Misfit or xenophillia: The impact of overseas work experiences on returnee entrepreneurs’ venture capital funding in China

Purpose: Overseas work experiences have played a critical role in venture creation and success, yet the impact of overseas work experience on returnee entrepreneurs’ venture capital funding in the Chinese market remains understudied. This paper aims to explore the impact of returnee entrepreneurs’ overseas experiences on their opportunities of venture capital funding in China to help better understand the potential benefits that overseas work experiences bring to emerging markets. Design/methodology/approach: The authors have conducted a two-year inductive field study to explore the impact of overseas experiences on Chinese returnee entrepreneurs’ funding in the Chinese market with in-depth interviews with returnee capital seekers (or the venture founders) and capital providers. Findings: The results show that returnee entrepreneurs are more likely to succeed in acquiring financial resources for their new ventures if they skillfully present their overseas work experiences and international networks to manage the impression constructed by capital providers. Originality/value: This research sheds light on how returnee entrepreneurs use impression management in external resource acquisition. It is clear that overseas experience has been regarded a symbol of personal capability closely associated with advanced knowledge and valuable human and social capital in the Chinese context. Resource holders appreciate such an association. The authors suggest that returnee entrepreneurs concerned about how to effectively acquire external resources should reflect upon the ways of presenting themselves to potential investors and fostering a positive image that encourages investors to commit to their ventures.