Publications
Publications
- 2007
- HBS Working Paper Series
Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry
By: Ramana Nanda and Tarun Khanna
Abstract
This study explores the importance of cross-border social networks for entrepreneurs in developing countries by examining ties between the Indian expatriate community and local entrepreneurs in India's software industry. We find that local entrepreneurs who have previously lived outside India rely significantly more on diaspora networks for business leads and financing. This is especially true for entrepreneurs who are based outside software hubs—where getting leads to new businesses and accessing finance is more difficult. Our results provide micro-evidence consistent with a view that cross-border social networks play an important role in helping entrepreneurs to circumvent the barriers arising from imperfect domestic institutions in developing countries.
Keywords
Diasporas; Developing Countries and Economies; Entrepreneurship; Financing and Loans; Cross-Cultural and Cross-Border Issues; Social and Collaborative Networks; Technology Industry; India
Citation
Nanda, Ramana, and Tarun Khanna. "Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry." Harvard Business School Working Paper, No. 08-003, July 2007. (Revised February 2009.)