O1 Abstract
Early-Stage Business Failures of Immigrant Entrepreneurs : The Role of Liability of Foreignness (2023)

Némethová, K., & Ilyas, I. M. (2023). Early-Stage Business Failures of Immigrant Entrepreneurs : The Role of Liability of Foreignness. In S. Taneja (Ed.), Annual Meeting Proceedings : Boston 2023 (2023, pp. -). Academy of Management. Academy of Management Annual Meeting Proceedings, 2023. https://doi.org/10.5465/AMPROC.2023.18238abstract

JYU authors or editors

Publication details

All authors or editorsNémethová, Kristína; Ilyas, Imran Muhammad

Parent publicationAnnual Meeting Proceedings : Boston 2023

Parent publication editorsTaneja, Sonia


  • Academy of Management Annual Meeting

Place and date of conferenceBoston, USA4.-8.8.2023

Journal or seriesAcademy of Management Annual Meeting Proceedings



Publication year2023

Publication date24/07/2023

Number in series2023


Issue number1

Pages range-

PublisherAcademy of Management

Publication countryUnited States

Publication languageEnglish


Publication open accessNot open

Publication channel open access


The study identifies and analyzes the role of liability of foreignness in the failure of immigrant owned new ventures. Building on literatures of immigrant entrepreneurship and liability of foreignness, we analyze the failure of 11 immigrant owned new ventures in Finland. In our comparative case study analysis, we find that entrepreneurial firms founded by immigrant entrepreneurs experience liability of foreignness due to foreign origins of their founders. We explore the concept of liability of foreignness at individual level and discuss five sources including unfamiliarity with the local environment, lack of legitimacy, constraints imposed by host countries, lack of cultural integration, and insufficient local language skills, that may affect the success of new ventures. Furthermore, a process is developed that outlines how various sources of liability of foreignness leads to failure of entrepreneurial firm founded by immigrants. In this process various factors are highlighted that play key role to make liability of foreignness work. The study contributes to literature on immigrant entrepreneurship, liability of foreignness, and entrepreneurial failure.

Keywordsentrepreneursentrepreneurshipimmigrantsfailureintegration of migrantsunfamiliarity

Contributing organizations

Ministry reportingWon't be reported

Last updated on 2024-30-04 at 19:46