Diaspora Networks in International Business and Transnational Entrepreneurship – A Literature Review

Abstract

Many underlying developments of globalization should be investigated. Diaspora networks represent an invisible actor in international business (IB), and embody a channel and arena for transnational entrepreneurship (TE). Thus, understanding the development of contemporary diaspora networks and exploring their business potential is important. These networks impact multiple aspects of economic activity, such as investment, entrepreneurship, innovation, expansion, internationalization and creation of international businesses. Despite the multifaceted influence of diaspora networks, little empirical research on their effects has been conducted. This gap may originate in the lack of theoretical and conceptual rigor. In short, the term “diaspora network” remains to be fully discovered in international business. This paper contributes to the literature by increasing the understanding of diaspora networks by reviewing the current literature. The purpose is to enrich the conceptual and theoretical development of IB and TE by connecting them to the emerging field of diaspora entrepreneurship. The paper discusses diaspora networks, illustrates extant theories and research findings, and suggests issues for further research.

Keywords: Diaspora networks, review, international business, international entrepreneurship

JEL Classification: F22