A disadvantage to an advantage? Immigrant entrepreneurs’ use of effectuation in business start-up and development in the Kingdom of Saudi Arabia

Abstract

This chapter explores how immigrants start and develop businesses in the context of Kingdom of Saudi Arabia. Using cumulative advantage/disadvantage theory in conjunction with effectuation, the chapter outlines immigrants’ initial resources/means position and how it can be an advantage or a disadvantage for entrepreneurship. The chapter findings illustrate that immigrants use effectuation to either mitigate an initial disadvantaged position or build on an initial advantaged position at the business start-up. The effects are different between first- and second-generation immigrants. Using these findings, the chapter proposes a conceptual framework combining both cumulative advantage/disadvantage theory and effectuation and outlines theoretical, empirical and policy implications.