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International New Ventures from Emerging Economies: Network Connectivity and Legitimacy Building

  • Shameen Prashantham (a1), K Kumar (a2) and Sumelika Bhattacharyya (a3)


We develop an integrative perspective on the role of coethnic ties and ties with foreign multinational enterprises (MNEs) – normally studied in isolation of each other – on the perceived legitimacy of international new ventures (INVs) from emerging economies. Building on the notions of people (interpersonal diaspora ties) and pipelines (interorganizational MNE ties) in Lorenzen and Mudambi's connectivity theory of clusters, we argue that these could contribute to the focal INV's internal and external legitimacy, respectively, as it seeks to upgrade its capabilities. We go a step further by highlighting people within pipelines – coethnic managers working in foreign MNEs – as a potentially important catalyst of the focal INV's cross-border legitimacy. Using an illustration of an INV from Bangalore, we note that India offers a fruitful setting – and one that is distinct from China – for future INV research into the role of people, pipelines and, in particular, people within pipelines.


В рамках комплексного подхода, мы изучаем общее влияние этнических связей и связей с иностранными многонациональными предприятиями (МНП), которые обычно изучаются по отдельности, на воспринимаемую легитимность интернациональных новых предприятий (ИНП) из стран с развивающейся экономикой. На основании представления о людях (межличностные связи внутри диаспоры) и системах коммуникаций (межорганизационные связи между МНП) в теории соединения кластеров Лоренцена и Мудамби, мы утверждаем, что эти связи могут способствовать соответственно внутренней и внешней легитимности ИНП, по мере того, как ИНП стремится к модернизации своих возможностей. Мы делаем еще один шаг вперед, подчеркивая роль людей в системах коммуникаций – менеджеров из одной этнической группы, которые работают в иностранных МНП, – в качестве потенциально важного катализатора трансграничной легитимности ИНП. На примере ИНП из Бангалора, мы отмечаем, что Индия представляет богатый материал, отличный от Китая, для будущих исследований по ИНП в отношении роли людей, систем коммуникаций и, в особенности, людей внутри систем коммуникаций.

Desarrollamos una perspectiva integral del rol de los lazos co-étnicos y los lazos con las empresas multinacionales (EMN) -normalmente estudiados de forma aislada – en la legitimidad percibida de las nuevas empresas internacionales (INV) de las economías emergentes. Sobre la base de las nociones de gente (los lazos interpersonales de la diáspora) y conductos (los lazos inter-organizacionales de las EMN) en la teoría de conectividad de clústeres de Lorenzen y Mudambi, discutimos que estos pueden contribuir a la legitimidad interna y externa de la INV central, respectivamente, dado que busca mejorar sus capacidades. Vamos un paso más allá resaltando la gente en los conductos -gerentes de la misma etnia trabajando en EMN extranjeras- como un catalizador importante de la legitimidad transfronteriza de la INV central. Usando una ilustración de una INV de Bangalore, notamos que India ofrece un entorno fructífero -y uno que es distinto de China- para futuras investigaciones sobre el papel de la gente, los conductos, y en particular, la gente en los conductos.

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Corresponding author

Corresponding author: Shameen Prashantham (


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Accepted by: Guest Editors Suresh Bhagavatula and Ram Mudambi, and Deputy Editor Johann Peter Murmann



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International New Ventures from Emerging Economies: Network Connectivity and Legitimacy Building

  • Shameen Prashantham (a1), K Kumar (a2) and Sumelika Bhattacharyya (a3)


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