The influence of capital on transnational migrant entrepreneurship: a set-theoretic approach

Purpose The aim of this article is to explore which forms of capital (financial, human and social) and their combinations constitute sufficient conditions for migrant entrepreneurs to start transnational ventures (maintaining business networks in countries beyond their host nation), as well to understand if and how demographic clusters alter these results. This article provides a qualitative comparative analysis (QCA) on the forms of capital of migrant entrepreneurs in Norway. Design/methodology/approach A qualitative comparative analysis study on 30 migrant entrepreneurs from Norwegian entrepreneurship support programs (ESPs). Data collection is from structured telephone interviews and nonparticipant observation via an entrepreneurship management system that served as an integral part of those ESPs. Using R Studio and the QCA and SetMethods packages, we carried out QCA analysis and cluster analysis to gain insights about which configurations from three forms of capital are sufficient for transnational migrant entrepreneurship outcomes. Via cluster analysis, we examined how well the model could explain the outcome for subsets of the population for details not covered by the configurations. Findings The empirical results demonstrate that transnational migrant entrepreneurship stems from two possible configurations, both involving high levels of human capital, with one configuration having a high level of financial capital and the other having a high level of social capital. The cluster analysis reveals that these results apply to most demographic groups regardless of age, gender, country of origin and reason for moving to Norway. However, the model fits best for those who move to Norway because of a lack of prospects in their home countries. Research limitations/implications The article focuses on Norway and migrant participants of ESPs. Nonmigrant participants and those in programs outside Norway could exhibit different configurations, as could migrant entrepreneurs who do not attend ESPs. Practical implications Policymakers and those running ESPs in Norway can have a better understanding of who is ready to become a transnational migrant entrepreneur based on the forms of capital that they have when expressing interest in an ESP and can offer support accordingly. Social implications Participation in the host country labor market is an important aspect of societal inclusion. Understanding how to support those with an interest in transnational entrepreneurship as a pathway to joining the host country’s labor market can help reach national goals of increasing such inclusion. Originality/value The article contributes towards a better understanding of how forms of capital configure to become sufficient for the outcome of transnational migrant entrepreneurship. By using QCA and clusters analysis, it provides a unique perspective on migrant entrepreneurship support, to help policymakers in understanding the resources that are required for transnational ventures and to help practitioners understand more about demographic differentiation in forms of capital for participants of ESPs. It also contributes to a deeper theoretical understanding of mixed embeddedness, the forms of capital and transnational migrant entrepreneurship, by revealing the interacting dynamics of human, social and financial capital.