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Under what institutional conditions does overseas business knowledge contribute to firm performance? |
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| Authors: | Xiaohui Liu Tianjiao Xia Daomi Lin |
| Institution: | 1. School of International Business, Southwestern University of Finance and Economics, Chengdu, China;2. Birmingham Business School, University of Birmingham, Birmingham, B15 2TY, UK;3. Management School, University of Liverpool, UK;4. Guanghua School of Management, Peking University, No. 5 Yiheyuan Road, Beijing, 100871, China;5. Lingnan (University) College, Sun Yat-sen University, Guangzhou, China |
| Abstract: | We examine the extent to which the impact of the overseas business knowledge transferred by returnee entrepreneurs on firm performance is conditional on institutional factors. The findings show that informal institutional differences between the home and host countries strengthen the positive impact of overseas business knowledge on the performance of returnee-founded firms. There is a complementarity between informal institutional differences and local government policy support which jointly enhance the positive impact of overseas business knowledge. However, a well-developed local business infrastructure substitutes for the impact of informal institutional differences on the relationship between overseas business knowledge and returnee venture performance. |
| Keywords: | Overseas business knowledge Informal institutional differences Policy support Local business infrastructure Returnee entrepreneurs Firm performance |
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