Perspectives on Necessity-Driven Immigrant Entrepreneurship: Interactions with Entrepreneurial Ecosystems through the Lens of Dynamic Capabilities

Abstract

This paper explores the interaction between immigrant small and medium-sized enterprises (SMEs) and the entrepreneurial ecosystems of their home and host countries. These SMEs, often established out of necessity due to economic hardship or unemployment, contrast with opportunity-driven ventures that seek to exploit new market prospects. Employing a dynamic capabilities framework, the study investigates how immigrant SMEs identify and mobilize critical resources in unstable environments, and how these resources are dynamically adapted and transformed to meet organizational objectives while responding to ecosystem changes, ultimately cultivating competitive advantages. Interviews were conducted with 25 immigrant entrepreneurs from eight countries, and the interviews took place within their business environments, with native speakers of the interviewees′ home countries present to ensure accuracy and authenticity. The findings highlight that immigrant entrepreneurs effectively leverage resources from both home and host country ecosystems, with human capital being the most essential asset. Additionally, the role of immigrants′ social networks is emphasized as a crucial mechanism for resource acquisition. This study further illustrates the positive contributions of immigrant enterprises to entrepreneurial ecosystems, revealing a co-evolutionary relationship whereby the businesses and ecosystems both mutually evolve. This co-evolution strengthens the resilience and sustainability of immigrant ventures, significantly enhancing their long-term success.

1. Introduction

In many countries, immigration and immigrant entrepreneurship are dual key drivers of sustainable prosperity [1]. Due to immigrant entrepreneurs’ knowledge of both their host countries and countries of origin, they have made unique contributions to globalization and international business [2]. However, among the various types of immigrants, necessity-driven entrepreneurship emerges when individuals have no other employment options and turn to entrepreneurship as a means of income generation [3]. As immigrant entrepreneurial activities flourish in major industrial areas or metropolitan regions worldwide, scholars have proposed new conceptual frameworks that combine the ecological perspectives of the natural sciences, introducing the concept of “entrepreneurial ecosystems”. This approach emphasizes the regional and environmental context in which entrepreneurs operate, as well as the interactions between entrepreneurs and various stakeholders throughout the entrepreneurial development process [4]. However, there is currently a lack of in-depth research on how necessity-driven immigrant entrepreneurs acquire resources from both host and home countries and utilize synergies to establish and grow their businesses.

Taiwan’s immigration history, marked by large-scale waves of immigration from China in the 17th century and 1949, as well as the influx from Southeast Asia since the 1980s, has profoundly shaped Taiwanese society. These new residents often face challenges in employment due to language barriers, cultural differences, and stringent legal restrictions, prompting many to seek small-scale entrepreneurial ventures to achieve economic independence and family support. This study aims to address the following questions:

How do necessity-driven immigrant entrepreneurs acquire resources within their home and host country ecosystems?

How do necessity-driven immigrants leverage their dynamic capabilities to access ecosystem resources and undergo transformative processes?

This study involved interviews with 25 immigrant entrepreneurs from eight different countries, with each interview conducted in the entrepreneurs’ business environments. To ensure accuracy and authenticity, native speakers of the languages of the interviewees’ respective home countries were present throughout the interview process. Through this approach, this research explores the interaction between immigrant SMEs in Taiwan and the entrepreneurial ecosystems of both their home and host countries. Using the dynamic capabilities framework, this study examines how necessity-driven immigrant entrepreneurs identify and acquire the resources needed for growth in volatile environments. It also delves into how these resources are dynamically transformed to align with organizational needs and how they are adjusted to establish competitive advantages in response to shifts within the entrepreneurial ecosystem. This research aims to address the gap in the literature surrounding necessity-driven immigrant entrepreneurship and contribute to the rapidly expanding field of immigrant entrepreneurship through the lens of entrepreneurial ecosystems.

2. Literature Review

2.1. Immigrants and Entrepreneurial Ecosystems

Studies on immigrant entrepreneurship have primarily examined individual aspects (e.g., personal traits and human capital) and the business environment (e.g., local socioeconomic conditions, political systems, and cultural settings). Recently, the “entrepreneurial ecosystem” concept has gained traction in academic research and policymaking [5,6]. This concept emphasizes interactions and synergies between entrepreneurial activities and actors within a region, fostering local entrepreneurship and innovation [7,8]. It highlights how various actors support businesses by providing crucial resources such as knowledge, talent, and capital.

In immigrant entrepreneurship, entrepreneurs are influenced by both host and home countries, engaging in dual entrepreneurial ecosystems (DEEs). Researchers and policymakers increasingly acknowledge the significant contributions of immigrant entrepreneurship to economic development in both contexts [4,9]. The dual resources and support provided by these ecosystems are crucial for immigrant entrepreneurs’ success [10,11]. These dynamic interactions offer broader opportunities and resources, enhancing entrepreneurial activities. For instance, the socio-cultural environment of the home country may provide emotional support, while the host country offers advanced infrastructure and market opportunities [12].

Despite their importance, significant gaps remain in understanding the full impact of these dual ecosystems. Current research often overlooks the dynamic interactions within and between ecosystems, limiting the applicability of findings [13,14]. Understanding these interactions can enrich entrepreneurial ecosystem theory and aid in developing effective policies, promoting sustainable global entrepreneurship. Supporting the dynamic needs of immigrant entrepreneurs can enhance innovation, economic growth, and social integration across regions.

2.2. Elements of Entrepreneurial Ecosystems and Their Application in Immigrant Entrepreneurship

Existing literature has extensively discussed entrepreneurial ecosystems; however, the majority of studies tend to examine the intrinsic characteristics and features of individual components, such as cultural, economic, and political elements. These studies often overlook the interdependencies and interactions among these elements and how they collectively create and sustain the entire ecosystem [9]. In the context of immigrant entrepreneurship, where diverse cultural values and norms intersect, the implementation of dynamic capabilities involves additional complexities, including the need for cultural intelligence and multicultural leadership [15,16]. These competencies allow entrepreneurs to navigate multicultural environments effectively, making them essential in today’s increasingly globalized business landscape.

The Isenberg Model of entrepreneurial ecosystems has attracted increasing scholarly attention for its relevance to understanding the dynamics of immigrant entrepreneurship, particularly in contexts where immigrants navigate dual ecosystems—those of both their host and home countries. Immigrant entrepreneurs are uniquely positioned to benefit from the interaction of these ecosystems, which can lead to enhanced entrepreneurial activity and higher success rates [17]. A key factor in this process is the ability to mobilize resources across both ecosystems, such as accessing financial capital from their home country while simultaneously managing the regulatory and business frameworks of the host country [18]. Cultural factors also play a critical role, as societal attitudes toward entrepreneurship in both ecosystems influence immigrants’ willingness to engage in business ventures. The Isenberg Model emphasizes how these cultural elements shape entrepreneurial behavior, underscoring the need for supportive cultural environments that encourage immigrant entrepreneurship [19]. Policymakers can play a significant role in fostering such environments by addressing local conditions and the distinct needs of immigrant entrepreneurs, which includes improving access to financial resources, promoting cultural acceptance, and offering targeted support services. These efforts can significantly enhance the integration and success of immigrant entrepreneurs within the broader entrepreneurial ecosystem [4].

An effective entrepreneurial ecosystem comprises several key elements that work synergistically to foster entrepreneurship and innovation. According to Isenberg [20], these elements include cultural factors, financial resources, market access, human capital, government policies, and support systems.

• Cultural Integration: Immigrant entrepreneurs often bring diverse cultural perspectives that can enrich the entrepreneurial culture of the host country. Their success stories can also serve as inspiration for both local and other immigrant entrepreneurs [21];
• Access to Financial Resources: Immigrant entrepreneurs might have access to financial capital from both their host and home countries, including ethnic community financing, which can be a significant advantage [20];
• Market Opportunities: Immigrant entrepreneurs can exploit market opportunities in both the host and home countries, offering unique products and services that cater to niche markets [22];
• Utilizing Human Capital: Immigrants often utilize their own community networks to find skilled labor and leverage educational opportunities in the host country to enhance their business operations [23];
• Navigating Government Policies: Immigrants may face unique challenges and opportunities in dealing with government policies. They must navigate both the regulatory environment of the host country and any relevant policies from their home country, which can influence their business strategies [24];
• Support Networks: They benefit from a range of support systems including ethnic community organizations, diaspora networks, and mainstream business support services that provide critical assistance for business development [25].

By examining the interactions between immigrant entrepreneurs and the elements of entrepreneurial ecosystems, it becomes clear that the capabilities of these entrepreneurs are crucial for their success. They must continually adapt, integrate new knowledge, and reconfigure resources to maintain a competitive advantage in the rapidly changing business environment [26].

2.3. Entrepreneurship and Dynamic Capabilities

The study of entrepreneurial ecosystems has garnered significant attention, with extensive research exploring various components such as culture, finance, and markets [9]. However, these studies often overlook the interdependencies and interactions between these elements and their cumulative impact on the overall ecosystem. The dynamic nature of entrepreneurial ecosystems necessitates a comprehensive understanding of resource flows and creation within the system [14,27].

The concept of “dynamic capabilities”, introduced by Teece et al. [28], refers to a firm’s ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments. This concept emphasizes the continuous renewal of capacities to adapt to environmental changes, highlighting the modification, integration, and reconfiguration of both internal and external skills and resources to meet new demands [29]. Teece and colleagues delineate dynamic capabilities into three core components: processes, positions, and paths.

Processes involve the methods and routines firms use to coordinate tasks, integrate resources, and facilitate organizational learning. Effective processes enable firms to leverage their existing capabilities while continually adapting to new challenges [30].

Position refers to the firm’s strategic assets, including technological capabilities, intellectual property, and relationships with external partners. These assets form the foundation of a firm’s competitive advantage and its ability to exploit market opportunities [31].

Paths are the strategic trajectories available to the firm, shaped by its historical development and accumulated capabilities. Path dependency highlights how past investments and learning experiences influence current strategic options and future opportunities [32,33].

The dynamic capabilities framework is particularly pertinent for understanding necessity-driven immigrant entrepreneurship. Immigrant entrepreneurs must leverage their unique assets and capabilities within both their home and host country ecosystems. By identifying and exploiting dynamic capabilities, these entrepreneurs can secure their position within the ecosystem and actively shape and transform it to achieve sustained competitive advantage [34].

Our research aims to integrate dynamic capabilities theory into the study of entrepreneurial ecosystems, to provide a nuanced understanding of how firms, particularly those led by immigrants, can thrive in complex and evolving environments. This perspective underscores the importance of continuous learning, adaptability, and strategic resource management. Immigrant entrepreneurs, through effective asset positioning and dynamic capabilities, can transform initial survival strategies into robust frameworks for long-term success, ultimately contributing to the resilience and vibrancy of the entrepreneurial ecosystems in which they operate.

3. Research Methodology

3.1. Theoretical Framework and Research Methods

This study adopted a semi-structured interview approach, which is a valuable qualitative research method for exploring participants’ experiences and perceptions in depth. Semi-structured interviews, in particular, offer the flexibility needed to adapt questions dynamically based on participant responses, enabling the researcher to delve into more nuanced insights that may not emerge from rigid, structured formats. By actively engaging with the data and applying contextual expertise during the analysis, researchers can better capture the subtleties of human interactions and meanings that arise during interviews. This approach leads to a richer and more contextualized understanding of the phenomena under study, particularly in areas that are not easily quantifiable [35]. This human element is crucial for uncovering the complexities of participant experiences and translating them into meaningful insights that contribute to the research objectives. This research targeted necessity-driven immigrant startups and adopted a multiple case study approach to thoroughly analyze how these enterprises interact with the entrepreneurial ecosystems of their home and host countries. The use of multiple case studies enhances the depth and reliability of the research [36].

By analyzing twenty-five necessity-driven immigrant startups that actively engage with both their home and host countries, this study seeks to understand how immigrant entrepreneurs have leveraged their unique transnational experiences and multicultural backgrounds to identify and exploit entrepreneurial opportunities within both ecosystems. Their dynamic capabilities, particularly in relation to opportunity recognition, resource mobilization, and continuous innovation, are critical for achieving sustained competitive advantage. Figure 1 presents the conceptual framework for this study.

3.2. Data Collection

This study gathers firsthand information from immigrant entrepreneurs on their company formation, strategic choices, and resource allocation, aiming to understand how they acquire critical resources within both home and host country entrepreneurial ecosystems. The research incorporates the perspectives of other ecosystem stakeholders, such as venture capitalists and incubators, alongside secondary data, ensuring a comprehensive and authentic analysis. The qualitative approach employed here enables an in-depth exploration of the complex behaviors and interactions that take place in the entrepreneurs’ natural settings.

To capture participants’ real-time experiences and reflections, semi-structured interviews were conducted. These interviews addressed topics such as resource acquisition, business integration, challenges, and personal preferences. Hypothetical “what if” scenarios were used to contrast actual experiences with potential alternatives, providing insights into participants’ motivations and strategic thinking. Each interview, lasting between 90 and 180 min, was conducted in the participant’s native language to facilitate detailed expression, with recordings transcribed verbatim into Chinese to preserve authenticity.

3.3. Research Design and Sample Analysis

The study focused on 25 cases of necessity-driven immigrant entrepreneurship, where individuals pursued entrepreneurship due to limited employment options. Such immigrants often choose familiar sectors or those with low entry barriers that require minimal startup capital and fewer specialized skills. Participants were selected through purposive sampling, ensuring a diverse and representative sample that included individuals featured in media or recognized by immigration agencies. Consent was obtained for public use of interview content.

The sample consisted of 25 immigrant entrepreneurs from eight countries—China, Vietnam, Indonesia, Thailand, Cambodia, the Philippines, Malaysia, and Turkey—predominantly female, aged 23 to 52. Common industries represented include food services, beauty salons, human resources, agriculture, and construction.

Although the interview sample spanned a diverse array of industries, the findings can be distilled into three main categories of immigrant entrepreneurship:

• Low Entry Barriers and Co-national Demand: This category includes industries with minimal capital and qualification requirements, allowing immigrants to quickly establish a presence and meet the needs of their community.
• Bridging Home and Host Countries: This group consists of businesses focused on bridging trade gaps between the immigrant’s home and host countries, leveraging cultural and market knowledge from both contexts.
• Industry-Specific Startups Addressing Labor Shortages: These ventures focus on sectors like agriculture and aquaculture, which often face labor shortages in the host country, providing a niche that immigrant entrepreneurs can fill.

Despite the limited sample of 25 cases, the examples encompassed a broad spectrum of successful, necessity-driven immigrant entrepreneurial activities. The data collection process also found that high-capital, skill-intensive industries, such as technology or manufacturing, pose significant barriers for necessity-driven entrepreneurs. These sectors require substantial investments, specialized skills, and strong networks, making it more challenging for necessity-driven immigrant entrepreneurs to succeed. This study enriches the understanding of immigrant entrepreneurship within entrepreneurial ecosystems, shedding light on the strategies that necessity-driven immigrant entrepreneurs from diverse national and industry backgrounds employ when confronting similar challenges.

4. Findings

4.1. Immigrant Entrepreneurs and Entrepreneurial Ecosystem Interactions

Immigrant entrepreneurs interact with entrepreneurial ecosystems to build unique asset positioning. According to the literature, entrepreneurial ecosystems encompass six key dimensions: culture, government policies, financial resources, human capital, market opportunities, and support networks. Additionally, Teece et al. [28] identified eight types of non-tradable specialized assets: reputational, structural, financial, market, complementary, technological, institutional assets, and organizational boundaries. Immigrants acquire these assets through the entrepreneurial ecosystem, creating a unique positioning for their enterprises.

4.1.1. Culture

Culture encompasses all social characteristics of a society and the subjective conditions related to human interactions and behaviors. It provides existing rules, values, or atmospheres associated with entrepreneurship, such as a favorable entrepreneurial climate, routine entrepreneurial activities, encouragement from the government and universities, and successful entrepreneurial role models. In essence, society recognizes entrepreneurship as an honorable endeavor and celebrates entrepreneurial success stories.

If immigrants come from countries with strong entrepreneurial cultures, details of their entrepreneurial achievements abroad are likely to be widely disseminated in their home countries. In the age of social networks, these success stories can quickly spread, enhancing the immigrant entrepreneur’s reputational assets. This cultural recognition can also influence consumers in the home country, expanding the market reach of the immigrant’s business. Interviewees highlighted the reputational and market assets derived from entrepreneurial culture:

“Once the company was on track, social media and media coverage raised our image and visibility in Indonesia.” (Int 2)

“My entrepreneurial story in Taiwan, promoted through media, became well-known in Vietnam, boosting our company’s visibility. Consumers were more willing to try our products and even make cross-border purchases.” (Int 5)

Moreover, the presence of an entrepreneurial culture or a culturally inclusive environment in the host country can significantly benefit immigrants. It facilitates both living and entrepreneurial activities, allowing immigrant entrepreneurs to build reputational assets through their success stories and entrepreneurial journeys. This cultural environment can attract both immigrants and local consumers, creating a unique business atmosphere that is difficult for other local firms to replicate.

“After influencers promoted my store and entrepreneurial story, many Taiwanese people became aware of my store and products and were willing to try our food.” (Int 3)

The findings align with the existing literature, which emphasizes the importance of cultural capital in enhancing entrepreneurial success [21,37,38]. Immigrant entrepreneurs leverage the cultural attributes of both their home and host countries to build competitive advantages, integrating these cultural elements into their business strategies to achieve sustained growth and recognition.

4.1.2. Financial Resources

Access to financial capital is critical for entrepreneurs, particularly immigrant entrepreneurs who can obtain initial funding from both their home and host countries. Funding from the home country typically comes from family and friends, who are often eager to support the entrepreneur’s endeavors abroad. For instance, one interviewee stated:

“I borrowed some money from family and friends in Vietnam to start my business; they were very supportive of my entrepreneurship in Taiwan.” (Int 8)

“My family and friends in Thailand were very willing to support me once they heard about my business venture in Taiwan, which helped smooth my operations.” (Int 1)

Another interviewee highlighted the collaboration with local partners for business funding:

“I started a brokerage firm that includes business in Indonesia, so I partnered with locals there to raise funds and establish the company.” (Int 22)

In the host country, the sources of funding are more diverse. In addition to support from local family and friends, immigrants can access government grants, subsidies, and financial support from competitions and support organizations. Notably, financial backing from the host country’s government or support units can also enhance the immigrant entrepreneur’s reputational capital, signaling trust and credibility to potential customers and partners.

“My local friends in Taiwan sponsored me to buy raw materials, giving me some extra funds to kickstart my business.” (Int 9)

“We applied for entrepreneurial guidance from NGO groups in Taiwan and received some financial subsidies.” (Int 1)

“After receiving guidance and subsidies from government agencies, our company gained more trust in Taiwan, almost like a government endorsement.” (Int 23)

“We participated in an association’s entrepreneurial competition, which not only provided us with funding but also increased our company’s visibility.” (Int 25)

These findings align with the literature on immigrant entrepreneurship, which emphasizes the critical role of financial capital in the early stages of business development [12]. Support from both home and host countries can significantly enhance the financial stability and credibility of immigrant businesses, facilitating their growth and integration into the entrepreneurial ecosystem. This dual-source financial support underscores the importance of leveraging transnational networks and local resources to build a sustainable business foundation.

4.1.3. Market Opportunities

Recognizing and leveraging market opportunities is a crucial driver of business growth. Immigrant entrepreneurs need to target markets that are open, where consumers have a high acceptance rate and a good user experience. By promoting their products through immigrant and migrant worker communities, immigrant entrepreneurs can achieve unique market positioning. Taiwanese goods, known for their quality, can help build strong reputational capital.

“Our company leverages the promotion by Vietnamese immigrants and migrant workers to reach different consumer segments in the Vietnamese market that other competitors cannot access.” (Int 18)

“Through promotion on Vietnamese social networks, local people in Vietnam are aware of our products and perceive Taiwanese quality as superior, willing to make cross-border purchases.” (Int 8)

In the initial stages of immigrant entrepreneurship, catering to the homeland nostalgia of immigrants in the host country or understanding the needs of both the home and host countries can strengthen market positioning. This helps in efficiently acquiring customers and creating unique market capital. Early market relationships also contribute to building strong reputational capital.

“We offer authentic Thai cuisine that Thai people in Taiwan love, making them feel at home. Taiwanese customers also enjoy it, saying it feels like being in Thailand.” (Int 1)

“Customers in our store feel the genuine Bali ambiance, which is different from the typical Balinese theme emphasized by other Taiwanese stores. They prefer our authenticity.” (Int 13)

“Taiwanese consumers appreciate the hard work behind our fruit cultivation process and are willing to try our fruits. They also promote our hardworking image, helping us establish a good reputation.” (Int 4)

Immigrant entrepreneurs can effectively utilize their unique cultural insights and connections to tap into niche markets, enhancing their competitive advantage and market reach [22,23]. By leveraging their dual embeddedness in both home and host country contexts, they can create distinctive value propositions that resonate with diverse consumer groups, thereby fostering business growth and sustainability.

4.1.4. Human Capital

Human capital, composed of skilled and knowledgeable teams, is crucial for immigrant entrepreneurs. They often hire talent from their home countries, fostering long-term stable collaborations and building strong reputational assets. These employees understand the sentiments of fellow immigrants, reinforcing the market positioning and efficiently acquiring unique market capital. Home country human capital provides technical expertise and diverse skills, enhancing the organization’s operational scope and technological capabilities, thus contributing technological assets as well as complementary assets and expanding organizational boundaries.

“We hire immigrants and collaborate with suppliers from our home country, boosting our reputation. Consumers appreciate that we remain connected to our roots while succeeding abroad.” (Int 9)

“Through online connections with partners in Vietnam, we can diversify and localize our product flavors.” (Int 19)

“Collaborating with suppliers and personnel in Turkey enables us to develop a broader range of products and services.” (Int 7)

“Employing Southeast Asian immigrants allows our store to cater to a diverse consumer base.” (Int 6)

Human capital also plays a significant role in interactions with the host country. Hiring local talent helps establish credibility, integrate into the local market, and serve more local consumers. Local human capital provides technical skills and different competencies, transforming the organization’s operational scope and internal structure, thus enabling them to acquire technological assets and other complementary assets, while expanding organizational boundaries. Notably, local employees often come from diverse cultural backgrounds, promoting organizational diversity and inclusivity.

“With Taiwanese employees, consumers see us as a more localized international store.” (Int 2)

“We collaborate with local Taiwanese tech firms to manage our social media operations.” (Int 11)

“We hire Taiwanese staff who can effectively communicate with local consumers. Their presence has led me to rethink our internal structure, fostering a more diverse and creative environment by pairing employees of different nationalities.” (Int 6)

These findings align with the literature on the significance of human capital in entrepreneurial success [39]. The integration of diverse skills and cultural insights from both home and host countries enhances the innovative capabilities and market adaptability of immigrant enterprises [23]. By leveraging their unique human capital, immigrant entrepreneurs can create dynamic and competitive organizations that thrive in multicultural environments. This dual approach to human capital not only strengthens the entrepreneurial ecosystem but also contributes to a more inclusive and innovative business landscape [22].

4.1.5. Government Policy

Government policies play a crucial role in supporting and encouraging entrepreneurial activities by establishing regulations and laws to promote entrepreneurship and eliminate fundamental barriers. Immigrant entrepreneurs are significantly influenced by the host country’s policies. By collaborating with the government, participating in advisory programs, or applying for grants and subsidies, they can build a solid reputation, gain consumer trust, and foster collaborations with other businesses. Furthermore, these interactions help immigrant entrepreneurs better understand the host country’s legal framework and establish robust organizational structures.

“Participating in government programs can enhance our visibility. When consumers know we are part of government initiatives, they tend to trust our products more.” (Int 5)

“Government guidance helps us better understand Taiwan’s laws, allowing us to create suitable systems that comply with regulations and meet public expectations.” (Int 6)

Engagement with government initiatives not only builds trust but also aligns businesses with legal and societal norms. This alignment is crucial for immigrant entrepreneurs, as it bridges the gap between their original business practices and the host country’s regulatory environment. The literature supports the notion that policy frameworks and government support can significantly impact the success and sustainability of immigrant enterprises [21,24].

4.1.6. Support Networks

Support factors such as infrastructure, professional service units, private institutions, and academic research organizations play a pivotal role in the success of immigrant entrepreneurs. These entrepreneurs often interact more frequently with support entities in the host country, such as academic and research institutions or trade associations, to establish a solid reputation and build trust with other businesses.

“Collaborating with Taiwanese academic and research institutions allows us to understand advanced technologies and develop new products.” (Int 2)

“Participating in relevant entrepreneurial programs helps gain consumer recognition and increases our visibility, turning them into loyal customers.” (Int 11)

“Through associations and trade groups in Taiwan, we can meet more potential partners and refine our business offerings, such as data analysis services.” (Int 24)

Support from local infrastructure and professional services is crucial for immigrant entrepreneurs. Engaging with academic institutions not only provides access to cutting-edge technologies but also helps tailor innovations to market needs, establishing a competitive edge [40]. Moreover, participation in industry associations and professional networks enhances business credibility and trust, which is essential for long-term sustainability and growth [20].

By strategically leveraging these support factors, immigrant entrepreneurs can effectively integrate into the host country’s business ecosystem, gain access to critical resources, and foster collaborative relationships that drive innovation and business success. This alignment with local support structures underscores the importance of a well-rounded approach to building a robust entrepreneurial ecosystem [8].

4.1.7. Summary

The interview results revealed that immigrant entrepreneurs acquired resources from their home countries’ entrepreneurial cultures, financial support, market opportunities, and human capital, transforming these into unique assets. Among these, human capital emerged as the most significant resource, playing a critical role in the strategic success of immigrant entrepreneurs [23].

Table 1. Positioning Acquired from the Home Country’s Entrepreneurial Ecosystem.

	Ecosystem	Culture	Financial Resources	Market Opportunities	Human Capital	Government Policies	Support Factors
Position
Reputational Assets		✓		✓	✓
Structural Assets
Financial Assets			✓
Market Assets		✓		✓	✓
Complementary Assets					✓
Technological Assets					✓
Organizational Boundaries					✓
Institutional Assets

Checkmarks indicate the unique assets position acquired from the ecosystem. Source: Authors’ own research.

presents the asset positioning that immigrant entrepreneurs have obtained from the entrepreneurial ecosystems of their home countries. In addition, immigrants draw resources from the entrepreneurial ecosystem of the host country, including entrepreneurial culture, financial support, market opportunities, and human capital. Unlike the home country’s ecosystem, the host country’s ecosystem also provides government policies and support factors.

Table 2. Positioning Acquired from the Host Country’s Entrepreneurial Ecosystem.

	Ecosystem	Culture	Financial Resources	Market Opportunities	Human Capital	Government Policies	Support Factors
Position
Reputational Assets		✓	✓	✓	✓	✓	✓
Structural Assets					✓
Financial Assets			✓			✓
Market Assets		✓		✓	✓		✓
Complementary Assets					✓		✓
Technological Assets					✓		✓
Organizational Boundaries					✓
Institutional Assets						✓

Checkmarks indicate the unique assets position acquired from the ecosystem. Source: Authors’ own research.

presents the asset positioning that immigrant entrepreneurs obtain from the entrepreneurial ecosystem of the host country.

The findings indicate that human capital remains the most abundant resource acquired by immigrant entrepreneurs, highlighting its pivotal role in influencing the market, technology, and organizational aspects of their ventures [31,41]. The dual sourcing of resources from both home and host countries enriches the entrepreneurial strategies of immigrants, providing them with a competitive edge in a dynamic business environment [11,42].

4.2. The Influence of Evolutionary Path Elements on Enterprise Positioning

The preceding sections have analyzed how immigrant entrepreneurs acquire resources from external entrepreneurial ecosystems to establish or strengthen their unique assets, thereby achieving the “positioning” element of dynamic capabilities. This section discusses how entrepreneurs accomplish the positioning element shaped by unique assets, focusing on the process known as the “path”, influenced by the factors of path dependency and technological opportunity.

Path dependency refers to the ways in which a company’s historical decisions, practices, and accumulated experiences influence its current position and future directions [43]. Technological opportunity, on the other hand, pertains to the potential for technological advancements to open up new avenues for business growth and innovation. It involves recognizing and capitalizing on new technological trends and integrating them into the firm’s operations to maintain a competitive edge.

4.2.1. Path Dependency

Path dependency refers to the process that a company undergoes from its inception to its current state, encompassing accumulated experiences in R&D, production, marketing, and internal organization. These experiences influence the company’s current position and future development. Immigrant entrepreneurs often have limited resources and rely heavily on their past experiences and existing networks from their home countries. This reliance shapes their initial business strategies and affects their resource allocation decisions. Over time, as they interact with the entrepreneurial ecosystem in the host country, these entrepreneurs adjust and refine their strategies, integrating new knowledge and resources while maintaining connections with their original pathways. Mahoney [43] asserts that past decisions, decision-making principles, and tacit experiences derived from personal history form the genetic makeup of a company, influencing the path dependency process and subsequently impacting competitive advantage. The pathways of new immigrant enterprises can generally be categorized into three types:

• Service-Oriented Startups for Co-Nationals

The first type of immigrant entrepreneurship typically starts with a strategy focused on serving fellow immigrants in the host country. These businesses often include restaurants, beauty salons, general merchandise stores, and cultural industries. The entrepreneurs rely heavily on their personal networks for customer development, drawing clients from both the host country and their home country. Their initial funding, talent cultivation, and organizational development strategies are also heavily influenced by personal experiences. For instance, the difficulty of obtaining loans in Taiwan affects subsequent funding choices, and personal expertise and experiences are used to train immigrant employees and form strategic alliances with suppliers and partners in both the home and host countries. Once a market foundation is established, these businesses expand their products or services to cater to mainstream consumers.

2.

Trade-Focused Startups Bridging Home and Host Countries

The second type of immigrant enterprise inherently focuses on addressing the trade gaps between the home and host countries. These businesses leverage the immigrant’s understanding of their home country’s information, language, and culture to fill the demand gaps in the host country. Such enterprises often involve translation services and manpower agencies. These businesses rely on the founder’s experience and knowledge of both the home and host countries to identify and penetrate niche markets in the host country. The cumulative path dependency process enhances technological capabilities. Hence, industries like translation and human resources benefit from deep knowledge of both cultures and regulations, enabling enterprises to evolve into specialized service providers, thereby creating unique asset positions through path dependency.

3.

Industry-Specific Startups Addressing Labor Shortages

The third type focuses on industries experiencing labor shortages in the host country, such as agriculture and aquaculture. These entrepreneurs bring a strong work ethic and relevant experience from their home countries, applying agricultural or aquacultural techniques or learning new technologies to be used in primary industries. These businesses start with a focus on basic agricultural production and, as they achieve foundational success, expand into smart agriculture or marketing-oriented refined primary industries. They continue to develop successful products and establish specific problem-solving routines, generating path-dependent effects that lead to unique asset positions for the enterprise.

4.2.2. Technological Opportunities

Past technological opportunities within a firm significantly influence its ongoing industrial behavior in specific domains. Research and development (R&D) activities among competitors can also impact the depth and breadth of each other’s technological opportunities. These opportunities are not solely external but can also originate from the firm’s own R&D or innovation activities. Additionally, foundational scientific research institutions related to the organization can assist in identifying new technological opportunities [44]. For immigrant entrepreneurs, technological opportunities arise from both their home and host countries, providing them with a dual advantage. This dual-source approach enables them to develop unique products and services that differentiate them from local competitors.

• Service-Oriented Startups for Co-Nationals

The first type of immigrant enterprise typically employs technology that is not market-leading but is inherited from the immigrants’ home country, such as in restaurants and beauty salons. Initially, these businesses cater to the nostalgic needs of fellow immigrants by providing familiar products and services. Over time, they integrate local ingredients, techniques, or materials from the host country, thereby creating more distinctive products and services that expand their market reach. In response to external opportunities, these immigrant entrepreneurs develop suitable products and services to meet market demands, refining their technological and customization capabilities. The interplay between internal and external technological opportunities and the resulting products and services shapes the enterprise’s positioning.

2.

Trade-Focused Startups Bridging Home and Host Countries

The second type of enterprise leverages knowledge from the home country to fill gaps in the host country’s market. For example, in the translation industry, immigrant translators assist importers and exporters by understanding the legal differences between the home and host countries, offering more nuanced services than mere language translation.

Moreover, the technological opportunities created internally by the firm and those brought about by external technological trends significantly influence the type and sequence of resources these enterprises acquire from external sources. For instance, with the rising demand for foreign workers in Taiwan and the advent of AI technology, many companies have invested heavily in translation software, creating a lucrative market opportunity. Immigrant translation firms identify these external opportunities and leverage financing and talent to invest in specialized translation fields, choosing suitable AI software to provide more precise and personalized services. Internal and external technological opportunities shape firms’ products and service models, influencing their choice of partners, investment institutions, and entrepreneurial support organizations, ultimately forming the positioning element of dynamic capabilities.

3.

Industry-Specific Startups Addressing Labor Shortages

The third type of enterprise utilizes either home country or host country technology to enhance agricultural or aquacultural productivity in the host country. These entrepreneurs often apply agricultural or aquacultural techniques from their home countries or adopt new technologies, using them in primary industries. They start with basic agricultural production and, as they achieve foundational success, expand into smart agriculture or marketing-oriented refined primary industries. This ongoing development of successful products and problem-solving routines creates path-dependent effects, generating unique asset positions for the enterprise. The interplay between internal and external technological opportunities and the resulting products and services shapes the enterprise’s positioning.

4.3. Asset Positioning and Evolutionary Path Shaping Organizational and Management Process Elements

New immigrant enterprises, based on the positioning constructed from their unique non-transferable assets, are influenced by path dependence and technological opportunities. These influences ultimately shape their organizational processes and routines. “Processes” refer to the organizational and management routines of the enterprise, including the capabilities of coordination/integration, learning, and reconfiguration/transformation.

4.3.1. Coordination/Integration

Regardless of the type of new immigrant enterprise, in the initial stages, they quickly adjust to external information, absorbing and integrating information from external markets, partners, academic and research institutions, and government sources. This information is rapidly incorporated into organizations to integrate resources, technology, information, and personnel. They also integrate information from their home countries and the host country, such as finding long-term key partners and using different methods to maintain diverse customer groups to uphold customer relationships.

“We hire immigrants and collaborate with suppliers from our home country, which has helped build a strong reputation. People see that we’re successful while still staying connected to our roots.” (Int 7)

“By employing Vietnamese immigrants, we’re able to expand our market reach and serve more customers.” (Int 8)

“We also have partnerships with IT firms in Vietnam, which allows us to communicate effectively and market our products internationally.” (Int 18)

New immigrant enterprises achieve high efficiency and effectiveness in internal coordination and integration mainly due to their relatively flat organizational structure, which facilitates rapid communication and good interactions between supervisors and employees. They often hire employees with similar backgrounds, which results in smoother communication.

4.3.2. Learning

The learning direction varies among different types of immigrant enterprises. However, in general, the learning processes of new immigrant enterprises encompass the enhancement of both personal and organizational skills, as well as learning from and growing alongside competitors. Currently, the government offers various training programs tailored for new immigrants to bridge gaps in information, technology, and skills, thereby enhancing their competitiveness in the host country. At both the personal and organizational levels, business owners directly guide and train employees in business skills and operational concepts to avoid information gaps. From a competitive standpoint, new immigrant enterprises continuously observe their competitors, absorbing lessons from their successes and failures and dynamically adjusting their own positioning.

“We learned about Taiwanese preferences from local customers and adjusted our flavors to better suit the market.” (Int 3)

“Government guidance has helped us understand Taiwan’s tax system and laws, allowing us to operate as a fully legal business.” (Int 23)

“There are many translation companies in Taiwan, and through customer feedback, we stay updated on their latest activities and practices, which we use to meet consumer needs even better.” (Int 14)

“With research support, I can now grow fruits in Taiwan that didn’t thrive back in my home country, producing better quality and appearance here.” (Int 4)

The first type of immigrant enterprise learns to integrate into the host country by understanding its culture, customs, and laws, collaborating with local businesses to strengthen localization efforts. The second type of immigrant enterprise leverages its inherent advantages to serve customers in both the home and host countries, learning from a competitive standpoint and using strategic approaches to rapidly acquire a large customer base in the short term. The third type of enterprise engages in continuous improvement and refinement through market and technological trial and error, learning collectively by interacting with external entrepreneurial entities. This helps to gather more information and avoid strategic blind spots. They also adjust their learning focus based on environmental demands to address deficiencies.

4.3.3. Reconfiguration/Transformation

Reconfiguration and transformation refer to the ability to adjust resource allocation. In rapidly changing environments, enterprises need to restructure asset configurations to implement both internal and external reforms.

New immigrant enterprises evaluate market conditions and technological changes, reconfiguring their asset structures and transforming internal and external capabilities. They adapt quickly by utilizing human resources, shifting target markets, and promptly reorganizing resources. Their resilience delays the entry of potential competitors into the market.

“We collaborate with local tech companies in Taiwan to handle our social media, which helps us attract more attention from Taiwanese customers.” (Int 12)

“We work with professional Taiwanese companies to manage services like POS systems and payment processing, which reduces the number of employees we need.” (Int 11)

“By developing new flavors in partnership with Taiwanese companies, we can keep our production costs lower.” (Int 3)

“Our business requires cooperation between Taiwan and Vietnam, and understanding both cultures and work styles is essential for expanding in both countries—something that’s not easy for others to replicate.” (Int 14)

“We use new management software and apps to make our services more professional and appealing to Taiwanese clients.” (Int 16)

“Through partnerships with local associations and business groups in Taiwan, we can enhance skills in areas we’re less familiar with, like online marketing, which helps us sell products in other countries as well.” (Int 20)

The first type of immigrant enterprise demonstrates strong reconfiguration and transformation capabilities. Business owners actively seek partnerships with host country suppliers to reduce costs. They innovate in products and services to expand their consumer base. The second type of immigrant enterprise strengthens their inherited technologies to provide more detailed services and products, distinguishing themselves from related enterprises in the host country. These enterprises look for service opportunities between the home and host countries. Business owners develop their strengths and use technology to serve more customers. The third type of enterprise improves their technology to increase production and expand their marketing scope, selling products worldwide. They focus on expanding their marketing domains, using online platforms or exports to grow their markets.

5. Discussion

5.1. Finding One: The Connection of Necessity-Driven Immigrant Enterprises with the Entrepreneurial Ecosystems of Home and Host Countries to Acquire Resources

Necessity-driven immigrant enterprises rely heavily on the entrepreneurial ecosystems of both their home and host countries to acquire the resources necessary for their development. The need for these resources is a critical driving force that propels resource flows and connections within the entrepreneurial ecosystem, which, in turn, is essential for the sustainable development of these enterprises. Therefore, the enterprise’s need to acquire external resources is a key driver in establishing connections within the entire entrepreneurial ecosystem. When more connections are established among the actors within the ecosystem, the ecosystem itself becomes more resilient. This aligns with Spigel’s model of entrepreneurial ecosystem development, which posits that increased resource flows and connections contribute to a more robust and resilient entrepreneurial ecosystem capable of withstanding external shocks [8].

5.2. Finding Two: Immigrant Entrepreneurs Heavily Rely on Ecosystems to Acquire Resources, with Human Resources Being the Most Critical

Due to the lack of internal resources, new ventures often need to acquire resources from the external environment [14]. This study finds that new ventures obtain various resources from the ecosystem actors, strengthening their unique assets and building the positioning elements within their dynamic capabilities. Human capital emerges as the most crucial aspect, as immigrant enterprises can use it to obtain the most diverse range of unique assets, highlighting the importance of human resources for immigrant enterprises. Additionally, host country government policies and institutional support can also provide significant assistance to new immigrant enterprises.

The growth of a business largely depends on its internal resources and its interactions with the external environment [41]. When a new venture has low richness of autonomous resources, low stability of internal product technology and services, and faces an immature external application market, it becomes more dependent on external system resources. Conversely, when these conditions are favorable, the venture has more options and encounters less urgency regarding external system resources. From the perspective of the entrepreneurial ecosystem, immigrant enterprises, due to their inherent resource scarcity, have an urgent need to acquire external resources. Therefore, from their inception, they have high levels of interaction with the entrepreneurial ecosystem and strong demand for its resources.

5.3. Finding Three: Immigrant Enterprises Leverage Social Networks to Connect with Home and Host Country Entrepreneurial Ecosystems for Resource Acquisition

Immigrant enterprises often acquire resources by leveraging their social networks to connect with both their home and host country’s entrepreneurial ecosystems. The extent to which these enterprises access resources across different ecosystems depends on the maturity of the ecosystem they are in, their understanding of the ecosystem, and their growth strategies.

The previous literature on entrepreneurial ecosystems has primarily focused on national, regional, or urban levels, limiting the discussion to within these boundaries [45,46,47]. However, the digital economy has reduced the cost of cross-border and cross-regional entrepreneurship, necessitating rapid customer base expansion to reduce marginal costs. When the entrepreneurial ecosystem in which a new venture operates is not mature or resource-rich enough to support its growth, the venture will seek external growth opportunities, potentially extending into other entrepreneurial ecosystems to acquire the resources needed for expansion.

5.4. Finding Four: Immigrant Enterprises Enhance Core Competencies and Build Competitive Advantage through Dynamic Capabilities of Rapid Coordination, Integration, and Learning

Immigrant enterprises often operate in rapidly changing environments characterized by product and technological uncertainties, direct and indirect threats from competitors, and adjustments in regulatory frameworks. Given that the technologies employed by these enterprises are typically not highly specialized, they need to develop dynamic capabilities to strengthen their core competencies and build competitive advantages. This study found that immigrant enterprises can survive in such volatile environments because their organizations, especially in the early stages, are relatively flat and possess high levels of dynamic capabilities. These capabilities allow the original core competencies and competitive advantages to evolve and adapt continuously through ecosystem learning, thereby maintaining a sustained competitive edge.

This dynamic perspective aligns with Teece et al. [26], who criticized the traditional resource-based view for overly focusing on unique resources as the source of core competencies. Teece and colleagues argued that dynamic capabilities create competitive advantages by enabling firms to leverage complementary assets to enhance core competencies. This study extends this view, suggesting that necessity-driven immigrant enterprises, constrained by limited resources, use dynamic capabilities to bolster core competencies and transform them into competitive advantages. In addition to initially establishing core competencies, these enterprises must continuously acquire resources from external entrepreneurial ecosystems, integrate newly learned knowledge with past experiences, and reconfigure resources to convert these core competencies into competitive advantages that are difficult to replicate or surpass in the short term [27].

6. Conclusions

This study combines micro-level enterprise perspectives and macro-level ecosystem perspectives to explore how necessity-driven immigrant enterprises develop dynamic capabilities by optimizing resource allocation, thereby building competitive advantages. These businesses leverage entrepreneurial ecosystems in both their home and host countries to secure resources critical to their growth and resilience. The findings highlight the proactive role of immigrant enterprises within entrepreneurial ecosystems, suggesting a co-evolutionary relationship in which both the enterprises and ecosystems adapt and evolve together.

6.1. Academic Implications

This research underscores the importance of entrepreneurial ecosystems in supporting necessity-driven immigrant entrepreneurship. It reveals that immigrant entrepreneurs capitalize on ecosystem resources—such as cultural assets, financial support, market opportunities, and human capital—to establish unique asset positioning. This study extends the theoretical understanding of entrepreneurial ecosystems by applying Teece et al.’s dynamic capabilities framework to necessity-driven immigrant businesses. These entrepreneurs, who often rely on social networks and cultural capital from both their home and host countries, face unique challenges that are distinct from opportunity-driven ventures. The study further emphasizes human capital as a crucial resource, highlighting its role in fostering cross-cultural connections and filling labor shortages in specific sectors. Future research should delve into the intricate interactions of immigrant entrepreneurs within these ecosystems, particularly the impact of ecosystem maturity on entrepreneurial success.

6.2. Practical Implications

For necessity-driven immigrant enterprises, strategically leveraging entrepreneurial ecosystem resources, knowledge, and skills is essential for remaining competitive in dynamic market environments. For policymakers, these findings underscore the need to develop policies that improve immigrant entrepreneurs’ access to financial resources, support networks, and human capital. Policymakers should foster culturally inclusive environments that enhance entrepreneurial reputation and support targeted initiatives, such as local venture capital access and government-backed grants, which are crucial for establishing a competitive edge. Furthermore, support networks, such as trade associations and incubators, should focus on bridging resource gaps and providing skill development programs aligned with the host country’s market needs, particularly in sectors facing labor shortages. Such targeted support not only enhances the sustainability of immigrant ventures but also bolsters the robustness and resilience of the entire entrepreneurial ecosystem.