SUBJECT AREA Self improvement
CREATED ON 26th March 2018

International New Ventures Essay

Introduction The article 'A Theory of International New Ventures: A Decade of Research' by Zahra (2005) relies on findings based on research sparked by the work of Oviatt and McDougall (1994) 'Toward a Theory of International New Ventures'. In this article, Zahra (2005) builds on the authors' research frame, highlighting aspects which expand on the initial article and pointing out those which require re-examination in the light of collecting empirical findings. The expression 'global entrepreneurship' as developed by Oviatt and McDougall (1994) brings international business theory into an integrated model of International New Ventures (INVs) with an approach based on unique resources and network relationships facilitated by information and communication technologies. Defined as a business organization formed with the intention of deriving significant competitive advantage from the use of funds and sale of outputs in many countries, INVs play a significant part in the present global market as recent worldwide conditions have reached the INV form of business competitive (Oviatt and McDougall, 1994). Literature Review The emergence of INVs is one of the defining features of modern global capitalism (Oviatt and McDougall, 1994). These INVs gain in the globalized economy in a variety of ways extending their technological learning by tapping into different sources of innovation and competitive benefits as found in the outcomes of a study by Zahra, Ireland and Hitt (2000). Oviatt and McDougall (1994) identified four types of INVs with two dimensions: manipulation of value chain activities and the number of nations involved specifically- export/import start-ups, multinational trader, geographical focused start ups and worldwide start-up...

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