International New Ventures Essay

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The article ‘A Theory of International New Ventures: A Decade of Research’ by Zahra (2005) is based 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 framework, highlighting aspects which expand on the original article and pointing out those which require re-examination in the light of accumulating empirical findings. The term ‘international 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
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Zahra (2005) points out one insight put forth by Oviatt and McDougall (1994) that INVs do not need ownership of resources used to internationalize their operations, rather emphasizing that it is the manner of creating value through the development and protection of their intangible assets (culture, relationships and innovating activities) that enhances their entrepreneurial activities in foreign markets and acts as a factor of competitive advantage. This standpoint is supported by (Karra, Phillips and Tracey, 2008; Hamel and Pralahad, 1994). In his article, Zahra (2005) highlights another factor for competitive advantages of INVs as the ability to expand internationally in its early life cycle while still unfettered with those limitations faced by established organizations as suggested by Oviall and McDougall (1994) and supported by Fan and Phan (2007) who state that the fast internationalizing strategy can be survival enhancing or even be the path to profit maximization for the firm. Zahra (2005) argues

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