Challenges created by ethnic networks: the liability of outsidership for host market actors

The paper explores network 'insidership' from the distinct viewpoint of host market actors seeking access to ethnic Chinese networks in an enclave economy in Prato, Italy. In order to have greater understanding around the nature of the social exchanges between host market firms and their ethnic-based network actors we build on social exchange theory and internationalisation theory, to explain the resource development and opportunity realisation process. Employing a qualitative research design we examine the exchanges within and across ethnic networks, explaining how actors overcome the liability of 'outsidership'.