Returnee Entrepreneurs:Bridging Network Gaps in China after Absence

Improved market opportunities in China and government led policies entice talent away from their host countries to return to their home country. We study Returnee Entrepreneurs (REs) in the high-tech sector and use network theory to probe their social ties enabling new firm formation. Data collection rested on a comparative case study using in-depth interviews with 10 REs. Analysis indicates that direct entrant REs (i.e., those who formed a firm immediately upon return) relied on their strong ties with family and friends, whilst abroad, to substitute weak ties with the government to access resources for new firm formation prior to their return. Indirect REs (i.e., those who sought employment prior to forming a new firm) validated their idea through strong education ties whilst abroad but did not exploit strong family ties at home because they provided little leverage to resource providers.