Introduction
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 information and communication technology. Defined as a business organization formed for the purpose of deriving significant competitive advantage from the use of resources and sale of outputs in multiple countries, INVs play an integral role in today’s global economy as recent global conditions have made the INV form of organization 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 benefit from the globalized economy in various ways extending their technological learning by tapping into various sources of innovation and competitive advantages as found in the results of a study by Zahra, Ireland and Hitt (2000). Oviatt and McDougall (1994) identified four types of INVs using two dimensions: coordination of value chain activities and the number of countries involved namely- export/import start-ups, multinational trader, geographical focused start ups and global start-up...
... middle of paper ...
....D. and Hitt, M.A (2000) ‘International Expansion by New Venture Firms: International Diversity, Mode of Market Entry, Technological Learning and Performance’, Academy of Management Journal, 43 (5) pp. 925-950. Business Source Premier (Online). Available at http://ehis.ebscohost.com.ezproxy.liv.ac.uk/ehost/ (Accessed: 8 April 2012).
Zahra, S. & George, G. (2002) ‘International Entrepreneurship: The Current Status of the Field and Future Research Agenda’. In M. Hitt, D. Ireland, D. Sexton & M. Camp (Eds.). Strategic Entrepreneurship: Creating an Integrated Mindset. Oxford: Blackwell, 255-288.
Zahra, S.A. (2005) ‘A Theory of International New Ventures: A Decade of Research’, Journal of International Business Studies, 36 (1) pp. 20–28. Business Source Premier (Online) Available at www.jstor.org.libproxy1.liv.ac.uk/stable/pdfplus/3875288.pdf (Accessed: 10 April 2012).
Madhok, A. (1997), “Cost, Value and Foreign Market Entry Mode: The Transaction and the Firm,” Strategic Management Journal, 18(1), 39-62.
Tallman, S., & Shenkar, O. (2004). International Cooperative Ventures Strategies: Outward Investment and Small Firms from NICs. Management International Review. Vol. 39 (5), 299-315.
This model was based on empirical evidence from studying Swedish firms. The major assumption of the Uppsala model is that firms develop their international operations by taking incremental steps based on knowledge about foreign markets and this knowledge determines their commitments to foreign markets (Johanson andVahlne, 1977). Of importance in the model is the distinction between objective and experiential knowledge.
International entrepreneurial orientation (IEO) has grown exponentially in recent years (Covin & Miller, 2014). How the construct of EO has been adopted within international entrepreneurship (IE) literature, it is necessary to explore the distinctiveness of EO and IEO. As reviewed the IEO research which both EO constructs (either as composite construct or a multidimensional construct) are implicit in definitions of IEO that offered by IE scholars. Some IE scholars adopt the three dimensions of EO, in their definition of IEO (e.g., Freeman & Cavusgil, 2007). Others definition of IEO is consistent with Lumpkin and Dess (1996) five EO dimensions (Sundqvist, Kylaheiko, & Kuivalainen, 2012). Much of IEO research is essentially EO research that employs an internationalization-related dependent variable (e.g., Knight, 2001; Zhang, Ma, & Wang, 2012). As such, IEO in this present study will be seen as “concept travelling”. In essence, IEO is a subcategory of EO that shares the core elements with the border EO construct but with additional distinguishing element “internationalization” (Covin & Miller, 2014).
The author’s objective in this article is to discuss on the effective modes of entry for businesses that is planning to venture into international market. The entry modes methods discussed are aimed to help businesses to formulate an effective international business strategy and to position themselves to be successfully established in the global market.
Corporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests a formal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process of organizational renewal. Corporate Entrepreneurship has emerged as a much needed ingredient contributing towards the growth of any organization under a changing business environment.
...y, and enforceability of property rights and contracting institutions. These measurements are useful tools in understanding the institutional context of strategy and entrepreneurship in international business. Furthermore, Dung presents a short definition of resources and capabilities investment that is a significant mechanism through which the three legs of the strategy tripod come together and interact rather than being separate forces governing firm’s behaviour and successes. Furthermore, McKinley, Mone, and Moon (1999) argued that whether a particular theory gains prevalent recognition depends on its continuity, novelty, and scope. The scholars conclude that the institution-based view shines in all three attributes, thereby propelling its recent rise as the third leading perspective in strategy, in combination with the resource-based and the industry-based views.
Oesterie, M. J., Richta, H. N., & Fisch, J. H. (2012). The influence of ownership structure on internationalization. International Business Review, 22(1), 187-201.
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...
Daniels, J. D., Radebaugh, L. H., and Sullivan, D. P., (2011). International Business: Environments and Operations. Prentice Hall, Upper Saddle River, New Jersey.
Within every major economy, a great factor in providing the energy of the core of the nations economy is the small and medium enterprises. These cluster of firms are what provide new economic activity, new innovative products and services, along with growing employment and in general a crucial system in ensuring the economy is at a stable growth level. With a majority of this activity stemming from family controlled or managed businesses, the focus on developing a global and long term perspective for these firms are ever growing in importance because of the global perspective entrepreneurship has started to take.
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.