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...
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....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).
The rise in globalization over the last few decades has helped facilitate and encourage corporations to expand into international markets. This paper will review the five common international expansion entry modes, and the pros and cons of each method. Finally, my employer is in the technology industry and I will breakdown and recommend which entry mode would work best for international expansion.
As the globalization of world markets continues unabated, American businesses seek to explore and develop capabilities to internationally source or distribute goods, services or intellectual property. The recent economic downturn has only made taking advantage of strategic opportunities through international alliances more appealing. All but the largest companies lack the infrastructure, resources, experience and management strength to enter international markets de novo. Business alliances of various forms allow companies to access the global marketplace more economically and effectively. Legal and regulatory, cultural, language and currency differences make partnering in the form of an international joint venture (IJV) an attractive option.
Hill, C., Wee, C. and Udayasankar, K. 2012.International Business:An Asian Perspective. 8th ed. Singapore: McGraw-Hill.
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.
Ahlstrom, D., & Bruton, G. D. (2010). International Management: Strategy and Culture in the Emerging
Oesterie, M. J., Richta, H. N., & Fisch, J. H. (2012). The influence of ownership structure on internationalization. International Business Review, 22(1), 187-201.
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 business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.
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.
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.
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
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...
Since the end of World War II, international operations have become a reality for an increasing number of corporations. Many of these initial efforts began as simple export schemes to sell goods overseas to supplement domestic sales. Over time, however, international operations have become increasingly more complex: from joint-ventures to purchasing existing foreign firms to ‘green-field’ start-ups. While export operations usually require no more than extended business trips overseas, more complex international operations demand long-term assignments of key personnel outside their home-country. What would normally be considered routine business transactions in the home country can become very complicated when they are conducted between individuals and organizations from different cultures. In this essay we will examine how this cultural gap can affect international business and joint ventures.
Daniels, J. D., Radebaugh, L. H., and Sullivan, D. P., (2011). International Business: Environments and Operations. Prentice Hall, Upper Saddle River, New Jersey.
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.