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International Marketing & Migran t Owned Enterprises. by Michael R. Czinkota , Gary Knight & Zaheer Khan. Migrant Business Owners. … launch businesses that involve trade and investment between their adopted and home countries. 12% of US and 14% of UK residents Support local economies
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International Marketing & Migrant Owned Enterprises by Michael R. Czinkota, Gary Knight & Zaheer Khan
Migrant Business Owners • …launch businesses that involve trade and investment between their adopted and home countries • 12% of US and 14% of UK residents • Support local economies • Create job opportunities • operate as entrepreneurs, investors in capital markets, tourists, volunteers and advocates • A SERIES OF PROPOSITIONS
Proposition no. 1 • Among migrant entrepreneurs, internationalization is positively associated with business performance. International business and trade lead to… • economic prosperity • efficient use of resources • interconnectedness to world economy • access to range of products and services • job creation • creation of various comparative advantages
Proposition no. 2 Foreign location advantage is positively associated with international performance. OVERCOMING DISADVANTAGES such as… • exchange rate fluctuations • trade barriers • insufficient knowledge about foreign market conditions through… POSESSION OF SPECIFIC, PRIVATE KNOWLEDGE
Proposition no. 3 • International experience and prior industry experience are positively associated with international performance. A long term effect! International and prior industry experience facilitate… • Internationalization • Organizational performance
Proposition no. 4 • International market knowledge, international business skills, and international marketing capabilityare positively associated with international performance. MARKET RESEARCH clarifies information about target market, nature of competitors, and strategies and tactics to achieve organizational goals BUSINESSCAPABILITIESinclude identifying viable international opportunities, superior knowledge of foreign markets, and skills in understanding and focusing on customers MARKETING COMPETENCE implies skillful handling of product adaptation, prowess in differentiating product, and being effective in pricing, advertising and distribution
Proposition no. 5 • Firm-level entrepreneurial orientation and founder’s entrepreneurial mindset are positively associated with international performance. PROACTIVENESS Relates to aggressive posturing to competitors, with emphasis on execution & follow-up of tasks in pursuit of the firm’s objectives AGGRESSIVENESS Reflects a willingness to be unconventional rather than relying on traditional methods of market entry and such firms challenge industry leaders RISK SEEKING Involves the planning and implementation of projects entailing significant chances of costly failures
Proposition no. 6 • Firm level international growth orientation is positively associated with international performance. Characterized by • Strong desire among managers to grow firmin international markets • Managerial vision • Proactive organizational culture
Proposition no. 7 • Learning orientation is positively associated with international performance. Promotes and supports • An organizationalenvironment • Innovation • The ability to respond to evolving conditions in target markets through appropriatestrategies
Proposition no. 8 • Development and leveraging of local and distantcommunitysocialcapital in the resident country are positively associated with international performance. Comparative Advantage: SOCIAL NETWORKS • Access to resources from nearby members of same ethic community • Increase migrants’ awareness of international opportunity & facilitate opportunity to capitalize on them
Proposition no. 9 • Matching product or service characteristics with target country needs is positively associated with international performance. Product Matching relates to the strategic fitting of a product or service to suit a market’s sociocultural and technological environments, as well as product and marketing characteristics
Proposition no. 10 • Technological competence is positively associated with business performance. Digital Technologies represent new generation applied methods that facilitate full time availability, personalized treatment and instant delivery of standardized offerings to local and distant markets, at lower cost and less risk. They make smaller firms appear large.
A POSSIBLE FLOW A SOMALI YOUNG MAN (YM) YM COMES TO EUROPE LOVES LIFE BUT MISSES FOOD YM BAKES BREAD MOM SENDS A BAG OF FLOUR CALLS MOM ONCE A WEEK - MISSES BREAD EXUBERANT, SHARES WITH FRIENDS WHO LOVE IT MORE FLOUR MOM? MOM SENDS BUT NEEDS MONEY YM GETS REGULAR FOOD SHIPMENTS MOM HIRES OUT LAUNDROMAT YM SHIPS WASHER/DRYER YM OPENS FOOD CART MOM FOLDS, DELIVERS, REPAIRS, EXPANDS WHILE YM MAY OPEN SOMALI RESTAURANT SOMEDAY
METHODOLOGY • Focus on migrants in the United States and the United Kingdom • Unit of Analysis: the migrant-owned firm and the foreign market target by international venture • Target market firms that generate at least 25% of their total sales • Questionnaire to be circulated among scholars and representative internationalizing migrant firms • Identification of appropriate respondents and collection of accurate data through trust bridges and collaboration with non-official actors & religious bodies
DISCUSSION • The findings of the study will suggest that migrant owned international ventures can overcome the disadvantages often associated with start-up firms, as well as institutional barriers and other challenges of international marketing, by leveraging the collection of critical orientations and strategies prescribed above, in order to achieve organizational goals and maximize organizational performance.