Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Asia Pacific Journal of Management
Published in: Asia Pacific Journal of Management 3/2012

01-09-2012

Integrating the resource-based view and transaction cost economics in immigrant business performance

Authors: Xiaohua Yang, Elly Yi-Hsuan Ho, Artemis Chang

Published in: Asia Pacific Journal of Management | Issue 3/2012

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

This paper presents a new integrated framework that integrates the resource-based view and transaction cost economics to explain the phenomenon of immigrant entrepreneurship. We extend the existing literature on immigrant entrepreneurship by identifying different types of ethnic network resources and demonstrating how these resources interact with transaction costs in the context of Chinese immigrants. Thus, our study contributes to the literature by providing a theoretical framework which identifies mechanisms immigrant entrepreneurs use to strategically deploy resources to minimize costs and maximize performance outcomes.
previous article Business groups and institutional upheaval in emerging economies: Corporate venturing in Korea
next article Diversification and diffusion: A social networks and institutional perspective

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now
Footnotes
1
“Chinese immigrants” here refers to Chinese-speaking ethnic immigrants from Mainland China, Taiwan, and Hong Kong.
 
Literature
Ahuja, G. 2000. Collaboration networks, structural holes, and innovation: A longitudinal study. Administrative Science Quarterly, 45: 425–455.CrossRef
Aldrich, H., & Waldinger, R. 1990. Ethnicity and entrepreneurship. Annual Review of Sociology, 16: 111–135.CrossRef
Aldrich, H., Waldinger, R., & Ward, R. 1990. Ethnic entrepreneurs. Thousand Oaks, CA: Sage.
ABS (Australian Bureau of Statistics). 2001. Australian social trends 2001. Canberra, AU: ABS.
ABS (Australian Bureau of Statistics). 2007. Australian social trends 2007. Canberra, AU: ABS.
ABS (Australian Bureau of Statistics). 2008. Migration Australia 2006–07. Canberra, AU: ABS.
Bailey, T., & Waldinger, R. 1991. Primary, secondary, and enclave labor markets: A training systems approach. American Sociological Review, 56: 432–445.CrossRef
Barrett, G., Jones, T. P., & McEvoy, D. 1996. Ethnic minority business: Theoretical discourse in Britain and North America. Urban Studies, 33: 783–809.CrossRef
Bates, T. 1994. Social resources generated by group support networks may not. Social Forces, 72: 671.
Bhagat, R. S., McDevitt, A. S., & McDevitt, I. 2010. On improving the robustness of Asian management theories: Theoretical anchors in the era of globalization. Asia Pacific Journal of Management, 27(2): 179–192.CrossRef
Bian, Y. 1994a. Guanxi and the allocation of urban jobs in China. China Quarterly, 340: 971–999.CrossRef
Bian, Y. 1994b. Work and inequality in China. Albany, NY: State University of New York Press.
Bian, Y. 1997. Bringing strong ties back in: Indirect ties, network bridges, and job searches in China. American Sociological Review, 62: 366–385.CrossRef
Bromily, E., & Cummings, L. L. 1995. Transaction costs in organizations with trust. In R. Beis, B. Sheppard & R. Lewicki (Eds.). Research on negotiations in organizations. Greenwich, CT: JAI Press.
Brown, B., & Butler, J. E. 1993. Networks and entrepreneurial development: The shadow of borders. Entrepreneurship and Regional Development, 5: 101–116.CrossRef
Burt, R. S. 1992. Structural holes: The social structure of competition. Cambridge: Harvard University Press.
Butler, J. E., & Hansen, G. S. 1991. Network evolution, entrepreneurial success, and regional development. Entrepreneurship and Regional Development, 3: 1–16.CrossRef
Callaghan, M. 1993. The development of application of a test instrument for relationship marketing orientation within Australian businesses. Bachelor of Business Thesis, University of Southern Queensland, Queensland, Australia.
Carney, M., Gedajlovic, E., & Yang, X. 2009. Varieties of Asian capitalism: Toward an institutional theory of Asian enterprise. Asia Pacific Journal of Management, 26(3): 361–380.CrossRef
Chang, W. C. 2004. Guanxi and regulation in networks: The Yunnanese jade trade between Burma and Thailand, 1962–88. Journal of Southeast Asian Studies, 35: 479–501.CrossRef
Chen, Z. X., & Francesco, A. M. 2000. Employee demography, organizational commitment, and turnover intentions in China: Do cultural differences matter?. Human Relations, 53: 869–887.CrossRef
Chiang, L. H., & Hsu, J. H. 2005. Locational decisions and residential preferences of Taiwanese immigrants in Australia. GeoJournal, 64: 75.CrossRef
Chow, I. H. 2008. How trust reduces transaction costs and enhances performance in China’s businesses. S.A.M. Advanced Management Journal, 73: 25–34.
Chrysostome, E. 2010. The success factors of necessity immigrant entrepreneurs: In search of a model. Thunderbird International Review, 52: 137–152.CrossRef
Chrysostome, E., & Lin, X. 2010. Immigrant entrepreneurship: Scrutinizing a promising type of business venture. Thunderbird International Review, 52: 77–82.CrossRef
Cialdini, R. B., & Goldstein, N. J. 2004. Social influence: Compliance and conformity. Annual Review of Psychology, 55: 591–603.CrossRef
Clulow, V., Barry, C., & Gerstman, J. 2007. The resource-based view and value: The customer-based view of the firm. Journal of European Industrial Training, 31: 19–35.CrossRef
Coleman, J. 1990. Foundations of social theory. Cambridge: Harvard University Press.
Collins, J. 2002. Chinese entrepreneurs: The Chinese diaspora in Australia. International Journal of Entrepreneurial Behaviour and Research, 8: 113–133.CrossRef
Coviello, N. E. 2006. The network dynamics of international new ventures. Journal of International Business Studies, 37: 713–731.
Coviello, N. E., & Cox, M. P. 2006. The resource dynamics of international new venture networks. Journal of International Entrepreneurship, 4: 113–132.CrossRef
Cummings, S. 1980. Self-help in urban America: Patterns of minority economic development. Port Washington, NY: Kennikat Press.
Davidsson, P., & Honig, B. 2003. The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18: 301–331.CrossRef
Dietrich, M. 1991. Firms, markets and transaction cost economics. Scottish Journal of Political Economy, 38: 41–57.CrossRef
Doz, Y. L. 1996. The evolution of cooperation in strategic alliances: Initial conditions or learning processes?. Strategic Management Journal, 17: 55–83.CrossRef
Dyer, J. H., & Chu, W. 2003. The role of trustworthiness in reducing transaction costs and improving performance: Empirical evidence from the United States, Japan, and Korea. Organizational Science, 14: 57–68.CrossRef
Emirbayer, M., & Goodwin, J. 1994. Network analysis, culture, and the problem of agency. The American Journal of Sociology, 99: 1411–1454.CrossRef
Fang, T. 2010. Asian management research needs more self-confidence: Reflection on Hofstede (2007) and beyond. Asia Pacific Journal of Management, 27(1): 155–170.CrossRef
Fink, R. C., Edelman, L. F., Hatten, K. J., & James, W. L. 2006. Transaction cost economics, resource dependence theory, and customer-supplier relationships. Industrial and Corporate Change, 15: 497–529.CrossRef
Fisman, R. 2003. Ethnic ties and the provision of credit: Relationship-level evidence from African firms. Advances in Economic Analysis and Policy, 3: 1–18.
Fliaster, A., & Spiess, J. 2008. Knowledge mobilization through social ties: The cost-benefit analysis. Schmalenbach Business Review: ZFBF, 60: 99–117.
Fock, H. K., & Woo, K. 1998. The China market: Strategic implications of guanxi. Business Strategy Review, 9: 33–43.CrossRef
Gibb, A. 2006. Making markets in business development services for SMEs: Taking up the Chinese challenge of entrepreneurial networking and stakeholder relationship management. Journal of Small Business and Enterprise Development: Entrepreneurship Development in China, 13: 263–283.CrossRef
Gnyawali, D. R., & Madhavan, R. 2001. Cooperative networks and competitive dynamics: A structural embeddedness perspective. Academy of Management Review, 26: 431–445.
Goh, M., Prakash, S., & Yeo, R. 2007. Resource-based approach to IT shared services in a manufacturing firm. Industrial Management + Data Systems, 107: 251–270.CrossRef
Gouldner, A. W. 1960. The norm of reciprocity: A preliminary statement. Social Review, 25: 161–178.CrossRef
Granovetter, M. 1973. The strength of weak ties. The American Journal of Sociology, 78: 1360–1380.CrossRef
Granovetter, M. 1982. The strength of weak ties: A network theory revisited. In P. Marsden & N. Lin (Eds.). Social structure and network analysis: 103–130. Beverly Hills: Sage.
Granovetter, M. 1985. Economic action and social structure: The problem of embeddedness. The American Journal of Sociology, 91: 481–510.CrossRef
Greene, P. G. 1997. A resource-based approach to ethnic business sponsorship: A consideration of Ismaili-Pakistani immigrants. Journal of Small Business Management, 35: 58–72.
Haley, G. T. 1997. A strategic perspective on overseas Chinese networks’ decision making. Management Decision, 35: 587–594.CrossRef
Hammarstedt, M. 2004. Self-employment among immigrants in Sweden—An analysis of intragroup differences. Small Business Economics, 23: 115–126.CrossRef
Hansen, M. T. 1998. The search-transfer problem: The role of weak ties in sharing knowledge across organization subunits. Administrative Science Quarterly, 44: 82–111.CrossRef
Heiman, B., & Nickerson, J. A. 2002. Towards reconciling transaction cost economics and the knowledge-based view of the firm: The context of interfirm collaborations. International Journal of the Economics of Business, 9: 97–116.CrossRef
Heracleous, L., & Murray, J. 2001. Networks, interlocking directors and strategy: Toward a theoretical framework. Asia Pacific Journal of Management, 18(2): 137–160.CrossRef
Hosler, S. S. 1996. Japanese immigrant entrepreneurs in New York City: The role of ethnic collectivity in business. PhD dissertation, State University of New York, Albany, New York.
Huang, Y. H. 2002. Toward a cross-cultural theoretical framework of organizational boundaries. Unpublished manuscript, Chinese University of Hong Kong, Hong Kong, PRC.
Hutchings, K., & Weir, D. 2006. Understanding networking in China and the Arab world: Lessons for international managers. Journal of European Industrial Training, 30: 272–290.CrossRef
Ibarra, H. 1993. Personal networks of women and minorities in management: A conceptual framework. Academy of Management Review, 18: 55–87.
Iyer, G. 1999. The impact of religion and reputation in the organization of Indian merchant communities. Journal of Business and Industrial Marketing, 14: 102–117.CrossRef
Iyer, G. R., & Shapiro, J. M. 1999. Ethnic entrepreneurial and marketing systems: Implications for the global economy. Journal of International Marketing, 7: 83–110.
Jones, G. R. 2001. Towards a positive interpretation of transaction cost theory: The central roles of entrepreneurship and trust. In M. A. Hitt, R. E. Freeman & J. S. Harrison (Eds.). Handbook of strategic management: 208–228. Malden, MA: Blackwell Publishers Inc.
Kale, P., Singh, H., & Perlmutter, H. 2000. Learning and protection of proprietary assets in strategic alliance: Building relational capital. Strategic Management Journal, 21: 217–237.CrossRef
Kee, P. 1994. Unravelling the global Chinese business networks. BIPR Bulletin, 11: 9–12.
Kelln, R. C., & Ellard, J. H. 1999. An equity theory analysis of the impact of forgiveness and retribution on transgressor compliance. Personal Social Psychology Bulletin, 25: 864–872.CrossRef
Kulkarni, S. P., & Fiet, J. O. 2007. A transaction cost analysis of restructuring alternatives. Advances in Competitiveness Research, 15: 81.
Kushnirovich, N., & Heilbrunn, S. 2008. Financial funding of immigrant businesses. Journal of Developmental Entrepreneurship, 13(2): 167–185.CrossRef
Li, J., & Wright, P. P. 2000. Guanxi and the realities of career development: A Chinese perspective. Career Development International, 5: 369–378.CrossRef
Li, P. S. 1993. Chinese investment and business in Canada: Ethnic entrepreneurship reconsidered. Pacific Affairs, 66: 219–243.CrossRef
Li, P. S., & Dong, C. 2007. Earnings of Chinese immigrants in the enclave and mainstream economy. The Canadian Review of Sociology and Anthropology, 44: 65–99.CrossRef
Liang, T. P., & Huang, J. S. 1998. An empirical study on consumer acceptance of products in electronic markets: A transaction cost model. Decision Support Systems, 24: 29–43.CrossRef
Light, I. 1972. Ethnic enterprise in America. Berkeley and Los Angeles: University of California Press.
Light, I. 1979. Disadvantages! Minorities in self-employment. International Journal of Comparative Sociology, 20: 31–55.CrossRef
Light, I. 1984. Immigrant and ethnic enterprise in North America. Ethnic and Racial Studies, 7: 195–216.CrossRef
Light, I., & Bonacich, E. 1988. Immigrant entrepreneurs: Koreans in Los Angeles, 1965–1982. Berkeley and Los Angeles: University of California Press.
Light, I., & Gold, S. 2000. Ethnic economies. San Diego: Academic.
Lin, J., & Si, S. X. 2010. Can guanxi be a problem? Contexts, ties, and some unfavorable consequences of social capital in China. Asia Pacific Journal of Management, 27(3): 561–581.CrossRef
Logan, J. R., Zhang, W., & Alba, R. D. 2002. Immigrant enclaves and ethnic communities in New York and Los Angeles. American Sociological Review, 67: 299–322.CrossRef
Lovett, S., Simmons, L. C., & Kali, R. 1999. Guanxi versus the market: Ethics and efficiency. Journal of International Business Studies, 30: 231–241.CrossRef
Lunn, J., & Steen, T. 2000. An investigation into the effects of ethnicity and immigration on self-employment. International Advances in Economic Research, 16: 498–520.CrossRef
Luo, Y. 2000. Guanxi and business. River Edge, NJ: World Scientific Publishing Co.
Luo, Y. 2003. Industrial dynamics and managerial networking in an emerging market: The case of China. Strategic Management Journal, 24: 1315–1327.CrossRef
Lyons, B., & Mehta, J. 1997. Contracts, opportunism and trust: Self-interest and social orientation. Cambridge Journal of Economics, 21(2): 239–257.CrossRef
Merrilees, B., & Miller, D. 1999. Direct selling in the west and east: The relative roles of product and relationship (guanxi) drivers. Journal of Business Research, 45: 267–273.CrossRef
Michailova, S., & Worm, V. 2003. Personal networking in Russia and China. European Management Journal, 23: 509–519.CrossRef
Millington, A., Eberhardt, M., & Wilkinson, B. 2006. Guanxi and supplier search mechanisms in China. Human Relations, 59: 505–531.CrossRef
Min, P. G. 1996. Caught in the middle: Korean merchants in New York and Los Angeles. Berkeley and Los Angeles: University of California Press.
Min, P. G. 2000. Religion and ethnicity: A comparison of Indian Hindu and Korean Christian immigrants in the United States. Bulletin of the Royal Institute of Inter-Faith Studies, 2: 121–140.
Min, P. G., & Bozorgmehr, M. 2000. Immigrant entrepreneurship and business patterns: A comparison of Koreans and Iranians in Los Angeles. The International Migration Review, 34: 707–738.CrossRef
Nooteboom, B. 1992. Towards a dynamic theory of transactions. Journal of Evolutionary Economics, 2: 281–299.CrossRef
Park, S. H., & Luo, Y. 2001. Guanxi and organizational dynamics: Organizational networking in Chinese firms. Strategic Management Journal, 22: 455–477.CrossRef
Peng, M. W., & Zhou, J. Q. 2005. How network strategies and institutional transitions evolve in Asia. Asia Pacific Journal of Management, 22(4): 321–336.CrossRef
Portes, A., & Sensenbrenner, J. 1993. Embeddedness and immigration: Notes on the social determinants of economic action. The American Journal of Sociology, 98: 1320–1350.CrossRef
Portes, A., & Zhou, M. 1996. Self-employment and the earnings of immigrants. American Sociological Review, 61: 219–230.CrossRef
Powell, W. 1990. Neither market nor hierarchy: Network forms of organization. Research in Organizational Behavior, 12: 295–336.
Raijman, R., & Tienda, M. 2000. Immigrants’ pathways to business ownership: A comparative ethnic perspective. The International Migration Review, 34: 682–706.CrossRef
Redding, S. G. 1990. The spirit of Chinese capitalism. Berlin: Walter de Gruyter.
Redding, S. G. 2000. What is Chinese about family business? And how much is family and how much is business? Globalization of Chinese business firms. New York: St. Martin’s Press.
Sampson, R. C. 2004. Organizational choice in RandD alliances: Knowledge-based and transaction cost perspectives. Managerial and Decision Economics, 25: 421–436.CrossRef
Sanders, J. M., & Nee, V. 1996. Immigrant self-employment: The family as social capital and the value of human capital. American Sociological Review, 61: 231–249.CrossRef
Seifert, W. 1997. Occupational and economic mobility and social integration of Mediterranean migrants in Germany. European Journal of Population, 13: 1–16.CrossRef
Sequeira, J. M., & Rasheed, A. A. 2006. Start-up and growth of immigrant small business: The impact of social and human capital. Journal of Developmental Entrepreneurship, 11: 357–375.CrossRef
Slater, G., & Spencer, D. A. 2000. The uncertain foundations of transaction costs economics. Journal of Economic Issues, 34: 61–87.
Standifird, S., & Marshall, R. S. 2000. The transaction cost advantage of guanxi-based business practices. Journal of World Business, 35: 21–43.CrossRef
Tan, J. 2002. Culture, nation, and entrepreneurial strategic orientations: Implications for an emerging economy. Entrepreneurship Theory and Practice, 26(4): 95–111.
Teixeira, C. 1998. Cultural resources and ethnic entrepreneurship: A case study of the Portuguese real estate industry in Toronto. Canadian Geographer, 42: 267–281.CrossRef
Tian, G., & Shan, J. 1999. Do migrants rob jobs? New evidence from Australia. Australian Economic History Review, 39(2): 133–142.CrossRef
Tilly, C. 1990. Transplanted networks. In V. Yans-McLaughlin (Ed.). Immigration reconsidered: History, sociology and politics. New York: Oxford University Press.
Tung, R. L., & Chung, H. F. L. 2010. Diaspora and trade facilitation: The case of ethnic Chinese in Australia. Asia Pacific Journal of Management, 27(3): 371–392.CrossRef
Waldinger, R. 1986. Through the eye of the needle: Immigrants and enterprise in New York’s garment trades. New York: New York University Press.
Whatley, M. A., Webster, M. J., Smith, R. H., & Rhodes, A. 1999. The effect of a favor on public and private compliance: How internalized is the norm of reciprocity?. Basic Applied Social Psychology, 21: 251–259.CrossRef
Williamson, O. 1975. Markets and hierarchies. New York: Free Press.
Williamson, O. 1983. Credible commitments: Using hostages to support exchange. The American Economic Review, 73(4): 519–535.
Wilson, T. D. 1999. Anti-immigrant sentiment and the process of settlement among Mexican immigrants to the United States: Reflections on the current wave of Mexican immigrant bashing. Review of Radical Political Economics, 31(2): 1–18.
Wong, M. 2007. Guanxi and its role in business. Chinese Management Studies, 1(4): 257–276.CrossRef
Wong, Y. H., & Chan, R. Y. 1999. Relationship marketing in China: Guanxi, favouritism and adaptation. Journal of Business Ethics, 22: 107–118.CrossRef
Wong, Y. H., & Tam, J. H. 2000. Mapping relationships in China: Guanxi dynamic approach. Journal of Business and Industrial Marketing, 15: 57–70.CrossRef
Wu, W. P., & Choi, W. L. 2004. Transaction cost, social capital and firms’ synergy creation in Chinese business networks: An integrative approach. Asia Pacific Journal of Management, 21(3): 325–343.CrossRef
Xin, K., & Pearce, J. 1996. Guanxi: Connections as substitutes for formal institutional support. Academy of Management Journal, 39: 1641–1658.CrossRef
Yang, M. M. 1994. Gifts, favors, banquets: The art of social relationships in China. Ithaca, NY: Cornell University Press.
Yang, M. M. 2002. The resilience of guanxi and its new deployments: A critique of some new guanxi scholarship. China Quarterly, 170: 459–476.CrossRef
Yang, X., & Terjesen, S. 2007. In search of confidence: Context, collaboration, and constraints. Asia Pacific Journal of Management, 24(4): 497–507.CrossRef
Yeung, I. Y., & Tung, R. L. 1996. Achieving business success in Confucian societies: The importance of guanxi (connections). Organizational Dynamics, 3: 54–65.CrossRef
Yoon, I. J. 1990. The changing significance of ethnic and class resources in immigrant businesses: The case of Korean businesses in Chicago. International Migration Review, 25: 303–332.CrossRef
Yoon, I. J. 1997. On my own: Korean businesses and race relations in America. Chicago: University of Chicago Press.
Zho, M., & Logan, J. 1989. Returns on human capital in ethnic enclaves: New York City’s Chinatown. American Sociological Review, 54: 809–820.CrossRef
Metadata
Title
Integrating the resource-based view and transaction cost economics in immigrant business performance
Authors
Xiaohua Yang
Elly Yi-Hsuan Ho
Artemis Chang
Publication date
01-09-2012
Publisher
Springer US
Published in
Asia Pacific Journal of Management / Issue 3/2012
Print ISSN: 0217-4561
Electronic ISSN: 1572-9958
DOI
https://doi.org/10.1007/s10490-010-9236-2

Other articles of this Issue 3/2012

Asia Pacific Journal of Management 3/2012 Go to the issue

OriginalPaper

Market design in Chinese market places

OriginalPaper

Effects of perceptions on LMX and work performance: Effects of supervisors’ perception of subordinates’ emotional intelligence and subordinates’ perception of trust in the supervisor on LMX and, consequently, performance

Reviews

Technological innovation of firms in China: Past, present, and future

OriginalPaper

The effects of social networks and contractual characteristics on the relationship between venture capitalists and entrepreneurs

OriginalPaper

Environment, governance, controls, and radical innovation during institutional transitions

Editorial

Several key reasons why a paper is likely to be rejected at the Asia Pacific Journal of Management