Mixed embeddedness

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Mixed Embeddedness is a theoretical analytical framework by Robert Kloosterman and Jan Rath (1999), on the basis of which the development and high degree of growth in migrant economies should be explained. This approach tries to do justice to the complex interweaving of the actors through their embedding in the society of origin (immigrant network) and the host society (political, institutional environment). This model is often used as the starting point for current empirical research on the subject of "migrant business".

The concept of mixed embeddedness

It can be used as an extension of previous approaches, such as the market sociology concept ( market sociology ) of " embedding ", which ascribes success through embedding in the social and cultural characteristics of the social immigrant communities (networks) and the resulting usable resources, and the interaction model (Roger Waldinger, Howard Aldrich, Robin Ward) which is subject to criticism that the cultural influence is overrated.

The concept of mixed embeddedness specifically points to the multiple embedding of entrepreneurs beyond their own community. In particular, also in the legal and political framework, as well as the market conditions of the host society, up to voluntary or mandatory memberships in trade associations and organizations, which on the one hand result in restrictions, but also in certain structures of possibility.

Significance of the legal and political framework

The structures of opportunities for immigrants vary according to the host society. The market conditions, which tend to open up certain opportunities and prevent others, are influenced by the existing social system (welfare, organization of the market, legal situation, spatial distribution of migrants).

The mixed embeddedness concept is primarily geared towards (continental) European welfare societies or societies with strongly developed social systems. This welfare model is characterized by high minimum wages , strong exclusion criteria and restrictive employment laws for migrants on the regular labor market (entitlement to take up paid work, labor market test, priority for national residents ) and this results in above-average unemployment rates among immigrants. Business start-ups in labor-intensive market segments with relatively low profit margins and growth potential (local suppliers of small size, restaurants, ...) are not particularly attractive for citizens due to the high minimum wages and the risk to be borne . For immigrants, for example, because of the lack of alternatives on the labor market, but also because of specific advantages resulting from their special networks, they can be a very interesting option to take a higher socio-economic position and thus contribute to increased social mobility in the host society.

Of course, other factors, such as those found in the normal decision to become self-employed , such as independence or reputation, also play an important role. Kloosterman et al. 2003 point out, however, that it is often less the urge than the pressure that determines the founding of a company .

"Many immigrant entrepreneurs are not so much pulled as pushed towards these openings." (Kloosterman et al. 2003: 11)

Importance of embedding in immigrant communities

The founded companies are mainly found in urban areas with a high proportion of migrants (Musterd 1997), where there are significantly lower entry barriers, since the locally existing social network, both customers and employees, as well as capital and trust can generate which subsequently for informal economic activities (see informal economy ) can be used.

Openings take place mainly because of

specific demand for ethnic products and
Closing existing shops in the neighborhood and replacing them with ethnic businesses

instead of. (Uncle Ali shop instead of corner shop)

Businesses at the lower end of the market segment remain competitive thanks to cost savings (in labor) and flexibility. According to the legal and economic framework, this is only feasible to a limited extent. The privileged access to migrant networks (social capital) makes resources available at low monetary costs which sometimes do not correspond to the legitimate framework conditions. (Workers below the minimum wage, working hours, informal employees, ...). This use of informal economic activities enables a survival where other (ordinary) businesses fail.

A study by the Institute for SME Research at the University of Mannheim, commissioned by the BMFSFJ, looked at the compatibility of family and work in migrant companies. 55% of employees in migrant companies are women; four out of ten migrant companies have more than 70% women. According to surveys, 27% of those in migrant companies have children who have to be looked after during working hours. Almost half of the migrant companies have employees with children in need of care, and a sixth have employees who care for relatives. Migrant companies are often small (as of 2013).

"Impact"

Since these migrant companies are primarily dependent on specific environmental characteristics, problematic phenomena arise from this, such as the high number of similar shops that can often be found in the immediate geographical vicinity within certain city districts. Accordingly, the market is often saturated or even oversaturated in a very short time, so that in order to be able to assert oneself on the market (many companies do not last long), further measures such as cost savings, reaching new customer groups, expanded product diversity or requires other innovative measures and strategies.

On a social level, this represents a constantly evolving process from which ever new types and forms of entrepreneurship that have to prove themselves again and again.

Web links

literature

Tine Davids, Marieke Van Houter: Emigration, Development and Mixed Embeddedness: An Agenda for Qualitative Research? In: International Journal on Multicultural Societies. Vol. 10, No. 2, 2008.

Drew Gertner, Monder Ram, Kiran Trehan, Trevor Jones, An 'Enhanced' Mixed Embeddedness: A Relational Approach to Ethnic Minority Businesses , Academy of Management Proceedings, Vol. 2015, No. 1

Robert Kloosterman, Joanne van der Leun, Jan Rath: Mixed Embeddedness: (In) formal Economic Activities and Immigrant Businesses in the Netherlands. In: International Journal of Urban and Regional Research. 23 (2), pp. 252-266.

Robert Kloosterman, Jan Rath (ed.): Immigrant Entrepreneurs. Venturing abroad in the age of globalization. Berg, Oxford / New York 2003. (therein: Introduction, 1–16)

Maggi WH Leung: From four-course Peking Duck to take-away Singapore Rice: An inquiry into the dynamics of the ethnic Chinese catering business in Germany. In: International Journal of Entrepreneurial Behavior and Research. 8 (1/2) 2002, pp. 134-147.

Marie Price, Elizabeth Chacko: The Mixed Embeddedness of Ethnic Entrepreneurs in a New Immigrant Gateway. In: Journal of Immigrant & Refugee Studies. Volume 7, Issue 3 July 2009, pp. 328-346.

M. Ram, N. Theodorakopoulos, T. Jones: Forms of capital, mixed embeddedness and Somali enterprise. 2008, ISSN 0950-0170 .

Jan Rath (Ed.): Unraveling the Rag Trade. Immigrant Entrepreneurship in Seven World Cities Berg, Oxford / New York 2002.

Individual evidence

↑ Compatibility of family and work in migrant companies in Germany. Results of a representative survey - ifm University of Mannheim. January 2013, accessed March 24, 2019 . P. 13.
↑ Compatibility of family and work in migrant companies in Germany. Results of a representative survey - ifm University of Mannheim. January 2013, accessed March 24, 2019 . P. 16.
↑ Compatibility of family and work in migrant companies in Germany. Results of a representative survey - ifm University of Mannheim. January 2013, accessed March 24, 2019 . P. 14.
↑ Compatibility of family and work in migrant companies in Germany. Results of a representative survey - ifm University of Mannheim. January 2013, accessed March 24, 2019 . P. 79.

[1] Compatibility of family and work in migrant companies in Germany. Results of a representative survey - ifm University of Mannheim. January 2013, accessed March 24, 2019 . P. 13.

[2] Compatibility of family and work in migrant companies in Germany. Results of a representative survey - ifm University of Mannheim. January 2013, accessed March 24, 2019 . P. 16.

[3] Compatibility of family and work in migrant companies in Germany. Results of a representative survey - ifm University of Mannheim. January 2013, accessed March 24, 2019 . P. 14.

[4] Compatibility of family and work in migrant companies in Germany. Results of a representative survey - ifm University of Mannheim. January 2013, accessed March 24, 2019 . P. 79.