Chinese entrepreneurs and workers at the crossroad: the role of social networks in ethnic industrial clusters in Italy

Purpose: This paper aims to analyse the evolution of Chinese industrial ethnic clusters in Italy, by focusing on the role of social networks and the processes behind the phenomenon of Chinese worker exploitation and entrepreneur “self-exploitation”. Design/methodology/approach: The case study is a sub-cluster of micro and small enterprises owned by Chinese entrepreneurs within the leather industrial district of Florence, Italy. This research adopts the following mixed methods: a small-scale survey to capture the characteristics of the sub-cluster and a social network analysis to describe cluster evolution, complemented by life-course interviews conducted with key informants and entrepreneurs. Findings: Migrant social capital and social networks play a central role in the evolution of the case study sub-cluster. Social networks play a supportive role in migration, job creation, entrepreneurship formation and the creation of business opportunities. Simultaneously, they enhance the phenomenon of worker exploitation and entrepreneur self-exploitation. Furthermore, the more the business community grows, the more the economic performance of ethnic enterprises depends on agglomeration forces produced by the cluster. Practical implications: The findings suggest a series of potential policies to upgrade the ethnic enterprises' capacities, to increase their formality and inclusion in the Italian social and economic systems and sub-cluster. Originality/value: To the authors’ knowledge, this paper is the first attempt to examine the evolution of social networks in relation to the phenomenon of Chinese worker exploitation and entrepreneur self-exploitation in an ethnic industrial sub-cluster.