Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry

ABSTRACT This study explores the importance of cross‐border social networks for entrepreneurs in developing countries by examining ties between the Indian expatriate community and local entrepreneurs in India's software industry. We find that local entrepreneurs who have previously lived outsid...

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Veröffentlicht in:Journal of economics & management strategy 2010-12, Vol.19 (4), p.991-1012
Hauptverfasser: Nanda, Ramana, Khanna, Tarun
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description ABSTRACT This study explores the importance of cross‐border social networks for entrepreneurs in developing countries by examining ties between the Indian expatriate community and local entrepreneurs in India's software industry. We find that local entrepreneurs who have previously lived outside India rely significantly more on diaspora networks for business leads and financing. This is especially true for entrepreneurs who are based outside software hubs—where getting leads to new businesses and accessing finance is more difficult. Our results provide micro‐evidence consistent with a view that cross‐border social networks play an important role in helping entrepreneurs to circumvent the barriers arising from imperfect domestic institutions in developing countries.
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source Wiley Online Library Journals Frontfile Complete; EBSCOhost Business Source Complete
subjects Brain drain
Business networks
Career development
Developing countries
Diaspora
Entrepreneurs
Entrepreneurship
Expatriates
India
Labour migration
LDCs
Network analysis
Occupational choice
Skilled workers
Social networks
Software
Software industry
Studies
title Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry
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