Social Capital, Geography, and Survival: Gujarati Immigrant Entrepreneurs in the U.S. Lodging Industry

Posted: 9 Nov 2009

See all articles by Wilbur Chung

Wilbur Chung

University of Maryland - Robert H. Smith School of Business

Arturs Kalnins

Cornell University - School of Hotel Administration

Date Written: 2006

Abstract

This study assesses the importance of group membershipforimmigrant entrepreneurs in the lodging industry in Texas. It arguesthat such affiliation, and proximity, offers critical resources for strugglingmembers, thus improving chances of firmsurvival. Severalhypotheses—assuming that survival benefits enjoyed by group members are theresult of social capital—were tested. The data used includes all lodgingestablishments functioning in Texas between 1990 and1999, operated by Gujaratiimmigrant entrepreneurs. The lodging industry was chosen for this study because branded chainaffiliation offers an observable indicator and can contribute to socialcapital. A number of hypotheses were tested using event history analysis. Forevery history analyzed, the variables included motel survival, Gujaratiownership, and measures of Gujarati and non-Gujarati ownership of other hotelsin the proximity of an observed hotel. The findings offer evidence for benefits within groups of immigrantentrepreneurs in the United States. They also suggest the importance of groupmembership and geographic proximity in the immigrant entrepreneur's success,which makes a contribution to the literature of social networks.(CBS)

Keywords: Immigrants, Immigrant firms, Ethnic communities, Firm survival, Hotel & motel industry, Social capital, Franchises, Social networks, Hospitality industry, Firm location

Suggested Citation

Chung, Wilbur C. and Kalnins, Arturs, Social Capital, Geography, and Survival: Gujarati Immigrant Entrepreneurs in the U.S. Lodging Industry (2006). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1502501

Wilbur C. Chung (Contact Author)

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

HOME PAGE: http://www.rhsmith.umd.edu/faculty/wchung/

Arturs Kalnins

Cornell University - School of Hotel Administration ( email )

545D Statler Hall
Ithaca, NY 14853-6902
United States

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