A case study in how expatriate and location-agnostic entrepreneurs implement social media and multicultural communications strategies into innovative business models.
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Business Without Borders: The Global and Social Evolution of Entrepreneurship
1. Business Without Borders:
The Global and Social
Evolution of Entrepreneurship
Monica Miller Rodgers, APR
Advisor: Dr. Dennis Kinsey
Syracuse University
2. Why is this important?
• Monica Miller Rodgers, APR
• Advisor: Dr. Dennis Kinsey
Syracuse University
3. The messages and interaction
that help build trusting
relationships are rarely
centralized, but now spread
across multiple partners,
communities and individuals
around the globe.
-D.R. Gilpin & P. Murphy
from Author Page Society ,
2010
Research Problem
5. 1. How do expatriate and location-agnostic entrepreneurs use
social media in their business models?
2. How do expatriate and location-agnostic entrepreneurs
implement multicultural communications into their business
models?
3. Why are social media and multicultural communications
important to these new business models?
Research Questions
6. Social Media Theory
Literature Review
• Social Media
-J. N. Kim & L. Ni, 2010
-G.M. Chen, 2012
-S. Holmström, 2010
-K. Colburn, 2008
-T. Coombs, 2008
-L. Kwok & B. Yu, 2012
-D.R. Gilpin & P.
Murphy, 2010
Web 2.0 designs that enable
users to participate in two-
way communications and
interaction and share
information with publics
through various features.
7. • Entrepreneur
-J.E. Amoros & N. Bosma, 2013
-P. Drucker, 1985
-R. Henderson & M. Robertson, 2000
-J. Schumpeter, 1947
Literature Review
Entrepreneurship Theory
Someone who has
evoked on a new
business venture
and displays
qualities in
innovation and
creativity.
8. Literature Review
Entrepreneurship Theory
• Location-Agnostic
-T. Mohn, 2014
-K. Everett, 2014
• New
-B. Steyn, 2011
One who has established and
runs a business using mainly
online resources from various
global locations.
A disruption to traditional
methods that continuously
adapts to situations.
9. Literature Review
Entrepreneurship Theory
• Business Model
-G. George & A.J. Bock, 2011
-R.D. Putnam, 1995
-S. Heinonen, S. & J.
Ruotsalainen, 2012
-R. Ramachandran, 2010
The static concept that
an entrepreneur has
created through an
opportunity to provide
a product or service to a
public and the social
aspect he incorporates
into that concept.
11. Literature Review
Multicultural Communications Theory
• Multicultural Communications
-B. Feng & H. Li, 2009
-H.W. Ellingsworth, 1968
-J. L’Etang, 2010
-Y. Devran , 2010
-G.M Chen, 2012
The ability of expat or
location-agnostic
entrepreneurs to establish
knowledge and sensitivity
to effectively interact with
foreign cultures so they
may understand cultural
contexts and create
successful businesses.
12. Literature Review
Multicultural Communications Theory
• Expatriate
-Internations, 2014
-J.M. Sequeira, J.C. Carr & A.A.
Rasheed, 2009
-D.R. Befus, T.S. Mescon, D.L.
Mescon & G.S Vozikis, 1988
-S. Collier, 2011
Someone who is living in
a country other than his
home or national nation
and has established and is
operating a business in
that country
14. 1. Expat entrepreneurs will place a heavier emphasis on
multicultural communications in their business models than
location-agnostic entrepreneurs place in theirs.
2. Location-agnostic entrepreneurs will place a greater emphasis
on social media use in their business models than expat
entrepreneurs place in theirs.
3. Location-agnostic entrepreneurs are more probable to pursue
George and Bock’s (2011) definition of an innovative business
model design whereas expat entrepreneurs are more likely to
use an opportunistic business model design.
4. Location-agnostic entrepreneurs are more inclined to set up
the category of a circuit business model whereas expat
entrepreneurs are more likely to set up one of the other four
categories (cultural, ethnic, return migrant or elite expansion).
Hypotheses
16. Case Study Method
An ethnographic embedded
multiple-case design with
multiple units of analysis of
social media and multicultural
communications strategies in
various business models.
18. Data Analysis
1. Theoretical propositions of social media,
entrepreneurship and multicultural communications
theories were relied upon using the pattern matching
technique.
2. A case description using explanation building was
developed to understand how and why expat and
location-agnostic entrepreneurs implemented best
practices in social media and multicultural
communications into their innovative business
models.
19. Results
I’ve had a ‘horse before the cart’ scenario. I’ve built a large
following with mass appeal so that I can carry these
audiences with me to a bigger medium, like television.
Through this strategy, I’ve been able to personally brand
myself so I can launch other offerings in the future. This is
a much more flexible approach.
-Entrepreneur U
General Findings
20. Results
General Findings
As entrepreneurs, we take a lot out of a
community. We have an obligation to return to
the community more than what we take out.
-Canadian Independent Psychologist
21. Results
General Findings
I’m very direct and responsive. My Swiss
customers and vendors need at least a week to
make a decision. It’s hard.
-German Graphic Designer
22. Results
How do expatriate and location-agnostic entrepreneurs
use social media in their business models?
• Promotion of products and services
• Networking with potential partners
• Two-way communication with audiences
• Building a community of supporters
• Promoting the lifestyle
23. How do expatriate and location-agnostic entrepreneurs
implement multicultural communications into their
business models?
Results
The multicultural aspect creates my business’
core identity, the one thing competitors have the
hardest problem with replicating. I’m known as
‘The German’ in my market, and I’ve embraced
and used that label that was given to me.
-Jens Kiel
24. Why are social media and multicultural communications
important to these new business models?
Results
I will only be able to do this business because of
my strong multicultural background. I’m betting
my business on this.
-Alexia Iskenderian
27. Conclusions
Entrepreneurship Theory
HUSTLE
Hustling is about working your ass off. Keep on pushing
over and over. Being willing to do the things no one else is
willing to do. It’s a break from the norm.
-Entrepreneur U
29. Hypotheses Revisited
1. Expat entrepreneurs will place a heavier emphasis on
multicultural communications in their business models than
location-agnostic entrepreneurs place in theirs.
2. Location-agnostic entrepreneurs will place a greater emphasis
on social media use in their business models than expat
entrepreneurs place in theirs.
3. Location-agnostic entrepreneurs are more probable to pursue
George and Bock’s (2011) definition of an innovative business
model design whereas expat entrepreneurs are more likely to
use an opportunistic business model design.
4. Location-agnostic entrepreneurs are more inclined to set up
Sequeira’s (2009) category of a circuit business model
whereas expat entrepreneurs are more likely to set up one of
the other four categories (cultural, ethnic, return migrant or
elite expansion).
33. Q & A
I think all communications is multicultural because
no one has exactly the same background,
regardless of nationality. Culture is family,
experiences, gender, thought processes,
personality – all this makes up an individual’s
culture. If I don’t treat all communications in this
way, I run the risk of miscommunication.
-Stephanie Cirihal
35. Class of 2012
Tiffani the Terrific
Amie the Awesome
Lyn the Lovely
Kristin the Kindred
Amy the Amazing
Cheryl the Courageous
Fabiana the Fabulous
Dan the Man
Tom the Tenacious
36. THANK YOU
My Rock: Erie
My Best Friend: Elizabeth
My Mini Me: Lexie
My Everything: Chris
Notes de l'éditeur
Tudo Bom. Grüezi mitenand. nǐ hǎo. For the past two plus years, I’ve been moving every six months, living in Brazil, Switzerland and China, while running my own public relations consultancy. Now that I’ve appropriately greeted you in Brazilian Portuguese, Swiss German and Mandarin Chinese, you may be beginning to see why I would choose the topic of how globalization and social media have affected entrepreneurship.
According to the Global Entrepreneurship Monitor Global Report, Total Entrepreneurship Activity in on the rise around the world, but especially in emerging economies
With the advent of social media, political, economic and geographic barriers of entry are crumbling, and many entrepreneurs are now doing business in global markets before they ever dominate their home markets
Due to this blurring of national borders, multicultural audiences are now the fastest growing customer segments, with an expected buying power of $3.8 Trillion by 2017. Native-born citizens are leaving their countries in droves and setting up shop in overseas locations. In the U.S. alone, we see approximately 3 million citizens a year move abroad
Living as one of these citizens in an expatriate status since 2012, I was moving in circles with other entrepreneurs like myself. Then I met an even more advanced version – the location-agnostic entrepreneur. Not satisfied in just one overseas location, this entrepreneur is a constant traveler tied to no particular location. Again, the advancement of Internet technologies has spurred this new breed of entrepreneur.
In this age of digitalization and globalization, communications professionals are increasingly being called upon to manage relationships with publics spread across the world
Yet, these new and disruptive business models are underserved by our profession as we continue to focus on the traditional big businesses and venture-capitalist-funded startups in native countries
There is much literature in the field about the integration of communications and digital media strategies in established business models, but almost none exists on how we can support these new entrepreneurs with multicultural communications strategies
Through the use of literature in communications, economics, business and sociology, this case study attempted to add to the body of knowledge
I specifically took ideas inside of Social Media, Multicultural Communications and Entrepreneurship Theories and applied them against the real-world activities of expatriate and location-agnostic entrepreneurs to determine if the theories accurately predicted and identified the undertakings of these new breed of entrepreneurs
This case study examined how expat and location-agnostic entrepreneurs used multicultural communications and social media in their modern business models and why these concepts where important to this evolution of entrepreneurship.
In those research questions, there are some concepts that need to be defined
First, social media. Through the communications literature of Kim & Ni, Chen and Holmström, we come to understand how social media has made the world smaller, bringing truly diverse audiences together on the same level
Colburn and Coombs focus on the utilitarian features of the platforms, explaining how these resources connect people from around the world that hold common interests
Finally, Kwok and Yu take a marketing approach to social media dissecting how the channels shape public opinion and create word-of-mouth promotion for businesses.
Combined, this literature leads to the definition for this study.
From the business literature, Amoros and Bosma define an entrepreneur purely by economic development and the well-being of a society through fiscal means
Famed management theorist Peter Drucker went beyond this monetary view to claim entrepreneurs were distinguished by their attitudes toward change, how they could exploit those opportunities to their advantage
Henderson and Robertson built upon this idea to postulate that entrepreneurship was even more influenced by a set of qualities, one being innovative as Schumpeter explained that this innovation was the creative disruption that was need to replace outdated forms of business
For this study, an entrepreneur was defined as
Mohn says location-agnostic entrepreneurs shed the traditional 9 to 5 job in favor of a lifestyle that allows them to live and work from anywhere in the world, as long as there is a good Internet connection
Everett expounds on this lifestyle using Benedict Anderson’s imagined communities, where like-minded people build fraternity online, sometimes never meeting in person
These thoughts led to the definition of … for a location-agnostic entrepreneur
Steyn helps to define the concept of new in these emerging strategies as problems are solved in unstructured situations or opportunities are capitalized on that have not been present before
Hardest to define because the literature varies so much
Center around the creation of opportunities
Ramachandran explains how expat and location-agnostic entrepreneurs are disrupting traditional business models through their ability to secure capital efficiency in new ways and focus on more than just profits
Building upon Putnam’s idea of social capital, where entrepreneurs create networks, norms and trust that facilitate coordination and cooperation for mutual benefit, this new class of entrepreneurs are providing more to society than just economic resources
Heinonen and Ruotsalainen take Putnam’s theory a step further introducing the meaning society where experiences are valued more than know-how as we continue to evolve from the current knowledge society of information consumption. These new forms of business models promise to fulfill self-actualization in Manslow’s Hierarchy of Needs
George and Bock, who presented several different definitions for a business model, classify six categories
This literature led to the definition for this study
Design, where business was agent-driven or emergent
Resource-Based, where the organization structure codetermined and coevolved with the firm’s core activities
Narrative, where the organizational outcomes were driven by subjective and descriptive logic
Innovative, where configuration was linked to the evolution or application of the firm’s technology
Transactive, where transactions are designed to create value through opportunity
Opportunistic, when implementation is tied to expectations about how the venture will succeed in its environment
International public relations defined as the planned and organized effort of an organization to establish mutually beneficial relationships with the publics of other nations by Feng and Li
Cultural rhetoric defined as the communication styles of a particular culture, including appropriate themes, modes of expression, standards, purposes, sources, and receivers of communication by Ellingsworth
According to L’ Etang, these communications are studied through multiple understandings and interpretations of rhetorical-type practices that have evolved within a range of historical conditions and microcultures
Intercultural communications defined as the interaction that occurs whenever a message is produced in one cultural context and the way it gets interpreted in another one by Devran
Globalization, the expansion and intensification of social relations and consciousness across world-time and world-space and the social process in which the constraints of geography on social and cultural arrangements recede and people become increasingly aware that they are receding as defined by Chen, has significantly impacted multicultural communications.
Lead to this definition for the study
Someone who temporarily or permanently lives in a different country than the one they were born in or whose nationality they have by Internations
Several reasons why one becomes an expat – advanced career opportunity, following a partner, or find a new pace of life by Befus, Mescon, Mescon and Vozikis, even out of necessity due to negative reactions in the host country, as theorized by Collier
Business literature by Sequeira, Carr and Rasheed define a transnational entrepreneur as a foreign-born self-employed person who engages in activities that require several trips abroad with the success of their business being dependent on the entrepreneur's contacts in their host and home countries
This led to the definition for this study
There are five types of transnational entrepreneurs
Circuit, where resources flow across the borders of the entrepreneur’s home and host country
Cultural, where the entrepreneur preserves the identity of his home country in his host country
Ethnic, where an entrepreneur sets up a small venture in an immigrant neighborhood in his host country to employ and cater to those particular immigrants
Return Migrant, where an entrepreneur has lived abroad and returns to set up a venture in his home country to serve and sell resources from his host country
Elite Expansion, where the entrepreneur establishes a business in his home country to cater to that country’s immigrants abroad
The literature led to the creation of four hypotheses
From my understanding of the literature, I believed that expat entrepreneurs would rely more on multicultural communications than location-agnostic entrepreneurs, who would rely more on social media
Out of the categories of business models, I believed expats were more likely to create opportunistic design whereas location-agnostics would purse the innovative design
Finally, I believed location-agnostics were more likely to set up the circuit business model whereas expats would embrace one of the other four categories
Stephanie Cirihal – Personal Coach – American in Brazil
Jens Kiel – Marketing Consultant – German in the U.S.
Barry Lee – Co-Working Space Owner – American in China
Peter Shankman – Marketing Communications Consultant – American based in NYC who travels up to 75%
Alexia Iskenderian – Professional Coach – Swiss/American citizen based in Zurich who travels to another country at least twice a month
Entrepreneur U Anonymous – Owns his own web platform to teach others how to gain employment aboard – American who consistently lives and work abroad
Also attended expat entrepreneur Meet Ups where I was exposed to many entrepreneurs from around the world
According to Yin, 3 conditions preference the use of a case study: 1) how and why questions; 2) circumstances when the investigator has little control over events; and 3) when the focus is on contemporary phenomenon within real-life context.
My study design met all three requirements.
Ethnographic = Studying the business and cultural lives of expat and location-agnostic entrepreneurs
Embedded = Units of analysis were found within the overall entrepreneurial structure (e.g. social media posts)
Multiple Case = Six entrepreneurs
The study used analytic generalization, or applying theory to results, to determine the importance of social media and multicultural communications in the business models of expat and location-agnostic entrepreneurs
Six focused interviews with script of 18 open-ended questions that related to the research questions
Documentation of all social media channels of each of the interviewee’s, specifically looking for use of multicultural communications, such as posting in local languages, and business objectives
12 hours of participant observation attending an Expat Entrepreneur Meet Up Group in Zurich
How the entrepreneurs used social media was studied for corresponding examples in social media theory
Tactics and models were explored to determine if they fit with entrepreneurship theory
Finally, did the entrepreneurs display sensitivity and cultural awareness in their business and social media activities as suggested in multicultural communications theory?
What caused the entrepreneurs to decide to include social media and multicultural communications in their business models?
Consistently evolving business models, not static
Cirihal just rebranded
Aware of the effects of globalization. No one cause led them to start their own businesses, but a series of factors – Cirihal and Klein followed partners, Entrepreneur U and Lee affected by the 2008 financial crisis, Iskenderian’s upbringing and Shankman’s influence spread globally
Split in their opinions in the usefulness of social media
All the entrepreneurs interviewed and observed in this study agreed that they had a social responsibility to the communities they operated in
Unlike previous research, these entrepreneurs believed they should do more than just provide jobs or economic value to a community
Understand they need to be aware of sensitivities in interacting with other cultures, but some do more than others in altering their activities to accommodate
The rest of the results were categorized in relation to the specific research questions
Shankman shares his upcoming schedule of mastermind events
Iskenderian is the Internations Consul for Zurich professional networking groups
Cirihal posts Daily Dose of Science questions and then responds to interactions
Lee hosts Meet Up groups at his co-working space on photography and local Burning Man Burners
Kiel shared photos of his business’ first-year anniversary cookout where he served bratwursts shipped in from Germany
Cirihal, Iskenderian and Kiel most aware of multicultural communications, posting in social media in multiple languages and sharing cultural pieces (Life in Sao Paulo) on their blogs – two expatriates and one location-agnostic
Shankman, Entrepreneur U and Lee – aware of the need for sensitivity, but don’t change their activities. “I don’t judge if I’m reaching one public or another; I just communicate.” - two location agnostics and one expatriate
Language is the largest factor – Iskenderian uses its whereas Lee avoids it be more inclusive of everyone
Cirihal and Iskenderian expressed empathy with multicultural clients “meeting them where they were at instead of where I’m at”
Though the importance of each was not agreed upon, all the entrepreneurs interviewed did agree that social media use and at least an awareness of multicultural sensitivities were important to their businesses.
Kiel and Iskenderian placed more emphasis on multicultural communications, where Entrepreneur U and Shankman readily agreed social media was more important. Cirihal saw the two as equally important, as social media brought in leads but she sustained customers through her multicultural awareness.
Through the use of the social media channels, these entrepreneurs are bringing diverse publics together, just as theorized by Kim and Ni, Chen, and Gilpin and Murphy
Giving publics a platform to voice concerns and shape the globalized world, as postulated by Holmström
Using social media in a variety of ways to connect audiences through a common interest, as presented by Colbert and Coombs
Creating positive word of mouth for their businesses, as put forth by Kwok and Yu
Theory matches and explains the activities of the entrepreneurs
Social Media-J. N. Kim & L. Ni, 2010-G.M. Chen, 2012-S. Holmström, 2010-K. Colburn, 2008-T. Coombs, 2008-L. Kwok & B. Yu, 2012
In describing an entrepreneur, all the interviewed entrepreneurs did agree with Amoros and Bosma’s economic factors, Drucker’s idea of change agents, Schumpeter’s belief in disruption of the business status quo, and Henderson and Robertson’s entrepreneurial qualities.
All the entrepreneurs fell in line with Putnam’s, Heinonen’s and Ruotsalainen’s, Steyn’s and Ramachandran’s ideas of putting forth social responsibility and not just focusing on profits.
For the location agnostic entrepreneurs, they supported Mohn’s and Everett’s descriptions and advocacy of online communities.
When it came to business model’s, however, there was a complete disconnect. None of the entrepreneurs prescribed to rigidness of the theory’s definitions. None of the business models cleanly fit into any of George and Bock’s six types, rather combining and flowing across the themes.
This nonconformity to theory was best explained by Entrepreneur U’s concept of “hustle,” an idea the researcher has witnessed with various other location-agnostic entrepreneurs.
Split opinion
Only half of the interviewed entrepreneurs are producing communications in line with Ellingsworth’s and L’ Etang’s cultural rhetoric ideas. Though the other half may curb their personal behaviors to accommodate a particular culture they are currently in, such as when Shankman tones down the humor in his speeches in Asia to reflect a more serious image, they don’t change their online postings or target content to a particular culture outside of the occident.
They all prescribe to Chen’s definition of globalization, but there is a serious lack in instituting effective multicultural communications in these new forms of business models.
All the expatriate entrepreneurs agreed with the Internations’ definition of expatriate and stated similar reasons for going international as theorized by Befus, Mescon, Mescon and Vozikis and Collier.
Again as with the business models, none of the expatriate entrepreneurs fit into just one of Sequeira’s, Carr’s and Rasheed’s five models of expat business ventures.
As defined in the conclusions, my first two hypotheses were proven, but the last two proved inconclusive as the none of the entrepreneurs’ business models fit succinctly into any one theorized category.
All interviewed entrepreneurs had a connection to the U.S., which most likely swayed their opinions
All observed entrepreneurs were working solely in Switzerland
All individuals in the study were just that, solopreneurs who may, at most, hired an assistant or a couple of partners. Therefore, results cannot be generalized to larger entities, such as entrepreneurs who have gone on to develop small businesses or multinational corporations
Interview questions were not posed to ask the entrepreneurs to specifically place their models into one the theory’s types, so I had to use my best judgment to infer what business models best aligned to what descriptions, which leaves considerable room for misinterpretation.
Not just one cultural background but many - Iskenderian was born in Armenia, spent her early childhood in Lebanon and Japan, went through middle childhood and her teen years in the U.S. and Switzerland, had a Russian partner, and now travels throughout the world. How does mixed multicultural backgrounds affect the business decisions of entrepreneurs?
Did not encompass how these factors affect success or failure of an entrepreneurial undertaking.
Female entrepreneurs tended to incorporate multicultural communications more than their male counterparts. Outside the scope of this study, but future research could determine if sex does affect that particular business decision.
With my own multicultural work experiences in the two plus years, I’ve been my own guinea pig.
Now working for a multinational company where I’m putting these lessons into actual practice in content strategy.
Aspirations to produce an eBook from this study, hopefully in 2015.
Thank you and Farewell to all the wonderful administrators in the executive communications management program
Maria Russell, Program DirectorNellie Jones, Program ManagerDennis Kinsey, Advisor