1. Studying Technology Entrepreneurship in China
Yan Anthea Zhang
China Europe International Business School
and
Rice University
Presented at the Academy of Management Annual Meeting
Boston, August 2012

2. Potential Research Topics at Different Stages of
Entrepreneurship
Entrepreneurial
strategy:
• Innovation search
• Alliances
• Product innovation
Clusters as
Exit
Incubators
Entrepreneurial
capability:
• Political networking
• Functional
experience
• Overseas experience

3. Clusters as Incubators
Zhang, Li, and Schoonhoven. 2009. Inter-Community
Relationships and Community growth in China’s High-
Technology Industries 1988-2000. Strategic Management
Journal, 30(7): 163-183.

4. Locations of 54 National Technology
Development Clusters in China

5. Nuclear Application
Integrated
Figure 3. Industry Dispersion across China's Technology Development
Optical/Advanced
Manufacturting
High Tech Agriculture
Ocean Technology Types of Industry
Environmental
Protection
Zones
New Energy
Aeronautical
Engineering
New Materials
Biotech/Pharmaceutical
Electronic Information
60
50
40
30
20
10
0
Number of Zones

6. Total Sales Revenue for All Zones 1988-2000
(In 1990 RMB)
500
450
Total Sales Revenue in RMB
400
350
300
Billions
250
200
150
100
50
0
Year

7. Entrepreneurial Strategy
Zhang and Li, 2010. Innovation search of new ventures in a
technology cluster: The role of ties with service
intermediaries. Strategic Management Journal. 31(1): 88-
109.
• Service intermediaries
• Innovation search

8. Entrepreneurial Capability:
Li and Zhang, 2007. The Role of Managers’ Political Networking
and Functional Experience in New Venture Performance: Evidence
from China’s Transition Economy, Strategic Management Journal,
28(8):791-804.
• TMT political networking
• TMT functional experience
• Appropriability of TMT human capital
Li, Zhang, Li, Zhou, and Zhang, Forthcoming. Returnees vs.
locals: Who perform better in China’s technology
entrepreneurship? Strategic Entrepreneurship Journal.
• Founders’ overseas experience
• Complementary resources

9. Entrepreneurial Exit
Capital exit
• VC/PE involvement
– Valuation
– Status of VC/PE
– Role of VC/PE
• IPO
Personal exit
• Family succession
• Managerial professionalization
– Monitoring and incentive

10. Entrepreneurial Exit-IPO
• Growth Enterprises Market (GEM) board (ChiNext) (创业板）
• The first group of 28 firms debuted IPOs on October 30,
2009
• 200+ firms listed
• Potential research topics
– IPO valuation
– IPO underpricing
– Long term return
– Insider share lockup period and lockup period expiration

11. Trading Volume and Return of the 60-Day Window
Of the First Lock-Up Period Expiration
First Group N = 28 (300001-300028)
0.4 160000000
0.35 140000000
0.3 120000000
0.25 100000000
0.2 80000000 average return
trading volume
0.15 60000000
0.1 40000000
0.05 20000000
0 0

12. Trading Volume and Return of the 60-Day Window
Of the First Lock-Up Period Expiration
Non First Group (N = 145) (300029-300174)
0 1800000
t-8
t-6
t-4
t-2
t-30
t-28
t-26
t-24
t-22
t-20
t-18
t-16
t-14
t-12
t-10
t0
t2
t4
t6
t8
t10
t12
t14
t16
t18
t20
t22
t24
t26
t28
1600000
-0.05
1400000
-0.1 1200000
1000000
averge return
-0.15
800000 trade volume
-0.2 600000
400000
-0.25
200000
-0.3 0

13. THANK YOU!