Learning, firm age and performance: An investigation of returnee entrepreneurs in Chinese high-tech industries

Abstract

This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent AbstractUsing unique survey data, this study investigates the impact of the learning and network capabilities of returnee entrepreneurs on firm performance. Our findings indicate that returnee entrepreneurs' experiential and vicarious learning as well as global networks boost firm performance. However, firm age significantly weakens the impact of experiential learning and reduces the effect of global networks on firm performance. Our results extend the existing literature by explicitly examining the inter-relationship between two forms of learning, global networks and firm age.

Internationalisation process of Chinese SMEs: the role of business and ethnic-group-based social networks

“…Such networks help SMEs gain information, knowledge and experience from overseas Chinese family members, other firms, and the government. It is also interesting to note that as more and more Chinese returnee entrepreneurs begin to engage with global markets (see e.g., Liu et al, 2015).The reliance of SMEs on such overseas Chinese networks might decrease as these returnees will have their own global networks and partnerships to leverage and support their business activities. It can probably be argued that as Chinese entrepreneurship models and business environment including the institutional environment evolves these business models for SMEs internationalization might converge to these observed in the western context.…”

Role and impact of the environment on entrepreneurial learning

“…They show that intrapreneurship training via an approach based on action learning and the use of a conceptual training model for entrepreneurship depends on awareness of the relationship between the individual, the group and the situation. Liu, Wright, and Filatotchev (2015) look at the impact of learning undertaken by repatriated entrepreneurs on company performance. They show that the experience of the returned entrepreneur and his or her vicarious learning boosts the company's performance, particularly in young companies.…”

“…There again, the effects generated by these interactions manifest in particular through the observation of construction processes in which the individual, the group and the organisation mutually influence one another and transform through the individual learning process (Byrne et al 2016;Downing 2005). This transformation can be observed from the angle of company performance (Liu, Wright, and Filatotchev 2015) or skills (Morris et al 2013). …”

The Role of Returnees in Business: A Review

“…Also focusing on SMEs in science parks, Filatotchev et al (2009) find that returnee entrepreneurs are associated with the higher export orientation and the better export performance. Liu et al, (2014) However, Li et al (2012) find that the new technology ventures managed by returnee entrepreneurs underperform those managed by native entrepreneurs. Lin et al (2014) use the survey data from the Zhongguancun Science Park and find that SMEs with returnee CEOs are not more innovative than those with native CEOs.…”

“…Recent studies show that returnees have gained significance in their home countries (Dai & Liu, 2009;Filatotchev et al, 2009;Lin, et al, 2014;Liu, et al, 2010b;Liu, Wright & Filatotchev et al, 2014;Pruthi, 2014;Wright et al, 2008). Such a trend of "brain gain" mitigates the concern of the phenomena of "brain drain" observed in early days when the talents from developing countries were attracted to developed countries (Bhagwati and Hamada, 1974).…”