Country Comparisons

Abstract

As highlighted through the cases and as we learn more about the individual SIEEs, we can also see how each country context differs socially, culturally, politically and economically. The following chapter will share the findings from the analysis of the cases within their country context, providing an overall contemporary picture of the Japanese self-initiated transnational entrepreneurs in Asia.

As highlighted through the cases and as we learn more about the individual SIEEs, we can also see how each country context differs socially, culturally, politically and economically. The following chapter will share the findings from the analysis of the cases within their country context, providing an overall contemporary picture of the Japanese self-initiated transnational entrepreneurs in Asia.

4.1 General Findings

Initially, 68 interviews were conducted throughout South East (SE) Asia, but of those, 51 were deemed to fit the definition of a self-initiated expatriate transnational entrepreneur. Of the 51 transnational entrepreneurs interviewed, 37 were males and 14 were females. This mirrors the general trend in Japanese entrepreneurship in that males tend to dominate the field, yet there is positive growth among women. In addition, 37 were married and 14 were single.

Sixty percent of male SIEEs were aged between 26 and 35 when they became a SIEE, while for women, the majority became an entrepreneur between the ages of 26 and 40, highlighting that men tend to start slightly earlier in life than women (Table 4.1).

Table 4.1 Demographic Information

In terms of their place of birth , Table 4.1 shows from which prefecture in Japan the SIEEs originated, highlighting that although a significant percentage are from Tokyo and the greater metropolitan area, there is an interesting spread of entrepreneurs from more rural prefectures of Japan.

With regard to family background, over half of the entrepreneurs had an entrepreneur in their immediate family, whether that may be a parent, sibling or grandparent, and thus they grew up among a culture of entrepreneurship. Over half of the SIEEs were educated at undergraduate degree level, while 37% did not go to university and instead, graduated from senior high school or a technical or vocational college and 5.8% earned a graduate degree.

Almost 70% of the SIEEs had experience overseas during the learning stage of their life, which, as we will explain later, was instrumental in a SIEE’s decision to become an expatriate. Linked to this is the entrepreneurs’ motivation to expatriate (Table 4.2). The majority of SIEEs had either a general interest in overseas, study abroad experience at university or had traveled overseas for work or pleasure. Unlike migrants who seek safety and security in a foreign country, none of the TEs were motivated by a safer life outside Japan, although almost 10% cited a need to escape life in Japan (but this was for cultural and social reasons as opposed to safety). This confirms that the classification of these individuals as SIEEs is correct, over using the terms ‘diaspora’ or ‘migrant’, which conjure up a particular image of the individual’s motivation to leave their home.

Table 4.2 Motivation for relocation

With regard to the entrepreneurs’ field of business in their first employment, their first entrepreneurship endeavor in Japan and their current field of transnational entrepreneurship , Table 4.3 highlights the shift in fields. Eighty-eight percent of SIEEs felt their prior work experience in Japan was beneficial for their future; however, 51% cited they had no mentor in their first workplace, as opposed to 76% who now have one as an entrepreneur. Interestingly, 72.5% of entrepreneurs did not have experience setting up a company in Japan prior to moving overseas. In addition, the primary field of business for the entrepreneurs’ first employment and subsequent overseas company was general management, highlighting the generalist aspect of Japanese traditional employment practices. The Japanese education system, as mentioned in Chap. 2, generally educates for generalists as opposed to specialists. Interestingly, fewer SIEEs chose to remain in the computer IT and software field, despite it being a main field of employment in their first job and in their first start-ups in Japan as shown in Table 4.3. Similarly, there was a decrease in those working in retail and sales and banking, but unsurprisingly, there was an increase in those working in trade and transportation, which would be a niche field for SIEEs due to their bicultural nature.

Table 4.3 SIEEs field of work

Once SIEEs decide to start their own business overseas, where do they get their funding from and how much would an SIEE need to start a business in South East Asia? Table 4.4 shows a summary of the source of funding for the Japanese SIEEs .

Table 4.4 Source of funding

Over half of the SIEEs were self-funded by savings and a quarter of those interviewed used a combination of self-funding and a general investor. Interestingly, only 1.9% of SIEEs used crowdfunding support or angel investors. Similar to regular Japanese domestic small and medium business owners, a significant proportion of funding also comes from the immediate family .

Of most interest in regard to funding is the low barrier to entry. More than half the entrepreneurs used less than 5 million yen to start their business, with a quarter using less than 3 million yen and 30% spending more than 9 million yen (Table 4.5).

Table 4.5 Start-up funds

With regard to professional development, the majority of Japanese TEs read books on business and other subjects outside of business to widen their knowledge base. This was followed by engaging in formal education, that at times involved coming back to Japan, and engaging with the people in their networks (Table 4.6).

Table 4.6 SIEEs professional development

Although the data above presents a brief overview of the findings, a deeper analysis of the TEs narratives can help us better conceptualize Japanese TEs in SE Asia. The following section will highlight the theory emerging from the in-depth analysis of the narratives.

4.2 Conceptualizing Japanese Transnational Entrepreneurs in Asia

Through analysis, using data-led and research-led codes we present a conceptual framework for understanding the lived experiences of Japanese transnational entrepreneurs working in South East Asia. Figure 4.1 is an integrated model of Japanese SIEEs, highlighting the concepts at play and relevant theories that emerged. At the center of the framework are the Japanese SIEEs and their participation in transnational entrepreneurship . Surrounding the entrepreneur and his/her business(es) are the concepts and factors that impact upon innovation, creativity, opportunity recognition and their journey toward entrepreneurship. Follow our exploration of their narratives as we weave it together with current and emerging theory. All the TEs in this study show a heightened sense of entrepreneurial awareness, in that they are sensitive to culture, information and aspects of their contextual environment. The Japanese SIEEs work through De Koning’s (1999) process of information gathering, thinking through talking with mentors and their networks and finally assessing resources. Our findings also remind us of Ronstadt’s (1998) and Shane and Venkataraman’s (2000) work on the ‘corridor principle’ in which the experiences and knowledge gained in the past are considered to be ‘corridors’ that trigger the ability to recognize opportunity. Let’s walk the corridors these entrepreneurs have traversed.

Fig. 4.1

An integrated model of Japanese self-initiated SIEEs

Through this study we are trying to understand how people think so that we can better understand their actions in the context; we are concerned with entrepreneurial cognition. Entrepreneurs bring into existence future goods and services and we are interested in what is exploited by whom, how and with what consequences (Venkatavaman 1997: 120). Why do some Japanese individuals recognize these new business opportunities overseas and how does their knowledge trigger action and opportunity recognition as the ability to identify opportunity is the most important skill (Ardichvili et al. 2003). We argue, as do others, that prior knowledge and experience is key as it is through these experiences that individuals have more chance to take advantage of what they discover and have more intuition (Davidsson and Honig 2003; Venk 1997). The individuals have knowledge of their environment, culture, society, the world and this knowledge is external to the organization they create. Through engagement in their environment and through their experiences, they build alliances and partnerships; developing networks both professional and social, as well as meeting (and becoming) brokers and develop a mindset(s) (global, entrepreneurial, social, sustainable). This fluidity between factors gives rise to the ability to recognize opportunities, innovate, create and venture create. Throughout the process the entrepreneurs are always negotiating their identity and traversing a trade-off between feeling a sense of distinctiveness and of belonging. The complex interplay of these factors, we argue, is related to self-determination theory (Deci and Ryan 1995) and that a sense of meaning and success for the self-initiated expatriate entrepreneurs stems from the satisfaction of the three core needs; autonomy, belonging and competence.

4.2.1 Experience

In Japan, formal education is seen as fundamental to the development of society, with nearly 76% of high school student graduates going on to attend university. As we found through the narratives of SIEEs, they have varied backgrounds in their formal schooling.

4.2.1.1 Education

The majority of TEs attended university and just 5% earned a post-graduate degree. Of those who had a post-graduate degree, they used their specialized knowledge to set up their business, drawing on their new skills and knowledge often based on their first job field in Japan. Interestingly, none of the SIEEs interviewed studied for a qualification in entrepreneurship, business or an MBA, which could signal both the lack of such courses available in Japan and/or the unnecessary nature of further study in that domain to become a successful entrepreneur.

The entrepreneurs were primarily educated in a Japanese system. This is of vital importance as it highlights how their parents and society, in general, trust the Japanese education system. With the need to study Japanese language, especially Kanji, rigorously and methodically throughout one’s schooling, in cases where the SIEEs were raised overseas, they were educated in a Japanese international school system where they could develop Japanese language and culture skills. Of note is that the SIEEs themselves also follow the same pattern when educating their children. They choose to either educate their children in international schools in the host country or send their children back to Japan to be educated, often with their spouse, to ensure they receive a ‘Japanese’ education or sending them to live with Japanese grandparents. This highlights the high value placed on the Japanese education system in terms of trust and educational attainment.

However, when entering university, almost all the SIEEs took some time out of Japan to be educated overseas whether that may be as part of a short-term study abroad language program or a long-term international exchange or a working holiday or internship. These opportunities helped the SIEEs to develop their English language skills and increased their exposure to overseas, yet the SIEEs did not always specialize in English language, merely developing survival tools to function at a basic level overseas, instead, focusing on gaining more through the cultural exchange and exposure to new ways of thinking. Those interested in languages tended to study them later in life and often in the host country, as a form of self-development after relocation. We found that SIEEs in Thailand, Indonesia, China and Vietnam tended to continue foreign language study as a means of developing their business prospects; recognizing the importance of local cultural and linguistic knowledge in business success.

As they become SIEEs , they choose to engage in autonomous learning, usually through reading, which traditionally is an important aspect of Japanese visual culture . They also attend occasional professional development seminars, as opposed to returning to higher education to gain a formal, post-graduate education. The courses the SIEEs take are usually in Tokyo, thus they return to Japan for their professional development , trusting the quality of the program and finding content that fits their needs. The entrepreneurs have a strong will to develop themselves through their own self-directed learning. Their development is also somewhat social in nature, such as engaging with current networks or traveling overseas to broaden their horizons and gain new ideas. Through all these formal and informal educational experiences, the SIEEs are exposed to new ways of thinking, new ways of doing things and new ways of engaging with the wider world. These educational experiences at the beginning stages of their lives provide a base from which the entrepreneur can begin to develop his/her ideas, their human, social and cultural capital. The importance the Japanese place on their traditional schooling system should not be underestimated.

4.2.1.2 Workplace

The prior workplace experiences of entrepreneurs in general, especially their international business experiences, have been identified as an important influence on their future venture creation (Oviatt and McDougall 1994) primarily as it helps to shape opportunity recognition. As the importance of Japanese schooling cannot be underestimated, neither can the importance of the SIEEs first job in Japan. The respondents cite that more often than not, although their first workplace experience may not translate into a solid base for the field they enter as an entrepreneur, it still provides them with a solid foundation in Japanese business etiquette and manners. It was from the first workplace experience that many SIEEs learned how to function in Japanese society and simultaneously, what aspects of Japanese society they felt were at odds with their personality (which at times became a trigger to leave the workplace or Japan).

Similarly, the SIEEs who were seconded overseas as part of their early employment used that experience as leverage when starting their venture. Additionally, some SIEEs took advantage of a company sabbatical or gap year opportunity, such as CBD-4, whose sabbatical lead him to quit his position. An SIEE’s experience overseas for work increased their social, economic and cultural capital, allowing them to begin building networks that they would use in the future when setting up their businesses. These overseas postings we key ‘ah-ha’ moments in the development of their entrepreneurial efforts. Both in Japan and in postings overseas, the entrepreneurs initially held junior roles within the company before being promoted, often with their first major promotions occurring before 30 years old, and this exposure to different areas of the company with different levels of responsibility helped to expand the SIEE’s knowledge base.

Mentors figure heavily in the SIEEs stories. Despite some SIEEs not having a mentor in the early part of their career, when they become an entrepreneur it is then that they seek out guidance and in the majority of cases it is a fellow Japanese, highlighting the deep trust between members of the same culture and the necessity to be guided by someone familiar to their background and culture. Although not classified as a mentor in the traditional sense, many of the SIEEs spoke of the influence of a Japanese business guru as a kind of role-model and although they may not have a personal mentor-type relationship with the guru, reading their work had a strong impact on their motivation. In Western contexts, business leaders such as Steve Jobs, Mark Zuckerberg and Richard Branson are seen as influential role models for entrepreneurs. Yet, in Japan, inspiration often comes from fellow Japanese business people (with exception of one of the SIEEs who was inspired by reading Steve Jobs’ autobiography), thus highlighting the need to share the narratives in this book with young people and/or aspiring entrepreneurs for them to have tangible Japanese entrepreneurial role models, who are often lacking in their everyday world. Other mentors or role models came from close friends or family, such as CBD-1’s French aunt.

The importance of mentors also reflects the Japanese societal model of sempai-kohai, junior and senior-based seniority system. Of note, is that female Japanese SIEEs tend to seek out guidance from other women, such as Case CBD-2, while men seek out other men. There were few examples of entrepreneurs seeking guidance or mentoring from the opposite sex such as TLD-1 who had the support of TLD-7. In cases where the spouse was a confident, it was also the case that the spouse was an entrepreneur such as Case IND-6 and Case IND-7. A small percentage of the SIEEs cited no mentor, preferring a ‘lone ranger’ type decision-making process, where he/she goes with their gut, not even consulting with their spouse or family members, such as Case CBD-5 and Case V-Hanoi-3.

The influence of growing up in an entrepreneurial environment also cannot be underestimated. The SIEEs discussed being exposed to risk-taking and hard work through their parent’s small businesses. Oftentimes, conflict arose when the SIEEs was deciding whether to succeed the family business, more often than not, choosing to seek their own path and business overseas, such as Case MYM-3. Even when some of the entrepreneurs developed knowledge and skills through working for their family business, they chose to eventually leave the business to pursue their own projects.

4.2.1.3 Life

In terms of life experience, SIEEs in this study have differing experiences of marriage and divorce, yet for all, the influence of their friends and family in generating life experience cannot be underestimated. The common element of life experience between the SIEEs is the influence of aging parents. One common concern for all expatriates whether they are entrepreneurs or otherwise is the health and wellbeing of their parents. In an aging society like Japan, with a somewhat limited social security system in terms of availability of sheltered accommodation, hospice care and nursing homes, often the responsibility for care falls with the children, specifically the oldest son. Thus, if that child is overseas and unable to care for the parent, this can put stressful demands on the entire family. From the SIEEs perspective, they experience feelings of guilt, fear for the future and an underlying concern that maybe they should be at home. Even if the parent encourages independence, such as Case V-Hanoi-3, the child still has a moral sense of responsibility to be a care giver. This life experience can both spur the SIEEs on, as they want to create a stable financial environment for their family or may cause them to have doubts about their future as SIEEs.

Life experience through romantic relationships is also a fundamental component to the development of the entrepreneur. We can see that the overwhelming majority of males in this study are married with children, fulfilling Japanese societal expectations. Oftentimes their wives take a peripheral role to their endeavors, being housewives, trailing spouses or in a number of cases, living apart from their husbands, often back in Japan. As can be seen through the cases, some female spouses return to Japan to educate their children in a Japanese education system, such as Case IND-3. This shows the dominance of males in society and the prominence put on their career. Of those SIEEs that are currently single, many citied the desire or decision to find a partner as one of their concerns. There is a common line of thinking that the men are seeking some kind of stability in their home lives that may give them more legitimacy as entrepreneurs. Having a partner also expands one’s social and professional networks, with many of the SIEEs taking advantage of their wife’s extensive networks. Especially when a Japanese SIEEs marries a host-country national, they are then able to tap into a deeper level of culture within the country, gain respect from the host national clients and colleagues, show their level commitment to the country and build trust within new networks , such as Case V-Hanoi-3. Intercultural marriages of this nature are powerful antecedents to the expansion of business opportunities in the new country.

On the other hand, the majority of females in this research are single, including divorced and widowed. Of those females who are single, they have made their career development a priority over their romantic relationships. This follows a general trend of women becoming secure in their career before seeking a mate, but runs contrary to the traditional Japanese approach of a woman finding a husband soon after starting their first job and then quitting to become a housewife. The SIEEs in this study are also putting off childbirth as their career takes priority, such as Case V-Hanoi-4. They network within close groups of female friends and family and focus their attention and energy on themselves and their businesses, such as Case MYM-4.

As for those SIEEs who are married, two of the cases in this study are married to Japanese whom are also SIEEs. In the case of CBD-6 and CBD-7, they met in Japan and traveled together after quitting their jobs in Japan. Through this experience, they felt comfortable knowing that as a team, they could live and work in a foreign country with the support of each other. Case CBD-7 felt a strong sense that she would feel unfulfilled in a life back in Japan. Looking at her husband for inspiration, decided that she too could set up her own bakery, so with his support and backing she made this a reality. The couple in IND-5 and IND-6 met in the host country and became business rivals before becoming romantically involved. Their relationship further developed, they got married and now they work on separate and joint business projects.

The experience of tragedy in relationships also inspired some of the SIEEs to pursue their businesses. In the case of MYM-4, she lost her Myanmar national husband in an accident at sea and this further inspired her to develop her business, choosing to stay in Myanmar not return to Japan, and since this decision, the focus of her energy has helped her business go from strength to strength. Similarly, Case TLD-1 in Thailand is a success story in turning life around. After reverting to alcoholism, Case TLD-1 was able to draw on something inside herself to change her life through entrepreneurship. Through her exposure to overseas, she felt that she would ‘fit in’ better in an overseas environment as opposed to Japan. She was also able to see that she was a survivor and capable of many things, recognizing that she had skills and talent in communication, sales and knowledge of her customers. In choosing to develop a health and wellness business, she was able to tap into her negative experience to start an authentically-driven company. In both cases, the women were able to experience tragedy but harness the negativity and turn it into a positive driver for success. Thus, it is important to note that although marital status is no indicator for success, one’s romantic relationships provide important experience that an entrepreneur can draw on in the future; both negative and positive. It is part of the arch of life, experiences from which one can grow.

In a similar manner, the SIEEs who have had children cite that the experience of having them fundamentally changed their outlook on life, particularly when it comes to financial security. Being SIEEs can be risky in terms of finance and while single or childless, the entrepreneur can take risks with money, however, all the Japanese SIEEs with children cited the heavy sense of responsibility to provide for their spouse and children, to enable them to have the same opportunities offered to them when they were growing up, such as Case C-3. Living in a different country allows a child to grow up bilingual and bicultural, although as the entrepreneurs expressed, this can be costly as private education is often necessary in order for a child to maintain their Japanese culture and identity. Hence, they decide to send the children back to Japan for the children’s education, such as Case TLD-7. This again highlights the importance and trust that Japanese put on in their education system. The need to provide children with opportunities could be said to make their parents slightly more risk averse as the responsibility weighs heavily on their future business planning and need for sustainability.

In the same way that relationships have an impact on the entrepreneur, so does their exposure to overseas at an early stage of their life. Whether that may be in a child’s early years, as they travel with their parents either for leisure or as part of their job, they study abroad in high school or university or go backpacking independently, these experiences help mold the SIEEs worldview and is a significant factor in their decision to later pursue a career overseas such as Cases CBD-2, MYM-2, IND-2, PNN-1, etc. These experiences remove barriers and open minds. From an educational perspective, travel overseas, in whatever format and whether recognized at the time or not, is an experiential learning experience. People learn by traveling and gain knowledge through ‘meaningful discovery’ (Boydell 1979: 19). Kolb’s (1984) model of experiential learning combines experience, perception, cognition and behavior to create learning. Through the SIEE’s narratives, we can see how the entrepreneurs learned through their overseas experiences and fed that knowledge back into their business development. A key aspect of experiential learning overseas is reflection and again, as we can see through the narratives, on return to Japan, the SIEEs reflected on their experience, drawing out the benefits to support their overseas venture creation. Table 4.7 highlights the knowledge and skills gained from travel and exposure to overseas.

Table 4.7 Learning outcomes from exposure to overseas

Based on an understanding of Kolb’s model, the SIEEs were able to have concrete experience overseas in the early part of their lives, they were able to reflect and observe the experience, conceptualize their learning and then engage in what Kolb terms, active experimentation, planning, trying out what they learned through their overseas venture creation.

Similar to the concept of experiential learning is the idea of transformative learning (Morgan 2010). In transformative learning the traveler ‘changes’ and becomes a ‘transformed home comer’ (2010: 252). With some SIEEs stating they were not sure if they could ‘fit in’ to Japan again after their exposure to overseas, this highlights the transformative nature of their experiences, such as Case HKG-1. Particularly in terms of transnational entrepreneurs, this exposure to overseas at an early stage in one’s life, we argue, is a key driver for entrepreneurship.

4.2.2 Motivation

How does motivation figure into the lives and actions of SIEEs? What triggers an entrepreneurs’ pursuit of opportunity and risk taking? We found that despite the overwhelming amount of literature that contends that financial reward is the primary motivation behind an individual’s decision to engage in entrepreneurship, the majority of our SIEEs do not cite financial gain as their initial motivation, however, once they have passed the threshold stage, the economic theories of entrepreneurship pervade and if the anticipated current profit received from the entrepreneurship is greater than the individual received as a previously salaried employee in Japan, then the entrepreneur views this as success and motivation to continue, such as Case TLD-6.

According to research on motivation by Deci and Ryan (1985), extrinsic motivation is considered to be when one acts in a certain way based on an external source and external rewards, such as Case V-HCM-2. Whereas intrinsic motivation is the opposite, when the drive to behave in a particular way comes from an internal source; our interests, sense of morality, our mindset.

Additionally, we can examine the push and pull factors driving SIEEs. For example, the possibility of financial reward from a particular outside source could ‘pull’ the entrepreneur toward a particular context (Katz 1994), whereas a ‘push’ would be a negative situation that the entrepreneur encounters and thus wants to move away from, such as Case PNN-2 and Case V-Hanoi-5. A number of SIEEs stated the need to ‘take a break’ from Japan or to ‘escape’ everyday life. In these scenarios, a mundane life is seen as a push toward life in another country as maybe one feels they are not being adequately rewarded financially in their work, or intrinsically they feel no emotional satisfaction with their life.

Of great interest to us as researchers was the finding that the SIEEs had high levels of passion and positivity toward the pursuit of their entrepreneurial goals. We will address the connection between passion and self-determination theory (SDT) later in this chapter, but for now, let’s focus on positivity. Entrepreneurship has been described as an emotional roller coaster whereby the entrepreneur experiences various ups and downs, positive and negative experiences and varied emotions (Boyd and Gumpert 1984; Baron 2008). Fredrickson’s Broaden and Build Theory (1998) came to mind when analyzing the SIEEs career anchors as he assumes that positive emotions influence cognition by broadening an individual’s thoughts and actions. We found that when the entrepreneurs felt like their work was of value they were passionate and positive about their experiences. Their work became an integral part of their identity and they often became akin to the personification of their company. Moreover, the more positive experience the entrepreneur encounters, the more positive and passionate the state they become. In exploring the entrepreneur’s career anchors we considered using Schein’s categorization of: (1) autonomy/independence, (2) security/stability, (3) technical-functional competence, (4) general managerial competence, and (5) entrepreneurial creativity, (6) service or dedication to a cause, (7) pure challenge and (8) lifestyle; however, after engaging with the data we found three primary categories and sub-categories as a different way to conceptualize the SIEEs career anchors (see Fig. 4.2).

Fig. 4.2

Source Authors

Conceptualization of Japanese SIEE career anchors.

Of most interest was that the majority of career anchors of the 51 entrepreneurs spoke in general terms of self-belief, social responsibility and optimistic outlook, with the three concepts emerging strongly; maintaining a positive attitude, determination and collaboration. The career anchors also go some way to ascertaining the psychological well-being of the entrepreneurs. The overwhelming feeling of positivity from the entrepreneurs was infectious. In a modest culture like Japan, these individuals certainly stand out with what could be categorized as a more westernized view of positivity and optimism. Connected to this is what appears to be a deep level of self-reflection, self-awareness and self-efficacy, which was a common trait among all the SIEEs interviewed. This understanding of self and need for autonomy will be discussed further on in the chapter; however, it must be noted that this focus on oneself and understanding oneself while also having an interest in others helped us to better understand the mentality and mindset of the individuals.

In addition to personal career anchors , a number of SIEEs drew on popular phrases by famous business gurus and famous people, both Japanese and non-Japanese and traditional Japanese idioms, such as ichi-go-ichi-e, by Case MYM-7, which highlight their philosophical nature and connection to their Japanese culture and heritage.

4.2.3 Networks and Brokers

Japanese businesses are well known for their networks and the management of knowledge within and between each other. There is frequent sharing of ‘tacit and explicit knowledge’ among firms (Glisby and Holden 2003: 30), which depends on the strong intercorporate networks at play in Japan. As Whitley (1992) ascertained, quoted in Glisby and Holden (2003: 31), “one of the most striking features of Japanese business is the pervasiveness of mutual obligation networks and the high level of interdependence.” In a business context, Nonaka (1991) found that employees have a sense of commitment and identity to their company and once part of the ‘family’ per say, they exhibit ‘communitarianism’ (Trompenaars 2000)—commitment and loyalty. As Glisby and Holden (2003) confirm, “Japanese are inclined to build strong interpersonal relationships with others with whom there is a strong sense of shared fate: people…in the same company” and in this sense, when expatriates are hiring new staff or engaging with new clients, they may want to ensure that the new hire or partner will ‘fit’ into the organization and their culture . As such, relying on expatriates already working in the host country to help build connections may help to maintain the balance of ‘harmony in human relationships’ (Glisby and Holden 2003: 30), such as Case TLD-5.

Bhappu (2000: 410) illustrates that the “Japanese family is an institutional logic for Japanese corporate networks and Japanese management practices” and that this is connected to the word ‘i.e.’ which is the Chinese character of people under one roof (Kumagai 1992: 181). ‘i.e.’ or family in business and organizational settings can be “characterized by a network of hierarchical ties among people” (Bhappu 2000: 412). Historically, in organizations, recruitment into the corporation would have commonly been by birth, showing the deep familial ties and commitment to the organization. Therefore, with members of the organization so similar to each other, there is undoubtedly a relationship that creates somewhat of an ‘institutional logic’ and awareness of management practices (Scott 1995). This is known as ‘ko’on’ (孝恩) and is characterized by ‘reciprocity and obligation’ (Bhappu 2000: 412), where ‘achievement is secondary to trust,’ such as TLD-6. As such, it is interesting to explore the networks at play among Japanese SIEEs and how they develop a sense of reciprocity and obligation among their expatriate business networks .

Social network theory has been an important part of research in entrepreneurship since Busenitz et al. (2003), Liao and Welsch (2005) and Williams and Lee (2009). The relations that entrepreneurs have with others have an impact on everything from opportunity perception and recognition to access to resources. Research on strong and weak ties between individuals also has an impact on the entrepreneurial opportunity recognition process (Ozgen 2003; Ozgen and Baron 2007). What are considered to be contextual factors also influence individual motivation, thus the environment and actors within the environment are key elements to understand (Krueger 1998).

Through an analysis of the networks , both social and professional, and the clear emergence of brokers among the Japanese SIEEs, we can appreciate the applicability of social embeddedness theory (Granovetter 1985). This theory suggests that entrepreneurs take part in specific economic networks that are tied to their cultural, ethnic identity to aid business development (Rath 2006). Again, this supports the constructivist view that these entrepreneurs act within various social networks, they are embedded in different discourses and social structures which are connected to trust and understanding cultural norms and expectations (Portes 1995).

According to Burt (1992), network ties are information and resources that individuals can access in competitive situations such as venture creation. These ties can help shape one’s identity, build social capital and increase success. Typical typologies of networks from the social sciences are highlighted by Borgatti (2009) as seen in Table 4.8.

Table 4.8 Typology of networks

There are networks that are based on similarities such as when we share the same space, both temporal and spatial, we may be members of the same clubs or groups and/or we may share the same attributes in terms of gender or attitude. Networks concerned with social relations include family networks, the role of our bosses, friends of bosses, colleagues, and so on; sharing the things we like and dislike and what we know (cognitive). Interaction networks are the kinds of communication we engage in; who we talk to, give advice to, help, and so on. Flows refer to the flow of information which may be personal or job related. When we explore networks among people we can draw on these typologies to ascertain what kind of networks and communication are occurring in the workplace and during venture creation.

When considering professional networks, such as WAOJE, the majority of SIEEs associate with their clients, Japanese business associates, expatriate business people and other entrepreneurs, highlighting the strong reliance of the expatriate network. Similarly, in terms of their social networks, the SIEEs tended to network within their expatriate community, friends through work, clients and other entrepreneurs. The social and professional networks were highly intertwined. Figure 4.3 shows the integrated networks the SIEEs immersed themselves in as they started their business.

Fig. 4.3

Source Authors

Integrated networks of Japanese SIEEs in South East Asia.

Social and Professional Networks

The importance of social networks to the entrepreneur has been established by numerous researchers (Aldrich and Zimmer 1985). As can be seen in the narratives, the SIEEs social networks encapsulate both formal (business contacts, investors, NGOs, etc.) and informal (family, friends) sources. The level of interconnection within the network and the intensity varies. Sequeira and Rasheed (2004, p. 89) suggest that strong ties are necessary for start-ups but can be unhelpful at ‘break-out stages’ which could be why we see many of the entrepreneurs express that they didn’t have a mentor at the initial stages and networked either heavily with their spouse or business partner at the initial stage. What is common among the Japanese SIEEs is the importance they place on Japanese family and Japanese community entrepreneurs, whether that may be Japanese expatriates in the same country or Japanese business colleagues. As social network ties often depend on the trust of its members for its sustainability over time, trust is a significant resource for venture creation as it could help to give competitive advantage (Smith et al. 2001; Aldrich and Zimmer 1986; Honig 1998). As a rebuttal to this there is a worry that an individual’s personal freedom could be curtailed as dependence solely on Japanese-related networks could result in other groups and individuals feeling ostracized and could also stifle creativity and innovation. Yet as the majority of entrepreneurs have set up businesses catering to the needs of expatriates and Japanese businesses, this high level of conformity to Japanese way and perception of networks could be seen as beneficial.

Brokerage

Boissevain’s (1974: 148) concept of a ‘social broker’ is perhaps particularly appropriate to SIEE networks outside Japan, as a social broker ‘places people in touch with each other either directly or indirectly’ and these brokers are believed to build strong networks . Additionally, the term ‘cultural broker’ is also pertinent as it describes people who are able to bridge cultures and act as agents of change. We could see this most clearly in Thailand, where a linchpin Japanese cultural broker helped to facilitate new Japanese SIEEs enter the Thai market, in Myanmar where Japanese SIEEs businesses are highly connected to Japanese multinationals and large-scale businesses operating in the country and in Indonesia where Japanese investors need to rely heavily on a host-national to be able to successfully navigate the paperwork and regulations for business development. As such, the presence of a broker is essential. At times this broker is another Japanese SIEEs while at others it is a host-national.

In an interesting turn, recognizing the need for network and brokerage development, the SIEEs themselves made a business out of sharing knowledge through networks; setting up free papers, such as Cases V-Hanoi-4, MYM-3, IND-2 and PNN-1. The concept of a ‘free paper’ is relatively unique to Japan. Japan has a tradition of free magazines and newspapers to share content relevant to local people. They often include advertisements for local businesses and act as a promotion tool and source of knowledge and network creation. Despite the trend of moving digitally, Japan still has an appetite for paper-based initiatives such as free papers and in emerging economies, where the internet and digital content may not yet be as advanced. A free paper is a useful publication for expatriates to get the information necessary to run their businesses and live in the host country.

4.2.4 Knowledge

In order to identify opportunity, entrepreneurs must have knowledge and as Gaglio and Katz (2001) argue, if we understand how an entrepreneur identifies their opportunities we will understand the base of entrepreneurship. Therefore, how and when do entrepreneurs gain knowledge? As we have argued above, their knowledge is shaped through their education, work and life experiences, throughout which they build valuable networks where they further construct knowledge with others, recognize opportunities and take action akin to findings by Hayek (1945), Gimeno et al. (1997) and Vankataraman (1997).

Similarly, prior knowledge is also important in creativity (Amabile 1997) as individuals can make links between things they may not have had awareness of before, thus this leads them to pursue new opportunities. Some research suggests that feeling overwhelmed by knowledge may push some into a mental rut, where the individual retreats from seeing out new opportunities purely because they feel overwhelmed, yet as we can see in our cases, the generalist-type entrepreneurs tend to stay with what they know, their safe-space, if you like. Their ventures rely on their tried and tested knowledge; therefore they are able to take risks in implementing them overseas as there is a degree of security.

In terms of knowledge of their environments overseas, as they relate to the culture , groups and places they choose to start a business, the Japanese SIEEs have mostly all had some prior exposure to the country through work, travel or study abroad, and thus when they relocate it is not the first encounter with the country. As such, when we think of the term ‘place’ the location of their business is selected by recognizing favorable economic conditions, and availability of networks within which they integrate. In terms of services such as education , healthcare, housing and connectivity, the SIEEs in this study seek out ways to replicate their Japanese environment, choosing to return to Japan to take advantage of Japanese health services and education systems due to the high level of trust they place in them and the perceived quality of service they receive. Similarly, in general, the SIEEs do not place a high degree of importance on the political leadership, diversity, access to resources or engagement within the host country as to all extents and circumstances they remain quite enclosed in a Japanese bubble. Yet those SIEEs that do engage more with the host country political networks in order to sustain their business, they are certainly aware of tensions in the region with China and how changes in neighboring political regimes would impact on their business. This prior knowledge of societal issues can help individuals to identify opportunities and spot risks before they arise.

The physical attributes of the location, such as feeling authenticity, buzz and aesthetics, also do not play a major role in decision making, aside from some of the SIEEs in China who feel the need to be in Shanghai in order to advance their business, and those in Hanoi, who see significant differences between opportunities available in Hanoi and Ho Chi Minh.

Culture and International Knowledge

As Margalit and Halbertal (2004) ascertain, culture is a fundamental part of our being and the ability to conserve our own culture, enables the members of a community to develop and secure their personal identity. As such, we can see very strong links and networks between expatriate TEs as they seek to maintain their Japanese cultural identity and that of theirs and children. As we discussed previously, international knowledge and exposure to overseas are essential for the development of TEs as this allows them to learn how to effectively enter a new foreign market to build strategic alliances within the country.

4.2.5 Mindset

A mindset is “a predisposition to see the world in a particular way [and] to perceive and reason in certain ways” (Waite 2014, p. 32). We argue that all our SIEEs exhibit two or more of these types of mindset; entrepreneurial, global, social and sustainable. The American Heritage Dictionary (2016) defines a mindset as, “a fixed mental attitude or disposition that predetermines a person’s responses to and interpretations of situations or an inclination or a habit.” In her seminal work, Dweck (2006) describes two types of mindset: a fixed mindset and a growth mindset. In the fixed mindset, people believe their basic qualities are fixed traits, while in the growth mindset individuals believe their abilities can be developed through dedication. Common sense suggests that an entrepreneur would likely have a growth mindset and a resilience that is necessary for success. Additionally, a successful transnational entrepreneur must surely have a global mindset.

Entrepreneurial Mindset

Numerous scholars have defined an entrepreneurial mindset (EM) (Krueger 2000; McGrath and McMillan 2000; McMullen and Shepherd 2006). McGrath and MacMillan (2000) provide five characteristics of the EM: (a) the passionate seeking of new opportunities; (b) the enormously disciplined pursuit of opportunities; (c) the pursuit of only the best opportunities instead of chasing after every option; (d) the focus on adaptive execution; and (e) the engagement of energies of everyone in one’s domain. In Ireland, Hitt and Sirmon (2009) state that EM is the ability to recognize entrepreneurial opportunities, have a sense of alertness, logic to deal with uncertainties and an entrepreneurial framework within one’s mind.

Etemad (2004) summarized highlights of selected entrepreneurial characteristics (Table 4.9). These help to provide a contextual view of the entrepreneur and how he/she is embedded in his/her environment in addition to the impact of his/her upbringing.

Table 4.9 Entrepreneurial characteristics

What is common among all definitions is that the entrepreneur is able to open to explore, recognize and take opportunities. In terms of international entrepreneurship, SIEEs explore, recognize and take opportunities in an international context. In this case, we can say they should not only have an entrepreneurial mindset but must also have a global mindset.

Global Mindset

Gupta and Govindarajan (2002) in their seminal work on cultivating a global mindset define a global mindset as one that combines an openness to and awareness of diversity across cultures and markets with a propensity and ability to synthesize across this diversity. If we explore work on global mindset with international management, Levy et al. in Hitt et al. (2007) define global mindset as a “highly complex cognitive structure distinguished by an openness to and expression of multiple cultural and strategic realities on both global and local levels and the cognitive capacity to moderate and assimilate across this diversity” (p. 217). Javidan’s Global Mindset Inventory measures attributes in three areas: intellectual capital, psychological capital and social capital. Global intellectual capital relates to cognitive complexity, cosmopolitan outlook and the ability to be global business savvy. Psychological capital relates to a passion for diversity, a sense and quest for adventure and self-assurance, while a global social capital is the propensity to have intercultural empathy, interpersonal impact and diplomacy. It would be expected that transnational entrepreneurs would exhibit strong self-efficacy and confidence when operating in a global cross-cultural context and the ability to deal with failure in a cross-border context (Fig. 4.4).

Fig. 4.4

Source Based on Hitt et al. (2007)

Aspects of global mindset.

Even though research on individual antecedents of individual attributes has been largely inconclusive, there remains an interest in attempting to uncover such constructs (Stewart and Roth 2001).

Social Mindset

Bornstein (2007) conducted extensive research on the social mindset of social entrepreneurs in different contexts. He concluded with six characteristics that are exhibited by extremely successful social entrepreneurs: (a) willingness to self-correct; (b) willingness to share credit; (c) willingness to break free of established structures; (d) willingness to cross-disciplinary boundaries; (e) willingness to work quietly; and (f) strong ethical impetus.

His research found that “one of the primary functions of the social entrepreneur is to serve as a kind of social alchemist: to create new social compounds; to gather people’s ideas, experiences, skills, and resources in configurations that society is not naturally aligned to produce” (p. 236) and that most have a strong desire to restore the equilibrium of justice in society and to solve societal problems.

Sustainability Mindset

The essence of sustainability is to achieve and improve the quality of life for all. It is concerned with social equity, sufficiency and opportunity, engagement and democracy, communication and the cooperation between individuals and organizations. Sustainability and having business leaders with a sustainability mindset will help the development of not only the population and resources on this planet but also technology (Mezher 2011). Having a sustainability mindset helps others to change their behavior (Mezher 2011). Therefore, it is vitally important in the twenty-first century for CEOs to have a sustainability mindset that they can use to influence the direction of their organization.

We found that the TEs exhibit various attributes related to four types of mindset. The entrepreneurs in Cambodia were slightly different to TEs in other countries in that more of them were related to social entrepreneurship endeavors. We can see through this study that when a global mindset (an awareness of internationalization), a social mindset and a sustainability mindset are combined, individuals can become hi-impact SIEEs (Fig. 4.5). The mindset attributes of these individuals are a combination of those outlined by Javidad (2007) and Etemad (2004), in conjunction with Bornstein’s attributes of social mindset, and research on sustainability. These entrepreneurs exhibit traits such as a belief in their own self-efficacy and an entrepreneurial personality (Hartigan 2006). We can see that the individuals have high-impact social networks and are rich in social capital; they are action-orientated and have different measures of connectivity; formal ties, informal ties and intermediary ties which they use to best effect.

Fig. 4.5

Source Authors

Mindsets of SIEEs.

4.2.6 Opportunity Recognition

According to Baron (2006: 104), opportunity recognition requires the ability to “connect the dots between changes in technology, demographics, markets, government policies and other factors” and it is this that SIEEs in this study do very well. As we discussed in Chap. 2, there is debate as to whether opportunity is objective and waiting to be ‘discovered’ or more subjective and constructed through individual’s interpretations. In our research we argue that they are co-constructed and emerge when the SIEEs connect the dots of his/her experience (life, work, education) , networks , identity, motivation, etc.

4.2.7 Innovation and Creativity

Entrepreneurship, creativity and innovation drive socio-economic development (Carayannis et al. 2003; Kuratko 2012). In this study, we take creativity to be the generation of new ideas, for example, in one of our cases an entrepreneur decides to write, publish and distribute a free paper in the Philippines as there is not one yet available in this context. This is a new idea for the context but it is still an imitation of an idea in another context. It is possible as the entrepreneur is able to interact with others in the same organizational field (Powell and DiMaggio 1991) to make it a reality. Sawyer (2006) ascertains that creativity relies on the socio-cultural processes that are at play in our convergent and divergent brains when they work together.

Innovation, we consider, is the exploitation of new ideas, again a social process that relies on collaboration and the leveraging of various resources (Sayer and Walker 1992). Innovation is related to problem-solving, organizational models and the generation of values in a diversity of contexts (Krueger 2005). Amabile (2012) sets out a definition based on three factors: knowledge, creative thinking and motivation. In both innovation and creativity there are many actors, social networking and communication at play (Freeman 1991). Through this study we can see the individual factors at play when an entrepreneur decides to start their business and understand the environment in which he/she works. Research suggests that entrepreneurs from highly developed countries are more likely to engage in innovative rather than imitative activities, however, as can be seen through our study, many of the actual business ideas are imitative, but the context in which they are delivered (as an expatriate in a new host country) is innovative. On reflection, more research could have been done in the fields of innovation and creativity in this study.

4.2.8 Venture Creation and Financing

When entrepreneurs start their businesses, access to capital is pivotal for a successful launch. However, it is also the area of most concern for entrepreneurs (Chaganti et al. 1995). Through the narratives we were able to observe that the entrepreneurs did not have an adequate understanding about sources of capital, highlighting a knowledge finance gap. The SIEEs followed a traditional model of self-funding their ventures in the beginning stages with less than 2% using angel investors or crowdfunding. Bootstrap financing, which is often one major source of finance for entrepreneurs, was not always available to SIEEs but many took advantage of informal arrangements such as sharing work space and loans from friends or relatives (Neeley 2003; Landstrom and Winborg 1997). They did not have access to many capital markets as their initiatives were international and cross border in nature. A Japanese bank would be unwilling to finance an overseas venture and likewise the host country would also reject any funding application on account of the SIEEs being new to the country, without a credit rating. In his research, Thorne (1989) identified that the method the entrepreneurs use when raising capital is indicative of their character as a business owner and as we see from our study, the majority of these SIEEs were prepared to put their livelihood and savings on the line in pursuit of their business; essentially, we can assume that the entrepreneurs are risk-takers.

4.2.9 Identity

We are now arriving at one of our key arguments; that identity is a key contextual factor in venture creation among Japanese SIEEs in South East Asia. Identity is the meaning that we attach to ourselves (Gecas 1982) when we ask ourselves, ‘who am I?’ We consider identity not only as entrepreneurial identity but an individual’s identity as a ‘Japanese;’ identity as it relates to one’s education background; identity as it relates to one’s peers; identity as related to language; and identity as related to family background. All of these ‘identities’ are the result of an individual’s socialization and environment and that ‘identity’ is powerful agent driving entrepreneurial action. We recognize the complexity of identity as a fluid and dynamic construct that is a frame of reference for entrepreneurial decisions, but considering it in such research allows us to better interpret social situations and understand what makes an entrepreneur function in the way they do.

Self-efficacy is influenced by personal, cognitive and contextual factors (Bandura 1997) and we argue that the Japanese SIEEs in this context may have a heightened perceived self-efficacy due to their mixed parentage, various educational experiences and work experiences inside and outside Japan. It appears that the SIEEs have strong knowledge of self as they have had to constantly negotiate their identity, they appear highly connected to their culture , identity and Indonesia, as compared with Japanese SIEEs in Cambodia, for example. Therefore, we argue, they have less structural holes (Burt 1992) when conducting business. They are highly creative individuals who have been afforded the opportunity to question their identity, purpose and experiences.

Bandura’s (1997) work on self-efficacy highlights four sources of efficacy beliefs; mastery experiences, vicarious experiences, verbal persuasion, and emotional and physiological states. We argue that in the Japanese SIEEs we have observed in South East Asia, the source of self-efficacy is through their various experiences; workplace, education, life, their interactions with their environment and the networks around them. Through their varied educational experiences, travel abroad and workplace interactions, they are able to recognize role models that can help them to see their capabilities. In addition, mastery in a particular field gave all the SIEEs the confidence to start their own businesses. Once they were on the path to success, mentors provided verbal persuasion and support during times of emotional and adjustment difficulties.

Thus, if self-efficacy is also defined as an individual’s belief in particular targets and tasks (Krueger 1998), these attitudes go some way toward recognizing opportunities. As shown in research by Hostager et al. (1998) and Pech and Cameron (2006), if an individual has successful experience and they have a great ability to seek out opportunities, in addition, elevated self-efficacy leads to an ability to recognize entrepreneurial opportunities (Ozgen 2003; Shane 2000; Ucbasaran et al. 2009). We argue the Japanese SIEEs have a heightened sense of self-efficacy. In some cases, there is a sense among the SIEEs that he/she doesn’t ‘fit’ into Japanese society and that this feeling of inadequacy is also connected to a heightened and perceived sense of self. Figure 4.6 shows the system of self-efficacy that we have observed among the cases.

Fig. 4.6

Source Authors

The system of self-efficacy among cases of Japanese SIEEs.

However, returning to the focus of identity, our identity often instills in us a sense of belonging or even uniqueness. By having a particular identity, we are able to fit in a particular group. Therefore, in having a unique identity one may not ‘fit in’ and there may be an unmet need for belonging. Ashforth et al. (2000) discuss an entrepreneur’s micro-identities, explaining that an entrepreneur will need to balance their unique identities that make them trailblazers and pioneers with their sense of belonging and ability to fit within a particular identity group (Table 4.10).

Table 4.10 Managing multiple identities as an SIEE

In the narratives we explored there was an observable tension between the unique or distinctive identity of the entrepreneur and their belonging identity. As an example, many respondents stated that they felt they would no longer ‘fit’ in Japanese society having been an expatriate for so long; yet, they still were seeking a sense of belonging to both their country and expatriate groups within their new host country. They felt a sense of distinctiveness that they needed to trade-off with feelings of the need to belong. This is not uncommon. Brewer and Pickett (1999) found that to be distinctive is a universal human motive and it is separate from self-esteem. As can be seen in these cases, this distinctiveness from the Japanese ‘norm’ helps the entrepreneur to develop a meaningful entrepreneurial identity that maybe others cannot develop. The SIEEs self-identify with their Japanese expatriate groups in their host countries, and akin to social identity theory (Tajfel and Turner 1986), they view these groups extremely favorable as it also adds to their sense of self-worth. Thus, it fits into theory that people have a strong need to belong, and as a result tend to be more positive (as can be seen through the career anchors).

Further examining Fig. 4.7 we argue that Japanese SIEEs need to address the following imbalance to achieve optimal distinctiveness for their identity and balance their multiple micro-identities. In terms of distinctiveness, the SIEEs have an identity as an entrepreneur; this sets them apart from their previous identity as an employee in Japan. They are also a foreigner in their host country. They achieved freedom from the traditional working structures of a Japanese corporation and they are developing a new vocational identity and identity as a manager. In terms of belonging, the SIEEs will always visualize themselves as Japanese. Their desire to return to the safety net of Japan for medical care and education highlights the sense of belonging they feel to their home country and nationality. They belong to their family; as a parent, spouse, child, which makes them feel a sense of security but can also cause tension. The TEs feel a sense of belonging to a globalized world; as an expatriate they are also a global citizen. We also found a number of entrepreneurs who felt a sense of belonging engaging in their sports clubs or with people associated with their hobbies. The SIEEs must manage all their identities through their engagement of entrepreneurship and compartmentalize some and integrate others when necessary (Shepherd and Haynie 2009) to avoid conflict.

Fig. 4.7

Source Authors

Competing identity issues among Japanese SIEEs.

4.3 Self-determination Theory (SDT)

As we coded each case, we gained a deeper insight into the people; the men and women who made a decision to leave Japan to set up a business venture overseas. How they think? What drives them? How they make decisions? To share their stories, it became evident that self-determination theory (SDT) was the lens through which we could comprehend and convey their activities; SDT could help us to explain our findings. We became more concerned with motivation; how did these entrepreneurs move themselves? How do they influence others around them to act? What makes these entrepreneurs different from other? As we mentioned earlier in this chapter, people are often motivated extrinsically, by reward, but what was apparent in these entrepreneurs is that they are primarily motivated from within by their interest, their curiosity of abroad and their experiences and it is through these motivations that the entrepreneurs appear to sustain their passion and determination to succeed as transnational business people. This way, we would discover fits within the framework of self-determination theory (SDT).

SDT is a framework through which people study human motivation and personality. It combines motivation studies with people’s experiences of the social and cultural facets of their life. Most importantly, in relation to our study, it helps to understand the individuals’ experience of three key psychological needs: autonomy, competence and relatedness (which we term belonging in this study), how they relate to performance as entrepreneurs. We argue that if these three needs are supported, as we can see by the entrepreneurs in our study, they are successful, if not, then, we argue, they may not succeed as a transnational entrepreneur. We take the assumption that the SIEEs in our study are active individuals interacting with the social and cultural world around them as they gain new experiences and develop their sense of self.

At the core of SDT is the belief that human nature displays positive features and that they make effort and can be self-determined in their lives. Ryan and Deci (2000) refer to this as ‘inherent growth strategies.’ It is assumed that the needs we have are cross-cultural (Ryan and Deci 2000). Autonomy is the need to feel and experience life and behavior as integrated within and endorsed by the self (Deci and Ryan 1985). Competence is the need to be effective in one’s interactions with their surrounding environment (Deci 1975). Belonging is the need to establish close and secure attachments with others (Baumeister and Leary 1995; Deci and Ryan 1991).

SDT suggests that if we satisfy autonomy, competence and belonging needs, we will be functioning at an optimum capacity and that importantly, these are cross-cultural and cross-developmental. However, criticism has been leveled at the theory, where opponents argue that the fundamental crux of SDT cannot be applied to Eastern contexts and cultures as essentially their cultures do not view autonomy in the same way that Western, more individual cultures do (Chao and Tseng 2002). Eastern cultures , due to their collectivist nature (as touched upon in Chap. 2) value conformity, harmony within the group and family interdependence over independence, individuality and autonomy. Yet as Ryan (1993) argues, autonomy is an endorsement that comes from within; it is the acceptance and recognition of one’s behavior that doesn’t need one to separate from others, but to recognize their inner needs. Thus, it is acceptable for an individual to be autonomous and interdependent within a group and to embrace collective values of the East (Ryan and Lynch 1989).

After extensive engagement with SDT and our narratives, we applied the SDT framework to our SIEEs (Fig. 4.8). We argue that our SIEEs need and have autonomy when they develop their business, their self-efficacy, that they have developed through their work, life and education experiences motivate them to become self-initiated expatriates. Similarly, they need a sense of belonging and thus, during each stage of their business development, they seek out groups and networks within which they can thrive. Additionally, they are aware of their competencies, what they can contribute to their business and society and are highly motivated to continue developing their competencies. The SIEEs are maintaining distinctiveness (autonomy). They are achieving optimal distinction yet engaging with multiple communities in their contexts (belonging) and are aware of their ability (competence). Combining these three needs gives the SIEEs a sense of meaning in their life and work, essentially we argue that Autonomy + Belonging + Competence = meaning as a self-initiated expatriate transnational entrepreneur.

Fig. 4.8

Source Author

Self-determination theory (Deci and Ryan 1995).

4.4 Summary of This Chapter

In this chapter we have provided the reader with our interpretation of the findings and suggest that Self-Determination Theory is a key component and useful framework through which we can observe the success of the Japanese SIEEs in South East Asia. The final chapter will provide some recommendations and suggestions for the development of these kinds of entrepreneurs.