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Returnee entrepreneurs and firm performance in Chinese high-technology industries

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  • Dai, Ou
  • Liu, Xiaohui

Abstract

Building on the knowledge-based view and network perspectives, this paper explores the relationships between knowledge, networks and firm performance. Using a unique, hand-collected dataset of 353 small and medium enterprises (SMEs) of returning entrepreneurs and 358 local entrepreneur-owned SMEs from Zhongguancun Science Park in China, we find that the SMEs of returning entrepreneurs perform better than those owned by local entrepreneurs due to their technological and commercial knowledge as well as their international entrepreneurial orientation. Our results show that international networks positively affect firm performance in high-tech industries. Our findings indicate that returnee entrepreneurs gain competitive advantages through utilising their intangible assets to exploit business opportunities and development in an emerging economy.

Suggested Citation

  • Dai, Ou & Liu, Xiaohui, 2009. "Returnee entrepreneurs and firm performance in Chinese high-technology industries," International Business Review, Elsevier, vol. 18(4), pages 373-386, August.
  • Handle: RePEc:eee:iburev:v:18:y:2009:i:4:p:373-386
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    2. Rauch, Andreas & Rosenbusch, Nina & Unger, Jens & Frese, Michael, 2016. "The effectiveness of cohesive and diversified networks: A meta-analysis," Journal of Business Research, Elsevier, vol. 69(2), pages 554-568.
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    5. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    6. Naudé, Wim & Siegel, Melissa & Marchand, Katrin, 2015. "Migration, Entrepreneurship and Development: A Critical Review," IZA Discussion Papers 9284, Institute for the Study of Labor (IZA).
    7. Raluca Mariana Grosu & Elena Ecaterina Nicolae, 2015. "Best practices in the field of returnee entrepreneurship," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(39), pages 799-799, May.
    8. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, vol. 19(1), pages 85-101, February.
    9. Mary Beth Rousseau & Blake D. Mathias & Laura T. Madden & T. Russell Crook, 2016. "Innovation, Firm Performance, And Appropriation: A Meta-Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-29, April.
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    11. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    12. Riddle, Liesl & Brinkerhoff, Jennifer, 2011. "Diaspora entrepreneurs as institutional change agents: The case of Thamel.com," International Business Review, Elsevier, pages 670-680.
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    17. Lei, Han-Sheng & Chen, Yung-Shuan, 2011. "The right tree for the right bird: Location choice decision of Taiwanese firms' FDI in China and Vietnam," International Business Review, Elsevier, vol. 20(3), pages 338-352, June.
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    20. Lee, Ji-Hwan & Roberts, Michael J.D., 2015. "International returnees as outside directors: A catalyst for strategic adaptation under institutional pressure," International Business Review, Elsevier, pages 594-604.
    21. Kenney, Martin & Breznitz, Dan & Murphree, Michael, 2013. "Coming back home after the sun rises: Returnee entrepreneurs and growth of high tech industries," Research Policy, Elsevier, pages 391-407.
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    23. Zhi Tang & Jintong Tang, 2016. "The Impact of Competitors–Firm Power Divergence on Chinese SMES’ Environmental and Financial Performance," Journal of Business Ethics, Springer, pages 147-165.
    24. Kinsuk Mani Sinha & Pamela Adams & Franco Malerba, 2015. "Intermediate Users as a Source of Innovation in a Development Context: Empirical Evidence and Theory," Globelics Working Paper Series 2015-14, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.

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