When Do Second-Generation Returnees Affect Family Firms’ Entrepreneurial Risk-Taking? The Moderating Role of Managerial Discretion

References

• Adomako, S., J. Amankwah-Amoah, G. O. Dankwah, A. Danso, and F. Donbesuur. 2019. Institutional voids, international learning effort and internationalization of emerging market new ventures. Journal of International Management 25 (4):100666. doi:10.1016/j.intman.2019.04.001.
   Web of Science ®Google Scholar
• Amit, R., Y. Ding, B. Villalonga, and H. Zhang. 2015. The role of institutional development in the prevalence and performance of entrepreneur and family-controlled firms. Journal of Corporate Finance 31:284–305. doi:10.1016/j.jcorpfin.2015.01.001.
   Web of Science ®Google Scholar
• Anderson, B. S., and Y. Eshima. 2013. The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs. Journal of Business Venturing 28 (3):413–29. doi:10.1016/j.jbusvent.2011.10.001.
   Web of Science ®Google Scholar
• Au, K., F. F. T. Chiang, T. A. Birtch, and Z. Ding. 2013. Incubating the next generation to venture: The case of a family business in Hong Kong. Asia Pacific Journal of Management 30 (3):749–67. doi:10.1007/s10490-012-9331-7.
   Web of Science ®Google Scholar
• Bai, W., C. Holmström Lind, and M. Johanson. 2016. The performance of international returnee ventures: The role of networking capability and the usefulness of international business knowledge. Entrepreneurship & Regional Development 28 (9–10):657–80. doi:10.1080/08985626.2016.1234003.
   Web of Science ®Google Scholar
• Bai, W., P. Kao, and J. Wu. 2021. Returnee entrepreneurs and the performance implications of political and business relationships under institutional uncertainty. Journal of Business Research 128:245–56. doi:10.1016/j.jbusres.2021.02.014.
   Web of Science ®Google Scholar
• Berrone, P., C. Cruz, and L. R. Gomez-Mejia. 2012. Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review 25 (3):258–79. doi:10.1177/0894486511435355.
   Web of Science ®Google Scholar
• Bruton, G. D., S. A. Zahra, A. H. Van de Ven, and M. A. Hitt. 2022. Indigenous theory uses, abuses, and future. Journal of Management Studies 59 (4):1057–73. doi:10.1111/joms.12755.
   Web of Science ®Google Scholar
• Cao, J., D. Cumming, and X. Wang. 2015. One-child policy and family firms in China. Journal of Corporate Finance 33:317–29. doi:10.1016/j.jcorpfin.2015.01.005.
   Web of Science ®Google Scholar
• Capelleras, J. L., and F. J. Greene. 2008. The determinants and growth implications of venture creation speed. Entrepreneurship and Regional Development 20 (4):317–43. doi:10.1080/08985620701855683.
   Web of Science ®Google Scholar
• Chea, J. 2021. Family business risk-taking and financial performance: Is it easier said than done? Journal of Family Business Strategy 12 (4):100435. doi:10.1016/j.jfbs.2021.100435.
   Web of Science ®Google Scholar
• Chen, S., B. Wu, Z. Liao, and L. Chen. 2022. Does familial decision control affect the entrepreneurial orientation of family firms? The moderating role of family relationships. Journal of Business Research 152:60–69. doi:10.1016/j.jbusres.2022.07.014.
   Web of Science ®Google Scholar
• Chrisman, J. J., J. H. Chua, A. W. Pearson, and T. Barnett. 2012. Family involvement, family influence, and family–centered non–economic goals in small firms. Entrepreneurship Theory and Practice 36 (2):267–93. doi:10.1111/j.1540-6520.2010.00407.x.
   Web of Science ®Google Scholar
• Chung, C. N., and X. Luo. 2008. Institutional logics or agency costs: The influence of corporate governance models on business group restructuring in emerging economies. Organization Science 19 (5):766–84. doi:10.1287/orsc.1070.0342.
   Web of Science ®Google Scholar
• Chung, C. N., and X. R. Luo. 2013. Leadership succession and firm performance in an emerging economy: Successor origin, relational embeddedness, and legitimacy. Strategic Management Journal 34 (3):338–57. doi:10.1002/smj.2011.
   Web of Science ®Google Scholar
• Cirillo, A., L. Pennacchio, M. R. Carillo, and M. Romano. 2021. The antecedents of entrepreneurial risk-taking in private family firms: CEO seasons and contingency factors. Small Business Economics 56 (4):1571–90. doi:10.1007/s11187-019-00279-x.
   Web of Science ®Google Scholar
• Colombo, M. G., A. De Massis, E. Piva, C. Rossi-Lamastra, and M. Wright. 2014. Sales and employment changes in entrepreneurial ventures with family ownership: Empirical evidence from high-tech industries. Journal of Small Business Management 52 (2):226–45. doi:10.1111/jsbm.12100.
   Web of Science ®Google Scholar
• Corwin, E. S., H. Loncarich, and J. W. Ridge. 2022. What’s it like inside the hive? Managerial discretion drives the gender diversity of women-led firms. Journal of Management 48 (4):1003–34. doi:10.1177/01492063211011755.
   Web of Science ®Google Scholar
• Crossland, C., and D. C. Hambrick. 2011. Differences in managerial discretion across countries: How Nation-Level institutions affect the degree to which CEOs matter. Strategic Management Journal 32 (8):797–819. doi:10.1002/smj.913.
   Web of Science ®Google Scholar
• Cui, L., Y. Li, K. E. Meyer, and Z. Li. 2015. Leadership experience meets ownership structure: Returnee managers and internationalization of emerging economy firms. Management International Review 55 (3):355–87. doi:10.1007/s11575-014-0221-8.
   Web of Science ®Google Scholar
• Dai, W., and S. Si. 2018. Government policies and firms’ entrepreneurial orientation: Strategic choice and institutional perspectives. Journal of Business Research 93:23–36. doi:10.1016/j.jbusres.2018.08.026.
   Web of Science ®Google Scholar
• Daspit, J. J., J. J. Chrisman, T. Ashton, and N. Evangelopoulos. 2021. Family firm heterogeneity: A definition, common themes, scholarly progress, and directions forward. Family Business Review 34 (3):296–322. doi:10.1177/08944865211008350.
   Web of Science ®Google Scholar
• De Massis, A., J. Kotlar, J. H. Chua, and J. J. Chrisman. 2014. Ability and willingness as sufficiency conditions for family-oriented particularistic behavior: Implications for theory and empirical studies. Journal of Small Business Management 52 (2):344–64. doi:10.1111/jsbm.12102.
   Web of Science ®Google Scholar
• Dencker, J. C., and M. Gruber. 2015. The effects of opportunities and founder experience on new firm performance. Strategic Management Journal 36 (7):1035–52. doi:10.1002/smj.2269.
   Web of Science ®Google Scholar
• Dou, J., E. Su, and S. Wang. 2019. When does family ownership promote proactive environmental strategy? The role of the firm’s long-term orientation. Journal of Business Ethics 158 (1):81–95. doi:10.1007/s10551-017-3642-z.
   Web of Science ®Google Scholar
• Fan, G., X. Wang, and H. Zhu. 2009. NERI index of marketization of china’s provinces. Beijing, China: Economics Science Press.
   Google Scholar
• Finkelstein, S., and D. C. Hambrick. 1990. Top-management-team tenure and organizational outcomes: The moderating role of managerial discretion. Administrative Science Quarterly 35 (3):484–503. doi:10.2307/2393314.
   Web of Science ®Google Scholar
• Fletcher, D. 2010. ‘Life-making or risk taking’? Co-preneurship and family business start-ups. International Small Business Journal 28 (5):452–69. doi:10.1177/0266242610370391.
   Web of Science ®Google Scholar
• Fu, Y., and S. Si. 2018. Does a second-generation returnee make the family firm more entrepreneurial? The China experience. Chinese Management Studies 12 (2):287–304. doi:10.1108/CMS-08-2017-0241.
   Web of Science ®Google Scholar
• Gómez-Mejia, L. R., I. Neacsu, and G. Martin. 2019. CEO risk-taking and socioemotional wealth: The behavioral agency model, family control, and CEO option wealth. Journal of Management 45 (4):1713–38. doi:10.1177/0149206317723711.
   Web of Science ®Google Scholar
• Hales, C. 2005. Rooted in supervision, branching into management: Continuity and change in the role of first-line manager. Journal of Management Studies 42 (3):471–506. doi:10.1111/j.1467-6486.2005.00506.x.
   Web of Science ®Google Scholar
• Hambrick, D. C. 2007. Upper echelons theory: An update. Academy of Management Review 32 (2):334–43. doi:10.5465/amr.2007.24345254.
   Web of Science ®Google Scholar
• Hambrick, D. C., and E. Abrahamson. 1995. Assessing managerial discretion across industries: A multimethod approach. Academy of Management Journal 38 (5):1427–41. doi:10.2307/256864.
   Web of Science ®Google Scholar
• Hambrick, D. C., and S. Finkelstein. 1987. Managerial discretion: A bridge between polar views of organizational outcomes. Research in Organizational Behavior 9 (4):369–406.
   Google Scholar
• Hibbler-Britt, L. M., and A. C. Wheatley. 2018. Succession planning in family-owned businesses. In Succession planning: Promoting organizational sustainability, ed. P. A. Gordon and J. A. Overbey, 75–87. Cham: Springer International Publishing.
   Google Scholar
• Hitt, M. A., H. Li, and W. J. Worthington. 2005. Emerging markets as learning laboratories: Learning behaviors of local firms and foreign entrants in different institutional contexts. Management and Organization Review 1 (3):353–80. doi:10.1111/j.1740-8784.2005.0019a.x.
   Google Scholar
• Hoxha, D., and J. L. Capelleras. 2010. Fast-growing firms in a transitional and extreme environment: Are they different? Journal of Small Business and Enterprise Development 17 (3):350–70. doi:10.1108/14626001011068671.
   Google Scholar
• Hutzschenreuter, T., and I. Kleindienst. 2013. (How) does discretion change over time? A contribution toward a dynamic view of managerial discretion. Scandinavian Journal of Management 29 (3):264–81. doi:10.1016/j.scaman.2012.11.009.
   Web of Science ®Google Scholar
• Huybrechts, J., W. Voordeckers, and N. Lybaert. 2013. Entrepreneurial risk-taking of private family firms: The influence of a nonfamily CEO and the moderating effect of CEO tenure. Family Business Review 26 (2):161–79. doi:10.1177/0894486512469252.
   Web of Science ®Google Scholar
• Jakobsen, M., and R. Jensen. 2015. Common method bias in public management studies. International Public Management Journal 18 (1):3–30. doi:10.1080/10967494.2014.997906.
   Web of Science ®Google Scholar
• Judge, W. Q., Y. Liu-Thompkins, J. L. Brown, and C. Pongpatipat. 2015. The impact of home country institutions on corporate technological entrepreneurship via R&D investments and virtual world presence. Entrepreneurship Theory and Practice 39 (2):237–66. doi:10.1111/etap.12036.
   Web of Science ®Google Scholar
• Kallmuenzer, A., and M. Peters. 2018. Entrepreneurial behaviour, firm size and financial performance: The case of rural tourism family firms. Tourism Recreation Research 43 (1):2–14. doi:10.1080/02508281.2017.1357782.
   Web of Science ®Google Scholar
• Kempers, M., M. P. Leitterstorf, and N. Kammerlander. 2019. Risk behavior of family firms: A literature review, framework, and research agenda. In The Palgrave handbook of heterogeneity among family firms, 431–60.
   Google Scholar
• Kenney, M., B. Dan, and M. Murphree. 2013. Coming back home after the sun rises: Returnee entrepreneurs and growth of high tech industries. Research Policy 42 (2):391–407. doi:10.1016/j.respol.2012.08.001.
   Web of Science ®Google Scholar
• Kong, D., Y. Zhao, and S. Liu. 2021. Trust and innovation: Evidence from CEOs’ early-life experience. Journal of Corporate Finance 69:101984. doi:10.1016/j.jcorpfin.2021.101984.
   Web of Science ®Google Scholar
• Koropp, C., D. Grichnik, and F. Kellermanns. 2013. Financial attitudes in family firms: The moderating role of family commitment. Journal of Small Business Management 51 (1):114–37. doi:10.1111/j.1540-627X.2012.00380.x.
   Web of Science ®Google Scholar
• Li, H., Y. Zhang, Y. Li, L. A. Zhou, and W. Zhang. 2012. Returnees versus locals: Who perform better in China’s technology entrepreneurship? Strategic Entrepreneurship Journal 6 (3):257–72. doi:10.1002/sej.1139.
   Web of Science ®Google Scholar
• Li, J., and Y. I. Tang. 2010. CEO hubris and firm risk-taking in China: The moderating role of managerial discretion. Academy of Management Journal 53 (1):45–68. doi:10.5465/amj.2010.48036912.
   Web of Science ®Google Scholar
• Lim, E. N. K., M. H. Lubatkin, and R. M. Wiseman. 2010. A family firm variant of the behavioral agency theory. Strategic Entrepreneurship Journal 4 (3):197–211. doi:10.1002/sej.91.
   Web of Science ®Google Scholar
• Lin, D., J. Lu, X. Liu, and S. J. Choi. 2014. Returnee CEO and innovation in Chinese high-tech SMEs. International Journal of Technology Management 65 (1–4):151–71. doi:10.1504/IJTM.2014.060947.
   Web of Science ®Google Scholar
• Lin, D., J. Lu, X. Liu, and X. Zhang. 2016. International knowledge brokerage and returnees’ entrepreneurial decisions. Journal of International Business Studies 47 (3):295–318. doi:10.1057/jibs.2016.1.
   Web of Science ®Google Scholar
• Lin, Y. H., C. J. Chen, and B. W. Lin. 2018. The dual-edged role of returnee board members in new venture performance. Journal of Business Research 90:347–58. doi:10.1016/j.jbusres.2018.05.021.
   Web of Science ®Google Scholar
• Liu, X., M. Wright, and I. Filatotchev. 2015. Learning, firm age and performance: An investigation of returnee entrepreneurs in Chinese high-tech industries. International Small Business Journal 33 (5):467–87. doi:10.1177/0266242613508147.
   Web of Science ®Google Scholar
• Liu, Y., W. Dai, M. Liao, and J. Wei. 2021. Social status and corporate social responsibility: Evidence from Chinese privately owned firms. Journal of Business Ethics 169 (4):651–72. doi:10.1007/s10551-020-04547-9.
   Web of Science ®Google Scholar
• Mariotti, S., R. Marzano, and L. Piscitello. 2021. The role of family firms’ generational heterogeneity in the entry mode choice in foreign markets. Journal of Business Research 132:800–12. doi:10.1016/j.jbusres.2020.10.064.
   Web of Science ®Google Scholar
• Michael-Tsabari, N., R. Labaki, and R. K. Zachary. 2014. Toward the cluster model: The family firm’s entrepreneurial behavior over generations. Family Business Review 27 (2):161–85. doi:10.1177/0894486514525803.
   Web of Science ®Google Scholar
• Miller, J. S., R. M. Wiseman, and L. R. Gómez-Mejia. 2002. The fit between CEO compensation design and firm risk. Academy of Management Journal 45 (4):745–56. doi:10.2307/3069308.
   Web of Science ®Google Scholar
• Neely, B. H., Jr, J. B. Lovelace, A. P. Cowen, and N. J. Hiller. 2020. Metacritiques of upper echelons theory: Verdicts and recommendations for future research. Journal of Management 46 (6):1029–62. doi:10.1177/0149206320908640.
   Web of Science ®Google Scholar
• Ren, G., P. Zeng, and X. Zhong. 2023. Impact of returnee executives and managerial discretion on excess perquisite consumption. Business Ethics, the Environment & Responsibility 32 (2):498–516. doi:10.1111/beer.12486.
   Google Scholar
• Sciascia, S., P. Mazzola, and F. W. Kellermanns. 2014. Family management and profitability in private family-owned firms: Introducing generational stage and the socioemotional wealth perspective. Journal of Family Business Strategy 5 (2):131–37. doi:10.1016/j.jfbs.2014.03.001.
   Web of Science ®Google Scholar
• Sha, Y., and S. S. Sharma. 2020. Research on pandemics special issue of the journal emerging markets finance and trade. Emerging Markets Finance and Trade 56 (10):2133–37. doi:10.1080/1540496X.2020.1795467.
   Web of Science ®Google Scholar
• Sharma, P., J. J. Chrisman, A. L. Pablo, and J. H. Chua. 2001. Determinants of initial satisfaction with the succession process in family firms: A conceptual model. Entrepreneurship Theory and Practice 25 (3):17–36. doi:10.1177/104225870102500302.
   Google Scholar
• Shen, W., and T. S. Cho. 2005. Exploring involuntary executive turnover through a managerial discretion framework. Academy of Management Review 30 (4):843–54. doi:10.5465/amr.2005.18378881.
   Web of Science ®Google Scholar
• Shi, W., S. L. Sun, and M. W. Peng. 2012. Sub-national institutional contingencies, network positions, and IJV partner selection. Journal of Management Studies 49 (7):1221–45. doi:10.1111/j.1467-6486.2012.01058.x.
   Web of Science ®Google Scholar
• Sydow, A., B. L. Cannatelli, A. Giudici, and M. Molteni. 2022. Entrepreneurial workaround practices in severe institutional voids: Evidence from Kenya. Entrepreneurship Theory and Practice 46 (2):331–67. doi:10.1177/1042258720929891.
   Web of Science ®Google Scholar
• Wang, D. J. 2020. When do return migrants become entrepreneurs? The role of global social networks and institutional distance. Strategic Entrepreneurship Journal 14 (2):125–48. doi:10.1002/sej.1352.
   Web of Science ®Google Scholar
• Wang, G., K. DeGhetto, B. P. Ellen, and B. T. Lamont. 2019. Board antecedents of CEO duality and the moderating role of country-level managerial discretion: A meta-analytic investigation. Journal of Management Studies 56 (1):172–202. doi:10.1111/joms.12408.
   Web of Science ®Google Scholar
• Wang, X., G. Fan, and L. Hu. 2018. Marketization index of China's provinces: NERI Report 2018. Beijing, China: Social Science Academic Press.
   Google Scholar
• Wang, Y., and P. Poutziouris. 2010. Entrepreneurial risk taking: empirical evidence from UK family firms. International Journal of Entrepreneurial Behaviour & Research 16 (5):370–88. doi:10.1108/13552551011071841.
   Google Scholar
• Wangrow, D. B., D. J. Schepker, and V. L. Barker. 2015. Managerial discretion: An empirical review and focus on future research directions. Journal of Management 41 (1):99–135. doi:10.1177/0149206314554214.
   Web of Science ®Google Scholar
• Yamak, S., S. Nielsen, and A. Escribá-Esteve. 2014. The role of external environment in upper echelons theory: A review of existing literature and future research directions. Group & Organization Management 39 (1):69–109. doi:10.1177/1059601113511663.
   Web of Science ®Google Scholar
• Yan, J., and R. Sorenson. 2006. The effect of Confucian values on succession in family business. Family Business Review 19 (3):235–50. doi:10.1111/j.1741-6248.2006.00072.x.
   Web of Science ®Google Scholar
• Zahra, S. A. 2005. Entrepreneurial risk taking in family firms. Family Business Review 18 (1):23–40. doi:10.1111/j.1741-6248.2005.00028.x.
   Web of Science ®Google Scholar
• Zahra, S. A. 2018. Entrepreneurial risk taking in family firms: The wellspring of the regenerative capability. Family Business Review 31 (2):216–26. doi:10.1177/0894486518776871.
   Web of Science ®Google Scholar
• Zahra, S. A., M. Wright, and S. G. Abdelgawad. 2014. Contextualization and the advancement of entrepreneurship research. International Small Business Journal 32 (5):479–500. doi:10.1177/0266242613519807.
   Web of Science ®Google Scholar
• Zhao, J., M. Carney, S. Zhang, and L. Zhu. 2020. How does an intra-family succession effect strategic change and performance in China’s family firms? Asia Pacific Journal of Management 37 (2):363–89. doi:10.1007/s10490-018-9568-x.
   Web of Science ®Google Scholar
• Zhou, K. Z., and F. Wu. 2010. Technological capability, strategic flexibility, and product innovation. Strategic Management Journal 31 (5):547–61.
   Web of Science ®Google Scholar
• Zhou, Y., and J. C. Hall. 2019. The impact of marketization on entrepreneurship in China: Recent evidence. American Journal of Entrepreneurship 12 (1):31–55.
   Google Scholar
• Zhu, Z., and Y. Kang. 2022. A far-reaching parental love? Co-governance of intergenerational succession and innovation activities in Chinese family firms. Management and Organization Review 18 (2):358–39. doi:10.1017/mor.2021.45.
   Web of Science ®Google Scholar