Small differences still matter: survivability of ventures owned and operated by transnational migrants through the lens of cultural arbitrage

Abstract

Purpose This study aims to explore the entrepreneur–venture nexus in transnational entrepreneurial ventures conducting operations in culturally similar countries. Theoretically, smaller cultural differences imply fewer challenges inherent to the liability of outsidership, thus facilitating cultural arbitrage activities. However, these minor differences can also hinder learning and increase competition with local firms, threatening the survival of ventures in the host country. To clarify this perspective, the research looks at how entrepreneurs’ resources affect venture survival, focusing on transnational entrepreneurs operating in countries that have relatively small cultural differences from their own. Design/methodology/approach This research is outlined by the capital approach in entrepreneurial opportunity development through a qualitative configurational design. Findings The results indicate that there are four strategies for achieving venture survivability for transnational entrepreneurship operations in culturally similar countries. This is reflected in both the core configurations associated with long-term venture survivability and in the model of venture survivability for cultural arbitrage opportunity development. Originality/value This study’s findings, which include the configurations and the model, speak to the burgeoning conversation of cultural arbitrage by illuminating venture survival strategies for international entrepreneurs operating in countries similar to their home countries. They are relevant for the international entrepreneurship discourse and the larger conversation in entrepreneurship, focusing on the entrepreneur–venture nexus.