Biculturalism and Entrepreneurship
Biculturalism Theory: The Immigrant Advantage in Entrepreneurship
What gives an entrepreneur the ability to spot a gap in the market? According to Biculturalism Theory, the answer may lie in the unique cognitive flexibility developed by immigrants and individuals exposed to two distinct cultures.
Biculturalism refers to an individual characteristic that develops as a result of deep exposure to two cultures. The typical case is the immigrant who must learn a host country's local culture while maintaining the elements of their home culture.
The Cognitive Advantage
The Al-Shammari research team (2018) theorizes that this duality provides a distinct competitive edge. They argue that:
"Those who are exposed to different cultures and environments will experience different types of experiences in their social interactions and thus will accumulate rich knowledge that is diverse."
This "rich knowledge" allows bicultural entrepreneurs to connect dots that others cannot see, leading to superior Opportunity Recognition.
[Image of entrepreneurial process stages]The Stage-Based Effect: A Mixed Blessing
However, the theory introduces a critical nuance. The advantage is not uniform across the entire life of the startup. Al-Shammari finds that the impact changes depending on the stage of the venture:
- Early Stage (Advantage): In the discovery, evaluation, and selection stages, bicultural individuals excel. Their diverse perspective helps them spot unique problems and innovative solutions.
- Late Stage (Challenge): In the exploitation and execution stages, bicultural founders often struggle due to institutional constraints or a lack of deep, local networks in the host country.
Theoretical Extensions: Multiculturalism & Distance
This theory lends itself to several fascinating extensions:
- Multiculturalism: What about individuals exposed to three or more cultures? While this adds more diverse experiences, there may be an inverted U-shaped relationship (diminishing returns). At a certain point, the cognitive load of managing too many cultural frames may dilute the benefits.
- Cultural Distance: Does it matter how different the two cultures are? The theory suggests that individuals with exposure to "distant" cultures (e.g., Japan vs. USA) may benefit more from unique insights than those with "close" cultures (e.g., USA vs. Canada).
Related Frameworks
Biculturalism Theory complements several other theories regarding immigrant entrepreneurship:
- Misfit Theory: Suggests immigrants choose entrepreneurship because they face discrimination or "misfit" in the traditional job market (a "push" factor).
- Hoselitz's Theory: Suggests that individuals from highly developed cultures are particularly apt to start new ventures in their host countries.
- Withdrawal of Status Respect: Suggests entrepreneurs often emerge from social groups that have lost their previous status and seek to regain it through economic achievement.
Video: The Bicultural Experience
References
Al-Shammari, M., & Al Shammari, H. (2018). Biculturalism and entrepreneurship: An introductory research note (A). International Journal of Entrepreneurship, 22(1), 1-11.
Al-Shammari, M., & Al Shammari, H. (2018). The impact of bicultural knowledge, skills, abilities and other experiences (KSAOs) on individual entrepreneurial behavior. International Journal of Entrepreneurship, 22(2).
