A Tale of 'Sea Turtles:' Returnee Entrepreneurship, Institutions, and Firm Performance

52 Pages Posted: 9 Aug 2017

See all articles by Qing Liu

Qing Liu

Renmin University of China

Qin Han

University of Lethbridge

Runjuan Liu

University of Alberta, Alberta School of Business

Ruosi Lu

University of International Business and Economics (UIBE)

Date Written: February 9, 2017

Abstract

Returnee entrepreneurs have contributed to the economic development of their home countries. However, how do these returnee entrepreneurs differ from local entrepreneurs? How do their firms perform relative to local firms? What is the role of local institutions in the performance of returnees’ firms? Answers to these questions remain elusive. Using nationwide surveys of Chinese private firms, we investigate the relationships between returnee entrepreneurship, institutions, and firm performance. Particularly, we distinguish returnees with overseas degrees (RDs) and those with overseas training (RTs). We find that: (1) both firms led by RDs and RTs perform better than those led by local entrepreneurs; (2) RD- and RT-led firms share the competitive advantages of internationalization and R&D investment relative to local firms, and RD-led firms perform better in HR management and market research while RT-led firms have more access to bank loans; and (3) local institutions moderate the impact of returnee entrepreneurship on firm performance.

Keywords: Returnee entrepreneurship, Firm performance, Institutions

JEL Classification: O15, M21

Suggested Citation

Liu, Qing and Han, Qin and Liu, Runjuan and Lu, Ruosi, A Tale of 'Sea Turtles:' Returnee Entrepreneurship, Institutions, and Firm Performance (February 9, 2017). University of Alberta School of Business Research Paper No. 2017-702, Available at SSRN: https://ssrn.com/abstract=3015633 or http://dx.doi.org/10.2139/ssrn.3015633

Qing Liu

Renmin University of China ( email )

Qin Han

University of Lethbridge ( email )

4401 University Drive
Lethbridge, Alberta T1K 3M4
Canada

Runjuan Liu (Contact Author)

University of Alberta, Alberta School of Business ( email )

Edmonton, Alberta T6G 2R6
Canada
7804920334 (Phone)
7804923325 (Fax)

HOME PAGE: http://www.ualberta.ca/business/rliu

Ruosi Lu

University of International Business and Economics (UIBE) ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China

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