Networks around Iranian entrepreneurs at home and in diaspora: Effects on performance

Abstract

Entrepreneurs rely on different types of networks like public and private. One reason for this difference between networks is a difference between cultures. Moreover, networking in public and private spheres has different consequences for entrepreneurial outcomes. The purpose of this study is to analyze effects of Iranian entrepreneurs' network at home and in diaspora upon entrepreneurial outcomes. We used a sample of 1387 intending, starting and operating entrepreneurs, including 1330 native-born in Iran and 57 Iranians in the diaspora in age of 18-64, from Global Entrepreneurship Monitor. Based on the results, Iranian entrepreneurs in Iran receive advice mainly from their private sphere while Iranian entrepreneurs in diaspora use their public sphere. Being in diaspora affects entrepreneurs' innovativeness (use of new technology, newness of product for customers and newness of products in market) and exporting positively. Overall, Iranian entrepreneurs in diaspora have larger and more diverse networks, which affect their innovativeness, exporting and growth-expectation positively. The study contributes to the study of Iranian entrepreneurs' networking at home and in diaspora and the effects of public and private networking on their entrepreneurial outcomes.