Policymakers, academics and practitioners have recognised the potential of returnee entrepreneurs for the transfer of advanced knowledge to emerging and developing countries. Yet…
Abstract
Purpose
Policymakers, academics and practitioners have recognised the potential of returnee entrepreneurs for the transfer of advanced knowledge to emerging and developing countries. Yet what factors determine the decisions to start a business – and what type of business – upon returning to the home country is relatively unclear. This paper aims to reveal to what extent different contextual factors influence the intention to return home to start a venture. In addition to overall intentions to start a returnee business, this study covers intentions towards starting businesses with different orientations.
Design/methodology/approach
This study builds upon a sample of 273 individuals originating from emerging economies who are on track to complete their overseas tertiary education in an advanced economy. Using primary survey data obtained from the participants, a structural equation model (SEM) based on our theoretical model was defined for hypothesis testing.
Findings
Findings suggest that the perception of a stable institutional environment stimulates returnee entrepreneurship, and that the perception of estrangement negatively affects the intention to start a new venture in the home country. The results further show that the availability of support may reduce perceived estrangement, thereby exerting an indirect, positive effect on returnee entrepreneurship. Importantly, the findings confirm that these effects vary across intentions to start ventures with different orientations.
Originality/value
This study extends previous literature on the phenomenon of returnee entrepreneurs which has primarily investigated returnee-owned ventures that are already in operation. In particular, the authors provide theoretical links between institutions and other contextual factors affecting returnee entrepreneurial intentions, and this study highlights that it is meaningful to consider not only the strength but also different types of intentions. Thereby, this paper provides refined perspectives on the assumed beneficial impact of returnee entrepreneurs on the economic and societal development of emerging economies.
Details
Keywords
The purpose of this paper is to investigate the phenomenon of returnee entrepreneurs, their venturing efforts and the impact of the institutional environment they operate in, and…
Abstract
Purpose
The purpose of this paper is to investigate the phenomenon of returnee entrepreneurs, their venturing efforts and the impact of the institutional environment they operate in, and thereby to propose a conceptual model depicting how returnee entrepreneurs create and operate new ventures and interact with the institutional environment.
Design/methodology/approach
This study followed a multiple case study approach based on data collected from in-depth inquiries into 11 returnee entrepreneurs and their ventures in China which was analysed inductively.
Findings
Analysis of case study data resulted in a conceptual model of returnee entrepreneurs illustrating micro-level characteristics of the phenomenon and the interplay with the institutional environment of an emerging economy. Insights from the case study are discussed in terms of implications for entrepreneurial motivations, human and social capital, estrangement from the home country, internationalisation behaviour and objectives of returnee-owned ventures.
Originality/value
Previous research on the phenomenon of returnee entrepreneurs is highly fragmented and has largely focussed on specific and isolated outcomes. This study offers a holistic inquiry contributing to a better understanding of the phenomenon as a whole and presenting key properties of the phenomenon.