Transnational family networks and ethnic minority business development

Abstract

PurposeThis paper seeks to understand the role played by transnational family networks in ethnic minority business development.Design/methodology/approachThe Vietnamese nail‐care sector is taken as a case study. The research involved interviews with ten owner‐managers and four key informants involved in this industry in London. The analysis draws on concepts of “strong” and “weak” network ties and “mixed embeddedness” to explain why the Vietnamese continue to enter such a competitive sector.FindingsThe results highlight the importance of transnational family networks within all aspects of the business and suggest that these links can sometimes provide a fertile source of new business ideas, but can equally limit innovation. The presence of innovative and well‐educated members within the entrepreneurs' “strong‐tie” network appeared to encourage more successful business development and diversification.Research limitations/implicationsThe research challenges the traditional “strong/weak” ties thesis and suggests that, while it has some general value, in the context of groups from more collectivist societies and with family links overseas, it is necessary to take account of the human and social capital resources of the extended family rather than just those of the individual entrepreneur.Practical implicationsTo maximise the potential of these links it suggests that business advisers need to undertake a comprehensive audit of entrepreneurs' networks and assist them in assessing how their family ties can best contribute to the development of the business.Originality/valueThe paper focuses on a new community (the Vietnamese), and a new sector of study (transnational family networks), both of which have received little attention in the entrepreneurship literature.