By Floris Vermeulen
This examine specializes in the emergence and endurance of immigrant firms in host societies. The relevance of immigrant corporations for either the host society and the immigrants themselves has been successfully established in lots of varied reviews. notwithstanding, the query why immigrant corporations emerge and why they generally persist over a protracted interval isn't really properly responded. during this research a comparative procedure is used to bare the structural determinants of the immigrant setting up method. varied theoretical views are mixed (immigration version, social stream concept and the organisational ecology model). it truly is this mix of types, which has no longer but been performed by way of different students, which determines the price of this examine and the contribution to a greater figuring out of the immigrant setting up strategy. A comparative technique is used, analysing Turkish businesses in Amsterdam and Berlin and Surinamese businesses in Amsterdam (1960-2000), to give an explanation for the best way the 3 explanatory types may be mixed in a single coherent rationalization.
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Extra resources for The Immigrant Organising Process
Sample text
In a competitive market the most efficient production process takes place within organisations: they lower the costs of doing business. It is valuable for individuals to establish a firm or to work for one as this allows them to do business more effectively than if they were to carry out the transactions or activity alone. The additional value provided by the organisation overrides the trouble of having set up the organisation. Transaction cost theory explains that organisations tend to expand in size until the cost of conducting a transaction exceeds the cost of acquiring the same exchange in the open market.
By creating a strong coalition they can persuade authorities that their activities are useful and appropriate within the existing social-political system. Cognitive legitimacy is most important for new organisations in the first phase of an organising process. Sociopolitical issues arise in later phases when organisational activities break cultural frames or collide with laws and policy regulation (Aldrich 1999: 259). Legitimacy is not a commodity to be possessed or directly exchanged but is more a condition of the organisational population.
If this accessibility is great, the demand for immigrant organisations decreases. This process is also referred to as the ‘crowding out effect’ of host society institutions (Schover & Vermeulen 2005). If host society institutions display strong attention for immigrant issues, the demand for immigrant organisations may decrease, as immigrants may assume that their concerns are being addressed satisfactorily by established public institutions (Minkoff 1995: 81). On the other hand, if the barriers to entering established host society organisations are high and these organisations do not show any consideration for immigrant issues, the demand for immigrant organisations may increase.