Dual Embeddedness Research Articles

Transnational immigrant entrepreneurship: effects of home-country entrepreneurial ecosystem factors

PurposeThe purpose of this theoretical paper is to explore how immigrants' home-country entrepreneurial ecosystem (EE) factors impact transnational immigrant entrepreneurs (TIEs). The paper draws on the dual embeddedness and transnational entrepreneurship theories to explore how the home-country EE influences transnational immigrant entrepreneurship (TIE).Design/methodology/approachThis research adopted a qualitative case study methodology involving content analysis of secondary data. It analyzed data set against the existing EE framework to constructively explore the home-country effects.FindingsThe findings reveal that all home-country EE domains and associated factors affect TIEs. The paper established six testable propositions with regard to the home-country EE domains: accessible market, human capital, social culture, infrastructure and business support and government policies. A number of new factors were identified for each home-country EE domain. Finally, the paper provided future research directions.Research limitations/implicationsCare has to be taken in generalizing the findings from this research due to the small sample of contemporary Chinese immigrants in Australia and New Zealand. The propositions also require empirical testing.Practical implicationsThe findings contribute to the TIE literature by identifying new factors of the home-country EE and presenting testable propositions. The results have impact on immigration policies and programs.Social implicationsTransnational immigrant entrepreneurship can be a pathway to help immigrants to integrate into mainstream society. The findings from this article indirectly contribute to immigrant social development.Originality/valueThis original article fills research gaps by analyzing how home-country EE elements affect TIE. It reveals that the EE framework is effective for investigating it.

Does dual Embeddedness matter? Mechanisms and patterns of subsidiary ambidexterity that links a Subsidiary’s dual Embeddedness with its learning strategy

This study extends the idea of subsidiary ambidexterity as a subsidiary’s attempt to obtain a fit between its dual embeddedness (i.e. ambidextrous contexts) and its learning strategy (i.e. ambidextrous behaviors). We design a dyadic survey to collect data from Taiwanese MNEs and their Chinese subsidiaries to test our arguments. First, we redefine subsidiary ambidexterity as a three-step mechanism in which three different types of dual embeddedness will cause different legitimacy effects (resource or conformity effect), which will then result in a subsidiary’s different learning strategies. Second, we propose three different subsidiary ambidexterity patterns: (1) a subsidiary will prefer in maintaining higher external than internal political embeddedness, which leads to their focusing on exploitation (an adaptability case of ambidexterity); (2) a subsidiary will intend to develop both high external and high internal cultural embeddedness and that will cause them to explore and exploit simultaneously (an alignment case of ambidexterity); and (3) in sometimes a subsidiary will prefer to maintain higher external than internal cognitive embeddedness and that will lead the subsidiary to emphasize exploration, whereas in other times a subsidiary will prefer to have higher internal cognitive than external cognitive embeddedness and that will lead the subsidiary to emphasize exploitation (a balancing case of ambidexterity). Our view can largely contribute to the subsidiary learning literature.

Dual Embeddedness and Entrepreneurial Activities of Second-Generation Ethnic Entrepreneurs: Multiple Case Studies with Vietnamese Entrepreneurs in Germany

This article explores mutual relationships between embeddedness and second-generation ethnic entrepreneurs. We apply an exploratory and inductive qualitative research design to investigate how a dual embeddedness of second-generation immigrants in the ethnic community and in mainstream society influence their entrepreneurial activities and vice versa. Based on multiple cases studies of Vietnamese second-generation ethnic entrepreneurs, we identify four causal relations between embeddedness and entrepreneurial activities: (a) resource mobilisation; (b) formation of entrepreneurial motivation; (c) feedback effect on embeddedness and (d) re-formation of dual identity. This research contributes to the research on ethnic entrepreneurship by showing novel causalities between socio-psychological factors and entrepreneurial activities of second-generation entrepreneurs.

Is this Transnational Entrepreneurship? Five Cases in Which It Is Hard to Say ‘Yes’ or ‘No’

Scholars have lately started using the notion of ‘transnational entrepreneurship’. However, transnational entrepreneurship has not achieved the status of an independent research field in literature yet. Scholars and policymakers do not seem to have managed to address the clear-cut, distinctive nature of transnational entrepreneurship due to its conceptual ambiguity. This challenge calls for thoughtful consideration of the scope and range of the transnational entrepreneurship concept. Consequently, this study aims at critically reviewing the recent literature on transnational entrepreneurship in contrast to migrants’ entrepreneurial activities and international entrepreneurship to identify the current scholars’ underlying assumptions about this phenomenon and challenges them by demonstrating its heterogeneity with the presentation of five empirical cases. In these five cases, entrepreneurs conduct business in which transnationalism plays a certain role, yet differently. We contrast the presented cases with the four assumptions about transnational entrepreneurs identified from literature: (a) frequent travels between home and host countries, (b) simultaneous entrepreneurial engagement in two countries, (c) deep dual embeddedness in home and host institutional environments and (d) highly educated migrants. Based on the discussion, we develop a set of research propositions regarding the characteristics of transnational entrepreneurs, which are not fully considered in literature. By demonstrating the heterogeneity of transnational entrepreneurship and by showing future research orientations, we contribute to the literature on transnational entrepreneurship.

Dualne zakorzenienie filii zagranicznych a przewaga konkurencyjna wynikająca z innowacji

1. Achcaoucaou F., Miravitlles P., Leon-Darder F. [2014], Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness, International Business Review, 23 (1): 76–90. Google Scholar

Digital transformation of global business processes: the role of dual embeddedness

PurposeWhile much existing research on multinational corporation (MNC) digital transformation has followed a linear design and implementation logic using cross-sectional data, the multiple and divergent needs of headquarters (HQ) and subsidiaries suggest that MNC digital transformation actually involves a more iterative journey. The purpose of this paper is to apply the theoretical perspective of embeddedness to better define the complexities of MNC digital transformation, and identify how HQ and subsidiaries can navigate the complexities.Design/methodology/approachThis paper presents a longitudinal multi-case study of five Forbes Global 2000 firms that are HQ in Europe with large subsidiaries in the USA. The authors conducted in-depth interviews with 26 senior executives at HQ and subsidiaries over a 15-month period.FindingsThe process of digital transformation is significantly influenced by internal embeddedness (relationship of HQ with subsidiaries and across subsidiaries) and external embeddedness (relationship of subsidiaries with their local markets), and also by strategy, financial and technology considerations. While HQ and subsidiaries have different perspectives, an understanding of these influences can help HQ and subsidiaries navigate digital transformation.Research limitations/implicationsHQ and subsidiaries can apply insights from this research to navigate the complexities of digital transformation.Originality/valueThis paper demonstrates that embeddedness is a useful theory to understand the complexities of MNC digital transformation.

Re-envisioning Citizen Diplomacy: A Case Study of a Multifaceted, Transnational, People’s Republic of China “Ethnopreneur”

This article problematises the traditional conceptualisation of the “citizen diplomat” as being confined only to a single nation state sovereignty. At the nexus of transnational “ethnopreneurship,” dual embeddedness, neoliberalism, and post-materialism, citizen diplomats transcend territorially bound identities and perform unofficial dual-accredited roles in the enhancement of bilateral relationships. The protagonist in this case is a transnational People’s Republic of China ethnopreneur who adopts multiple forms of cultural commodification based on both Thai and Chinese resources. As a result, both territories have benefitted from the ensuing informal diplomatic interactions. Traversing the culturally distinctive city of Chiang Mai in Thailand and several flourishing cities in China, the article elucidates the importance of non-traditional diplomats. Put succinctly, it argues for a re-envisioning of transnational ethnopreneurial diplomacy so as to recognise multiple identities, cultures, and markets wherein positive-sum diplomatic returns are achieved. From an intra-Asian perspective, it seeks to remedy a scarcity in the literature – given that existing migrant studies are largely set in North American and European contexts.

Cognition, Dual Embeddedness, and Entrepreneurial Action: Evidence from Refugee Entrepreneurs

In this paper, relying on dual embeddedness theories, we examine how refugees identify and pursue new venture ideas after their arrivals in host countries. Based on data from 10 recently arrived re...

The Role of Legitimacy Obtaining in Connecting Subsidiary’s Contextual and Behavioral Ambidexterity

This study analyzes the mechanisms that connect a subsidiary contextual ambidexterity with its behavioral ambidexterity within dual (external and internal) embeddedness. We argue two views: the ali...

Dual Business Relationships, Opportunity Knowledge, and New Product Development: A Study on Returnee Young Ventures

The effects on innovation of the dual embeddedness of returnee young ventures (RYVs) in both domestic and international networks of relationships and knowledge contexts are important for value creation, growth, and success of these firms and embody a unique research opportunity. Drawing on a framework combining a business relationship perspective and the knowledge-based view, the authors propose that RYVs take advantage of business relationships and opportunity knowledge from both international and domestic markets to nurture their innovation. They test their model on a sample of 200 RYVs in China. The findings reveal that business relationships are essential for acquiring knowledge about technological and business opportunities, though only international opportunity knowledge and domestic business relationships positively influence new product development. In addition, the interaction between international and domestic business relationships constrains firms’ capacity for obtaining international opportunity knowledge. This study offers insights into how the trade-offs between dual relationships and subsequently sourced knowledge contribute to new product development in emerging markets, and it extends the discussion on the paradox view of business relationships with geographically dispersed actors.

Chinese business migrants in Australia: Middle-class transnationalism and ‘dual embeddedness’

Over the past two decades, four-fifths of the business immigration to Australia originated from China. Australian business migrants are required to undertake a two-step migration pathway: first they demonstrate a certain level of assets and business success to qualify for temporary entry and then, through successful business activity, they qualify for permanent residency (PR). Using in-depth interview narratives and survey data, this article explores migration motives and experiences of Chinese business migrants in Melbourne, Australia and situates them within the conceptual framework of middle-class transnationalism and ‘dual embeddedness’. We found that our respondents were primarily driven by motives other than the likelihood of business success in Australia, such as the prospects of good education for their children and a cleaner environment. Gaining Australian PR emerged as the key milestone in the migration process, allowing migrants to move freely between home and host countries and live as ‘dually embedded’ transnationals.

When Developing Countries Meet Transnational Universities: Searching for Complementarity and Dealing With Dual Embeddedness

During the past two decades, a growing number of universities, mainly from developed countries, have established branch campuses in developing countries. From the developing country perspective, attracting foreign universities can help mitigate financial constraints and capacity shortages that impair the state’s ability to provide greater access to higher education, while also improving teaching and research in general. However, foreign universities may also be detrimental if they crowd out their domestic counterparts. We explore different scenarios and policy options for developing countries aiming to attract foreign universities, building upon a review of four case studies from Chile, China, Kazakhstan, and Malaysia. Our analysis illustrates how host countries can provide incentives to align incoming foreign universities to complement and strengthen the areas of weakness in their higher education systems. We also reflect on how policy-makers can deal with the challenges associated with the dual embeddedness of international branch campuses.

Entrepreneurial pursuits in the Caribbean diaspora: networks and their mixed effects

ABSTRACTDomestic Caribbean entrepreneurs are embedded in their home-society. Diasporic entrepreneurs have a dual embeddedness in home-society and in host-society, with networks spanning both societies, which may give them comparative advantages in innovation, exporting and growth. Enterprising is traditionally a livelihood in the Caribbean, which is carried into the diaspora and sustained by dense ties between host- and home-societies. The empirical contribution is a three-way comparison between the Caribbean diaspora, the domestic Caribbeans and diasporans from other world regions. It uses a representative sample of adults living in, or originating from, the Caribbean. Diasporans are found to often become entrepreneurs by a pull of opportunity, whereas domestics are more likely to experience a push of necessity. Diasporans, more than domestics, are networking in the transnational sphere and in the sphere of business operations. This networking promotes outcomes such as innovation, exporting and growth expectations, in contrast to negative effects from networking in the private sphere. Policies may enhance benefits of diasporic entrepreneurship for Caribbean society.

Walking the walk or talking the talk? Corporate social responsibility decoupling in emerging market multinationals

Research shows that emerging market multinational enterprises (EM-MNEs) increasingly use corporate social responsibility (CSR) reporting as a global legitimation strategy. Less is known about when their CSR reporting is decoupled from their CSR performance. Drawing on neo-institutional theory, we argue that EM-MNEs’ CSR decoupling is shaped by their dual embeddedness in their home countries and the global institutional environment. We then examine how EM-MNEs’ home country institutional voids and degree of internationalization affect their tendency to engage in such decoupling. Our model receives partial support in a study of 93 MNEs from 15 emerging markets between 2005 and 2012.

The Best of Both Worlds: The Benefits of Dual Embeddedness for Repatriate Knowledge Transfer

Drawing on job embeddedness theory, this study adopts a novel approach by integrating the role of dual job embeddedness during the expatriation cycle as a critical antecedent of repatriate knowledge transfer. Accordingly, this study explores the influence of 1) expatriates’ job embeddedness in the host unit during their international assignment and 2) their job embeddedness in the headquarters upon return, on repatriate knowledge transfer. Moreover, the study investigates the levers organizations can pull to facilitate job embeddedness in the host unit and the headquarters upon expatriates’ return. To test our hypotheses, we collected multi-wave survey data from 129 expatriates during and after their international assignment and further obtained supervisor-ratings six months after repatriation. In addition, we developed and validated a scale capturing repatriate knowledge transfer. Results show that perceived organizational support has a positive influence on job embeddedness, both in the host unit and the headquarters. Further, we found that job embeddedness in the headquarters exerts a direct effect on repatriate knowledge transfer, while job embeddedness in the host unit increases communication with the former host unit upon repatriation, which in turn led to enhanced knowledge transfer. The implications of this study for theory and practice are discussed.

Dual relational embeddedness and knowledge transfer in European multinational corporations and subsidiaries

PurposeThis paper aims to investigate the relationship between the level of subsidiaries’ internal and external relational embeddedness and the degree of subsidiaries’ knowledge transfer. More specifically, the aim is to explore dual embeddedness of subsidiaries involved in the knowledge transfer process within multinational corporations’ (MNCs) network.Design/methodology/approachThe authors empirically analyse 165 European subsidiaries to demonstrate the crucial role of dual relational embeddedness in the transfer of knowledge within MNCs. Data were collected via a close-ended questionnaire and processed through an ordinary least squares regression model.FindingsResults show that internal embeddedness directly and positively influences the degree of subsidiaries’ knowledge transfer, whereas external embeddedness does not. Notwithstanding, a higher level of both types of embeddedness – known as dual embeddedness – generates multiplicative and positive effects on the degree of subsidiaries’ knowledge transfer.Practical implicationsBest practices and relevant knowledge follow a reverse transfer of knowledge from the subsidiaries to the internal MNC network that is facilitated by the relational embeddedness of subsidiaries. This has resulted in developing a dual embeddedness, which introduces new routines and scripts, as well as more relational links.Originality/valueThe research emphasises the relevance of the knowledge transfer process in multiple directions, evoking the central role of dual-embedded subsidiaries.

The effect of dual relational embeddedness and trust on alliance governance

PurposePrevious studies have illustrated that relational embeddedness is an important factor in alliance governance, but the homogeneity of it turned out to be an obstacle in the path of alliance governance research. In light of this theoretical gap, the purpose of this study is to answering the following questions: Is relational embeddedness homogeneous? How does dual relational embeddedness and inter-firm trust influence alliance governance (especially the equity governance)?Design/methodology/approachBased on the perspective of transaction cost economics, there is traditional “transaction characteristics-prevention cost-alliance governance” framework from Williamson. In this study, we firstly introduce relational embeddedness and inter-firm trust into new model as moderating variable which based on the primary hypotheses in traditional framework; secondly, from the social network view, we analysis the dual nature of relational embeddedness and inter-firm trust. Thirdly, the authors refine the above moderating effect from different type of relational embeddedness and inter-firm trust. The authors conduct empirical analyses based on survey data of 328 Chinese manufacturing enterprises, and multiple regression analyses were used to test the above mentioned moderating effect.FindingsThe results show: ERE (economic relational embeddedness) and SRE (social relational embeddedness), respectively, lead to deterrence-based trust and knowledge-based trust. The ERE and deterrence-based trust strengthen the tendency towards hierarchical equity cooperation, while SRE and knowledge-based trust weaken the likelihood of equity cooperation choices being made.Research limitations/implicationsThis study has made some encouraging progress, but there are still some problems and elements worthy of further study. First, from the view of independent variables, the authors did not include any transaction characteristics (such as asset co-specificity) in our integrated model. Secondly, and most importantly, the authors found some variables outside the analysis framework (such as whether involving R&D or core technology). After interaction with these variables, it is possible that the moderating role of relational embeddedness and trust, and especially the effects of SRE and KBT on equity cooperative governance, may be reversed.Practical implicationsInter-firm cooperation is an important and special organization, which can joint interdependent resources to create value. This paper provides suggestions to Chinese enterprises which could help them realize the duality of relationship character and how to properly implement alliance governance. It helps enterprises to realize that relational embeddedness is not homogeneous and clarify the relationship between inter-firm trust and alliance governance. This research indicates the firm manager that effective alliance governance comes from appropriate relational embeddedness and inter-firm trust.Originality/valueOverall, three contributions emerge: first, the authors construct a relational embeddedness and classical framework that overcomes the traditional deficiencies of being static and one-sided. Secondly, the forward research of dual embeddedness and trust improves the relational embeddedness theory and provides new ideas for subsequent research. Last but not least, the research clearly indicates that ambidextrous relational embeddedness leads to ambidextrous trust, which not only refines the existing research into trust mechanisms, but also clarifies the relationship between trust and alliance governance.

When Do Foreign Subsidiaries Outperform Local Compatriots? (WITHDRAWN)

This study adopts a dual embeddedness perspective to explore when foreign subsidiaries outperform local compatriots by evaluating the relationship among parent-subsidiary embeddedness (i.e. corporate embeddedness and local embeddedness), subsidiary- specific contingency factors (i.e. business group affiliation and local dispersion), and subsidiary performance in an emerging economy. Our analysis of 1047 subsidiaries indicates that foreign subsidiaries outperform local compatriots when they have higher level of corporate embeddedness and local embeddedness. Specifically, we further propose that these efforts are contingent on subsidiary's business group affiliation and local dispersion. Our findings highlight the importance of parent-subsidiary embeddedness and subsidiary-specific contingency factors in subsidiary performance enhancement.

Addressing dual embeddedness: The roles of absorptive capacity and appropriability mechanisms in subsidiary performance

This study examines how subsidiaries can manage dual embeddedness with both local partners and a multinational enterprise. Specifically, we examine the role of absorptive capacity and appropriability mechanisms on subsidiary performance. We analyse how absorptive capacity and appropriability enable subsidiaries to successfully address knowledge challenges related to internal and external networks. We conducted an empirical analysis on a sample of 165 subsidiaries. Our results suggest that absorptive capacity has a direct, positive effect on subsidiary performance, which is greater in emerging countries. The study also found an indirect effect of absorptive capacity on subsidiary performance, which is mediated through appropriability mechanisms. These findings extend the literature on international networks, dual embeddedness and absorptive capacity.

A Study on the Effects of Dual Network Embeddedness on Organizational Learning and Internationalization Performance

Knowledge is an endless resource as well as the key source of competitive advantage for enterprises. In the era of globalization with knowledge economy and network economy, the internationalization growth of enterprises is facing new challenges. Under such situations, an enterprise has to stress on the resource integration of internal network and reduce international business risks by developing the external network relationship to enhance the internationalization performance. With on-site questionnaire distribution and collection, enterprises with export-oriented manufacturing in Shanghai, Jiangsu, and Zhejiang areas are distributed 400 copies of questionnaire in this study. Total 302 valid copies are retrieved, with the retrieval rate 75.5%. The research results are summarized as below. 1. Dual network embeddedness presents significantly positive effects on organizational learning. 2. Dual network embeddedness shows remarkably positive effects on internationalization performance. 3. Organizational learning reveals notably positive effects on internationalization performance. It is expected to apply the research results to the internationalization growth or transnational business development of enterprises, to enhance the strategic performance and financial performance, and to be the reference for research on network embeddedness and organizational learning.