Network-diversification and trust-building strategies of transnational migrant entrepreneurs: evidence from African migrant entrepreneurs in South China

Abstract

This article explores how African entrepreneurs in Guangzhou manage to survive in an environment that is characterized by harsh competition and major institutional restrictions. Combining literature on social networks theory with the mixed embeddedness approach, this paper presents an analysis of African entrepreneurial trajectories as a transnational and locally embedded process through exploring networking and trust-building strategies that African entrepreneurs employ to (re)position themselves in the Sino-African value chain. Based on ethnographic research on African entrepreneurs in Guangzhou, it shows that many African entrepreneurs are changing positions in the value chain by moving closer to Chinese production. Moving closer to the production side necessitates entrepreneurs to develop stronger local embeddedness whereas at the same time they need to maintain their transnational ties. Entrepreneurs in earlier phases rely on a ties with other Africans in Guangzhou, while in later phases they are embedded in a more diversified network.