Transnational diaspora entrepreneurship in emerging markets: Bridging institutional divides Liesl Riddle a, ⁎, George A. Hrivnak b,1 , Tjai M. Nielsen c,2 a The George Washington University, School of Business, International Business, 2201 G Street, NW, Washington DC 20052, United States b Bond University, School of Business, Gold Coast, QLD 4229 Australia c The George Washington University, School of Business, Department of Management, 2201 G Street, NW, Washington, DC 20052, United States article info abstract Article history: Received 2 February 2009 Received in revised form 10 June 2010 Accepted 14 June 2010 Available online 15 October 2010 Transnational diasporan entrepreneurs are migrants and their descendants who establish entrepreneurial activities that span the national business environments of their countries of origin and countries of residence. We explore how business incubators contribute to the economic development of emerging markets by organizing their programs to bridge the institutional divides that transnational diaspora entrepreneurs face when establishing their multi-territorial ventures in these markets. Drawing on qualitative fieldwork conducted in the Netherlands during 2007, we present the case study of IntEnt, an incubator providing services exclusively to transnational diasporan entrepreneurs. We apply Bergek and Norrman's (2008) assessment framework to this case, examining IntEnt's goals, model (selection, business support, and mediation activities), and outcomes. Employing Eisenhardt's case-based theory development approach (1989), we then leverage case findings to generate theory about the institutional challenges faced by transnational diaspora entrepreneurs and the role that incubators can play in helping these entrepreneurs overcome these challenges. © 2010 Elsevier Inc. All rights reserved. Keywords: Diaspora Transnational entrepreneurship International entrepreneurship Institutions Emerging markets Incubator 1. Introduction Institutions provide the foundation for long-run national economic performance by structuring incentives in human exchange and interaction (North, 1990). Many emerging market economies suffer from institutional voids, due to a lack of specialized intermediaries whose actions typically serve to reduce transaction costs and encourage interaction between potential buyers and sellers. Institutional voids underpin many of the structural challenges in emerging markets and often make it challenging for firms to succeed in these environments (Khanna and Palepu, 2010). How institutions affect business strategy, operations, and firm performance is an increasing concern of international management research (Ricart et al., 2004). Institutional voids in emerging markets often serve as “push factors,” encouraging and, in some cases, forcing individuals to leave their country of origin (COO) to seek refuge and opportunity in distant lands (Massey, 1998). Migrants in today's globalized world often leverage developments in transportation and communication technologies to connect with their COOs in ways that were unimaginable in the past. These advancements have fostered the development of diasporas, or “social–political formations… whose members regard themselves as of the same ethno-national origin…who maintain regular or occasional contacts with what they regard as their homelands and with individuals and groups of the same background” (Sheffer, 2006:10). As Ramamurti (2004) and others (e.g., Buckley et al., 2002; Huang and Khanna, 2003) have noted, diaspora entrepreneurs are an important subset of foreign investors in many emerging markets. Diaspora entrepreneurs are often motivated to invest in their Journal of International Management 16 (2010) 398–411 ⁎ Corresponding author. Tel.: + 1 202 994 1217. E-mail addresses: lriddle@gwu.edu (L. Riddle), ghrivnak@bond.edu.au (G.A. Hrivnak), tnielsen@gwu.edu (T.M. Nielsen). 1 Tel.: +61 5595 1278. 2 Tel.: +1 202 994 6976. 1075-4253/$ – see front matter © 2010 Elsevier Inc. All rights reserved. doi:10.1016/j.intman.2010.09.009 Contents lists available at ScienceDirect Journal of International Management