Social ties and venture creation by returnee entrepreneurs

Pruthi, Sarika

doi:10.1016/j.ibusrev.2014.03.012

Cited by 80 publications

(78 citation statements)

References 65 publications

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“…I also contribute by offering a new mechanism for explaining returnee entrepreneurial entry whereas prior work had primarily looked to returnees' accumulation of skills and financial capital abroad as the primary factors (McCormick & Wahba, 2001; Wahba & Zenou, 2012). My findings show that cross‐border social ties intervene early in a prospective returnee's decision to start a venture, complementing other work that has examined the influence of cross‐border ties after a returnee establishes a venture (Li et al, 2012; Lin et al, 2016; Pruthi, 2014).…”

Section: Resultssupporting

confidence: 70%

“…After returnees come back to their home countries, many maintain cross‐border social ties through continued contact with individuals abroad. Whereas prior work has documented how cross‐border social ties facilitate the transfer of overseas ideas and resources to firms that employ or were founded by returnees, scholarship lacks insight into how returnees' cross‐border ties might also shape their decisions to start new ventures (Dutia, 2012; Lin, Zheng, Lu, Liu, & Wright, 2019; Pruthi, 2014; Qin & Estrin, 2015). Furthermore, although broader research on social networks and entrepreneurial entry finds that those with more diverse networks tend to become entrepreneurs (Aldrich & Kim, 2007; Aldrich & Zimmer, 1986; Hoang & Antoncic, 2003), it stops short of specifying whether social ties that span geographic borders serve as better channels for ideas and resources that promote entrepreneurial entry (Zhou, Wu, & Luo, 2007).…”

Section: Introductionmentioning

confidence: 99%

“…Dai and Liu (2009) show that the cross‐border ties of Chinese returnee entrepreneurs are the main sources of knowledge driving their firms' innovation activity. Studying Indian returnee entrepreneurs, Pruthi (2014) further illustrates how interaction with colleagues from abroad leads them to perceive market gaps in their home countries. Cross‐border ties to co‐workers therefore allow returnees tap into novel knowledge abroad that could be vital to venture formation.Hypothesis Returnees who maintain cross‐border ties are more likely to found ventures after returning to their home countries than those who do not maintain cross‐border ties .…”

Section: Introductionmentioning

confidence: 99%

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When do return migrants become entrepreneurs? The role of global social networks and institutional distance

Wang

2020

Strategic Entrepreneurship

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Research Summary: Does embeddedness in global social networks elevate or diminish individuals' propensity to found new ventures? I analyze entrepreneurial entry among a large, cross-country sample of skilled return migrants, all of whom had worked abroad in the United States before returning to 98 different home countries. My findings reveal that maintaining stronger cross-border social ties-that is, relationships to former colleagues abroad-leads returnees to be more likely to found new ventures in their homelands. However, the positive effects of cross-border social ties diminish with greater institutional distance between the returnee's home country and the United States. The findings have implications for research at the intersection of social networks, international migration, and entrepreneurship. Managerial Summary: When it comes to founding a venture, social networks are often critical in helping prospective entrepreneurs identify new market opportunities and resources. Which types of networks are most beneficial in helping people become entrepreneurs, however, still remains a question. This paper asks whether having social connections to individuals across countries makes one more likely to become an entrepreneur, and if so why? Studyingskilled return migrants, I find that returnees who maintain stronger social ties to those they met while working abroad are more likely to start companies, but only if there is sufficient similarity between the market environments of the

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Section: Resultssupporting

confidence: 70%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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When do return migrants become entrepreneurs? The role of global social networks and institutional distance

Wang

2020

Strategic Entrepreneurship

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“…Overseas study or work experience often makes returnees have a wealth of international business knowledge and business ideas that are easy to integrate into the international environment, and better understand the needs of the international market, so they are more inclined to invest abroad [1]. The background has formed an extensive overseas relationship network, which has provided enterprises with a variety of overseas information access channels, which helps companies to find investment opportunities, identify high-quality investment targets, and facilitate international cooperation [2].Guan has higher corporate governance capabilities and is better at managing overseas subsidiaries [3]. Fourthly, due to the existence of the "outsider disadvantage" effect, overseas returnees' directors with overseas backgrounds tend to study abroad and work experience abroad, and have weaker connections with the domestic.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Executives ‘Overseas Background on Chinese Enterprises’ Outward Direct Investment: Based on Data From Listed Manufacturing Companies

Wang¹

2020

Proceedings of the International Academic Conference on Frontiers in Social Sciences and Management Innovation (IAFSM 2019)

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The development of OFDI is of great significance to China's manufacturing industry structure and manufacturing enterprises themselves. How to carry out higher-quality foreign direct investment has become a question worthy of attention. This article takes the listed companies of Shanghai and Shenzhen A-share manufacturing companies in China from 2009 to 2018 as research objects, studies the impact of overseas background of corporate executives on foreign direct investment of enterprises, analyzes the direct and indirect channels of the impact, and further examine the differences in different types of overseas backgrounds. The study found that companies with overseas background are more likely to make direct foreign investment. Executives with overseas work experience are more likely to promote companies' direct foreign investment than those executives who have overseas learning background. Literature References and Research Hypothesis Influence of executives' overseas background on OFDIIn terms of foreign direct investment, compared with executives with no overseas background, the

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“…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).…”

Section: Introductionmentioning

confidence: 99%

The Role of Returnees in Business: A Review

et al. 2015

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In recent years, a growing number of overseas Chinese students and immigrants return to China to take advantage of the development opportunities by engaging business. Their roles in business receive increasing attention from policy makers, the media and scholars. This chapter intends to provide a review of the relevant literature. We note that returnees have started playing an important role in the society since 1840s. Returnees contribute to the modern business through facilitating knowledge transfer, increasing innovation, boosting productivity and ensuring economic growth. The evidence from other countries and the disadvantages of returnees are also discussed.

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Social ties and venture creation by returnee entrepreneurs

Cited by 80 publications

References 65 publications

When do return migrants become entrepreneurs? The role of global social networks and institutional distance

When do return migrants become entrepreneurs? The role of global social networks and institutional distance

The Impact of Executives ‘Overseas Background on Chinese Enterprises’ Outward Direct Investment: Based on Data From Listed Manufacturing Companies

The Role of Returnees in Business: A Review

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