Returnee entrepreneurship: how home-country institutions, estrangement and support influence entrepreneurial intentions

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.

Merely Folklore? The Role of a Growth Mindset in the Taking and Timing of Entrepreneurial Actions

“…Returnees are those who worked and/or studied abroad and returned to their home country. Based on their overseas experiences, they may develop entrepreneurial intentions upon their return (Gruenhagen, 2021;Li & Ozdemir, 2020). Following Mullen (1995), we first prepared an English version of the surveys based on established scales of the relevant literatures.…”

Impact of social environment indicators on students´propensity to do business: Case study from central European countries

“…Entrepreneurs with their optimistic temperament and activity, are helping their countries to develop. Factors that determining young people's entry into entrepreneurship include: social indicator (Marques et al, 2018), microeconomic environment (Khan et al, 2019), access to funds (Zajtkowski & Domanska, 2019;Sobekova Majkova & Kljucnikov, 2017), quality of higher education (Nabi et al, 2018;Suroso et al;2020), personality traits (Etzal & Nagy), quality of the business environment (Belas et al, 2020), and so on.…”

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