Intra-Ethnic Business Networks: The Case of the Gurage Footwear Industry in Ethiopia

Drawing on insights from social network theory, the socio-economic and cultural dimensions of intraethnic business networks are examined for the Gurage, an ethnic group in Ethiopia. This study also examines the extent of Chinese impacts on the footwear industry of Ethiopia. A qualitative approach based on in-depth interviews was utilized in order to assess intra-ethnic business networks, while a quantitative approach, based on a cross-sectional survey, was employed to collect background data, to assess the impact of Chinese imports on local footwear producers and to identify potential cases for in-depth interviews. Gurage use ethnic networks to mobilize resources and opportunities, which in turn contributes to their success in the business. In response to the threats of Chinese imports on production activities and social capital of local footwear enterprises, firms downsized or stopped business, or resorted to other alternatives.

ISBN:9781466695672

Publication year:2016