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 editors: Némethová, Kristína; Ilyas, Imran Muhammad

Parent publication: Annual Meeting Proceedings : Boston 2023

Parent publication editors: Taneja, Sonia

Conference:

Place and date of conference: Boston, USA, 4.-8.8.2023

Journal or series: Academy of Management Annual Meeting Proceedings

ISSN: 0065-0668

eISSN: 2151-6561

Publication year: 2023

Publication date: 24/07/2023

Number in series: 2023

Volume: 2023

Issue number: 1

Pages range: -

Publisher: Academy of Management

Publication country: United States

Publication language: English

DOI: https://doi.org/10.5465/AMPROC.2023.18238abstract

Publication open access: Not open

Publication channel open access: 

Abstract

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.

Keywords: entrepreneurs; entrepreneurship; immigrants; failure; integration of migrants; unfamiliarity

Contributing organizations

Ministry reporting: Won't be reported