Indian businesses and entrepreneurship globally
Chapter 2: Literature Review 文献综述
Indian traders and merchants have migrated to Southeast Asia since at least the third century (Sandhu, 1969). The South Indians traded food and spices, where else the North Indians, specifically the Gujeratis, Sikhs and Sindhis traded textiles (Brown, 1994). Later, during the British rule, Indians were brought in as labourers.
Initially, immigrants travelled to host countries as temporary migrants. However, over time, the once immigrant population settled in these host countries, such as in Malaya. With the experience from their homeland, they began small businesses to meet the demands of their co-ethnic members. This allowed them to move away from the lowly paid wage-earning occupations to profit-making enterprises such as manufacturing, business and trade (Sandhu, 2006, p. 782).
Entrepreneurship has been a well-known route of upward mobility for many immigrant groups throughout the modern history of advanced capitalist societies. Ethnic entrepreneurship is also increasingly recognized as an important vehicle for economic growth and the regeneration of economies (Assudani, 2009).
A business group, according to Khanna and Rivkin (2001, p.47) is “a set of firms which, though legally independent, are bound together by a constellation of formal and informal ties and are accustomed to taking coordinated action”. Business groups also tend to fill up the institutional voids created by imperfect capital, labor, and product markets. Scholars also observe that group ties enable the affiliated members to reap distinct benefits that are normally not possible by similar non-group firms (Bertrand, Mehta, & Mullainathan, 2002; Kali & Sarkar, 2005; Khanna & Palepu, 2000).
According to Logan et. al (1994, p.693), ‘an ethnic economy could be defined as any situation where common ethnicity provides an economic advantage’. Light and Gold (2000) defined an ethnic economy as an economy where all personnel are of the same ethnicity. Zhou (2004, p. 1040) mentions that ‘ethnic entrepreneurs are often referred to as simultaneously owners and managers of their own businesses, whose group membership is tied to a common cultural heritage or origin and is known to out-group members as having such traits; more importantly, they are intrinsically intertwined in particular social structures in which individual behaviour, social relations, and economic transactions are constrained’.(责任编辑：BUG)