Abstract
Returnee entrepreneurs (REs), who left China for education or work experience, accumulate human capital (HC) from their host countries. Such HC may be of benefit when forming new firms on their return to their home country. Insight from an in-depth case study of a service company for legal professionals, formed by three REs in Shanghai, is observed. Data were collected through participant observation and in-depth interviews. Findings indicate a contingency effect of HC. REs’ specific human capital (SHC), leveraged from their ‘host country experiences’, increased their alertness to business opportunities (i.e., opportunity identification). Their general human capital (GHC), leveraged from their ‘home and host country experiences’, prompted the new firm formation (i.e., opportunity exploitation).
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