A Theory of International New Ventures: A Decade of Research
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A Theory of International New Ventures: A Decade of Research
Shaker A Zahra
Journal of International Business Studies, Vol 36 No. 1 (Jan 2005) p 20-28
Published by: Palgrave MacMillan Journals
Assignment:
Explain how the article builds on the seminal work of Oviatt and McDougall in their paper, Toward a Theory of International New Ventures, published in 1994. Describe and analyse the factors identified in the Zahra article as giving competitive advantage to new firms in the globalised economy. Do you agree that these are the key factors underlying success in the international business environment? Give reasons for your answer.
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Solution Summary
Describes and analyzes international new ventures, using a 1994 paper as the guide - 481 words.
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The work of Oviatt and McDougall expands on the idea of the globalized economy. In particular, I have identified the following factors that are addressed in the Zahra article. These factors give new firms a competitive advantage in the globalized economy:
- Culture of the organization - values and norms
- Ethics in international dealings
- Foreign Direct Investment
- Entry into the markets
- Accounting practices
- How the organization converts currency
- Its international strategy
- Strategic positioning
- Marketing tactics
The 21st Century has brought about a new era of rapid, dynamic and sometimes turbulent changes. This change has also transformed the way work is performed in organizations. However, it has been hard for some organizations to keep up with the constant ...
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