UNDERSTANDING “TOWARD A THEORY OF INTERNATIONAL NEW VENTURES” BY OVIATT AND McDOUGALL (1994).
WEEK 1: THE INTERNATIONAL BUSINESS ENVIRONMENT
NAME: ISRAEL OHIA
DATE: 12TH JUNE 2013.
MODULE: INTERNATIONAL BUSINESS AND EMERGING MARKETS (KMGT-620-5A)
INSTRUCTOR: Dr. JIM SKERTICH
INTRODUCTION: The article written by Oviatt and McDougall (1994) more than a decade ago and attracted so much attention is in regard to young firms and their growth in the global marketplace. In their article, they were able to bring to fore the importance of International New Ventures (INVs), internationalization and their advantages to the global marketplace. SHENKAR, O. and LUO, Y. (2008, ...view middle of the document...
INTERNATIONAL NEW VENTURES AND COMPETITIVE ADVANTAGE: International New Ventures (INVs) can gain competitive advantage when the founder has the ability to foresee a new opportunity and invest resources thereby exploiting such opportunities. In as much as majority of new businesses do not move into the global market quickly, ZAHRA, S.A. (2005) argues that according to Oviatt and McDougall (1994), INVs are able to give more competition, make more profit and have the tendency for massive growth. With globalization and the emergence of technology, competition in the global marketplace have given rise to competitive environment and making new firms to seek cooperation with one another thereby giving them access to new technologies and markets. This has made these INVs to be successful through cooperation and the use of the Internet as they have been able to reach their prospective customer and suppliers too. Also, the role of SMEs in International trade is another advantage as it brings innovation and completes the global market. These SMEs are also tools used in International trade to transfer knowledge and managerial skills in the global marketplace. SME firms in India are major players in the economy of the country with consistent high growth, giving tough competition to other firms, taking risks, makes more profit and growth rate is massive. Oviatt and McDougall (1994) were apt to state that being proactive, innovative and taking risks were the qualities of IE. According to ZAHRA, S.A. (2005), there are six dimensions to International Entrepreneurial culture and they include; Innovation, Ability to take risks, Market orientation, Learning...