Does a second-generation returnee make the family firm more entrepreneurial?

Abstract

PurposeThis paper aims to focus on a special group of people in family firms in China, the second generation who are returnees, and to study their impact on family ownership and corporate entrepreneurship.Design/methodology/approachSurvey data from China’s private enterprises in 2015 were used to test the hypotheses. Data were collected through a joint effort by the China Federation of Industry and Commerce and the School of Management of Zhejiang University. The authors used a stratified sampling method, and questionnaires were distributed to 12 provinces in East, Central and West China. Two sets of questionnaires were distributed and answered.FindingsCompared with those family firms without second-generation returnees, the relationship between family ownership and corporate entrepreneurship is significantly enhanced in family firms that have second-generation returnees. Furthermore, compared with the second-generation returnees who stay overseas for a short time, returnees who stay overseas longer are more likely to promote corporate entrepreneurship.Originality/valueThis study explores the unique characteristics of second-generation returnees and explores these returnees’ impact on family ownership and corporate entrepreneurship in the Chinese context. This could generate a new value to the family entrepreneurship literature.