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Purpose This study aims to examine the pivotal role of returnee entrepreneurs (REs) in fostering innovation within an emerging country context, using Philippines as the research setting. It explores the heterogeneity of REs by understanding their personal profile, their entrepreneurial motivations and their transformative impact on local entrepreneurial ecosystems. Design/methodology/approach Based on an inductive qualitative multiple case study using constructivist grounded theory, data were collected through semi-structured interviews with Manila-based REs and experts and complemented by observations and secondary sources. Data were analyzed using the Gioia methodology, allowing the development of research propositions to link empirical findings with theoretical insights. Findings REs were categorized into four types: micropreneurs, freelancers, government-assisted and Ilustrados, based on their human capital and institutional integration. Ilustrados, with their high human capital and institutional support, lead innovation in the Manila entrepreneurial ecosystem through their innovative startup ventures. Practical implications Set in an emerging market context where there are resource scarcities, structural gaps and institutional voids limiting the ecosystem, this study offers actionable insights for policymakers to tailor support and maximize RE contributions to overcome these structural challenges as they create their ventures back home. Originality/value This study’s originality lies in introducing the Returnee Entrepreneur Opportunity Framework, which refines the mixed embeddedness approach by categorizing REs into four distinct types. Furthermore, it identifies the Ilustrado Premium, the preferential treatment that Ilustrados received upon reintegration, as a novel mechanism explaining how they get an advantage in early stages of venture building.
Marin et al. (Mon,) studied this question.