An empirical investigation of immigrant effects: the experience of firms operating in the emerging markets

The immigrant effect consists of the ‘employer’ and the ‘employee’ effect. This study focuses on the ‘employee’ effect. Existing studies on the immigrant effect have identified its contributions to international trade and international marketing management but have not explained under what circumsta...

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Bibliographic Details
Published in:	International business review Vol. 13; no. 6; pp. 705 - 728
Main Author:	Chung, Henry Fuan‐Lin
Format:	Journal Article
Language:	English
Published:	Elsevier Ltd 2004 Elsevier
Series:	International Business Review
Subjects:	Australia Business China Emerging markets Empirical research Enterprises Greater China Immigrant effect Immigrant effect Australia New Zealand Greater China Emerging markets Immigrants New Zealand New Zealand Immigrant effect Australia Greater China Emerging markets
Online Access:	Get full text
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Summary:	The immigrant effect consists of the ‘employer’ and the ‘employee’ effect. This study focuses on the ‘employee’ effect. Existing studies on the immigrant effect have identified its contributions to international trade and international marketing management but have not explained under what circumstances this effect can be used to achieve a firm's objectives when operating in a foreign market. This study explores the profile of the firms which have used this effect to assist their operations in three foreign host markets (China, Hong Kong and Taiwan). Based on the outcomes of a multivariate logistic regression analysis, this study has generated a number of useful findings. Firm size is not suggested as a factor for the selection of immigrant effects. Firms are more likely to adopt an immigrant effect when their products are new to the markets. FDI mode users tend to be more likely to use the immigrant effect. Usage of immigrant effects is also found to be associated with firms from a smaller domestic economy. The immigrant effect is often used to break cultural barriers between home and host markets, but is more helpful when the marketing infrastructure in the home and host markets is similar. The choice of immigrant effect is suggested to have no influence on firms' performance in the host markets.
Bibliography:	ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23
ISSN:	0969-5931 1873-6149
DOI:	10.1016/j.ibusrev.2004.09.001