url
11
Jan
2014

Roles of Networks and Social Capital in the Success of International Entrepreneurs: Role of trust

We have analyzed the behavior of the international entrepreneur, the Chinese merchant here in Senegal, as an actor of inter-organizational and interpersonal relationships network; these relationships can be private (family, friends…) or professional. These networks are transnational. International entrepreneurs certainly have contacts in their host countries, but also in their native countries. The best articulation of these two sources of information can ensure success in business. So, going to foreign markets is seen as a process where relations with foreign and domestic actors are established and maintained on an ongoing basis for success.
Several contingent factors may explain the choice to settle abroad:
– Opportunism: Chinese traders coming to settle in Senegal are driven by business opportunities and stability offered by this country. This is consistent with the work of Zhara and George for which the international entrepreneur tries in most cases to seize an opportunity that exists abroad. International Entrepreneurship is in “discovery, engagement, evaluation and exploitation of opportunities beyond national borders to create future goods and services”. Computer usage

–    The characteristics of the entrepreneur (courage and perseverance…)
–    The existence of relationships (friends, acquaintances, parents) in the target country.
These results reinforce and complete the list of factors explaining the choice to undertake abroad. They are factors related to the environment of the entrepreneur, international experience, knowledge of selected countries, the benefits related to internationalization, the benefits of the property and resources of the contractor; for market factors we have also country risk economic and political instability, cultural distance, market potential, competition in the market.
Our work has highlighted the role of networks in order to obtain relevant information for the “survival” in a complex environment. A relational network facilitates access to information about the competition and business opportunities.
If made by peers (by Chinese traders in Senegal), members do not maintain hierarchical relationships. This makes it even easier and fruitful exchanges and cooperation. Therefore, in the network, the exchanges of experience lead to the accumulation of a wealth of information over time and encourage business leaders to have an open mind pushed in a given environment. This type of relationship can help to create mutual support and cooperation between actors, and reduce the feeling of loneliness that may affect peer. In this context, links can be established through formal or informal structures. This is in sorts of Association, Club, Junior Company… An equally important element is trust in the relationship between peers.
Networks have made features that go beyond the formal decision on the structures and forms of organization of the network. When autonomous individuals organize themselves to do something together and when the autonomy and diversity are our “resources” basis, the relationship between different people is the junction of the “existence of the network.” These links are reinforced by the growth of the association. And the association grows through joint work. Working together comes from shared values, values that also need to be revisited and articulated from time to time.

We have analyzed the behavior of the international entrepreneur, the Chinese merchant here in Senegal, as an actor of inter-organizational and interpersonal relationships network; these relationships can be private (family, friends…) or professional. These networks are transnational. International entrepreneurs certainly have contacts in their host countries, but also in their native countries. The best articulation of these two sources of information can ensure success in business. So, going to foreign markets is seen as a process where relations with foreign and domestic actors are established and maintained on an ongoing basis for success. Several contingent factors may explain the choice to settle abroad: – Opportunism: Chinese traders coming to settle in Senegal are driven by business opportunities and stability offered

About The Author

Kevin J. Brandon

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