international ethnic ties on international opportunity exploitation on the example of Wenzhou community and argues that the potentially beneficial impact of international ethnic relations may lessen the influence of liability of foreignness on the small and medium-sized enterprises (SMEs)
We decided to analyze the linear regression to test the predictive value of the strength of international ethnic ties variable in the degree of SME international opportunity exploitation

Summary

Introduction

There has been a steady infiltration of new ethnic groups into the Western countries [Guercini S., Milanesi M., Ottati G. New ethnic groups serve as new labor forces with new approaches that widen the range of business opportunities. They facilitate trade by connecting their home, host countries, and take on the position of cultural and economic diplomats who help locals to understand business opportunities that are available in the home countries [Butler J. Many researchers have attempted to understand the role of various types of ethnic ties (i.e., business and personal ethnic ties) on opportunity recognition and exploitation [Ma R., Huang Y. This study investigates the effects of international ethnic ties on international opportunity exploitation on the example of Wenzhou community and argues that the potentially beneficial impact of international ethnic relations may lessen the influence of liability of foreignness on the SMEs. the impact on export barriers is examined

Methods

Results

Conclusion