This 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.
Survey 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.
Compared 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.
This 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.
