International Theories
International & Immigrant Entrepreneurship Theories
These theories explore how national borders, cultural backgrounds, and migration experiences shape entrepreneurial activity. They cover both how firms cross borders and how the immigrant experience drives innovation.
1. Born Global Startups
Contrasting with the traditional "Uppsala Model" (incremental expansion), this theory describes ventures that internationalize from the outset. These firms coordinate activities across multiple countries immediately to gain a competitive advantage, often leveraging technology to bypass traditional barriers.
2. Bicultural Theory
This theory posits that bicultural individuals possess Cognitive Flexibility. By navigating two cultures, they develop the unique ability to spot cross-cultural opportunities (arbitrage) and combine ideas from different worlds to innovate.
3. Hoselitz’s Theory (Marginality)
Sociologist Bert Hoselitz suggested that "marginal" individuals—those not fully integrated into the dominant culture—are more likely to be entrepreneurs. Their lack of attachment to established traditions allows them the psychological freedom to disrupt the status quo.
4. International Entrepreneurship
This field sits at the intersection of international business and venturing. Unlike domestic entrepreneurship, it specifically analyzes the complexity of discovering and exploiting opportunities across national borders, dealing with foreign regulations, currencies, and cultures.
5. Misfit Theory (Blocked Mobility)
Also known as the "Blocked Mobility Thesis," this suggests that immigrants often start businesses because they are "pushed" out of the traditional labor market. Unable to secure salaried jobs due to unrecognized credentials or discrimination, they turn to entrepreneurship for survival.
6. Withdrawal of Status Respect Theory
Proposed by Everett Hagen, this theory argues that when a social group loses its status (withdrawal of respect), they are motivated to regain it through economic achievement. Entrepreneurship becomes the vehicle for recovering social standing.
