Entrepreneurial and Innovative Business Culture

Introduction:

The publication of Oviatt and McDougall work “Toward a Theory of International New Ventures” in 1994 attracted an attention throughout the world to the increasing role of young firms in the global marketplace. The authors highlighted the importance of smaller and younger firms and their distinguishing features that stand them internationalize rapidly and create value for their owners and founders. The article of Zahra Shaker (2005) which is built on the abovementioned the seminal work of Oviatt and McDougall is essentially based on a few but very complex characteristics that sit at the base of successful international new ventures: entrepreneurial qualities of the company.

Literature Review/Theoretical Foundations:

These are primarily linked to the ownership-managers of the company. Individuals that have international experience and intuition, risk taken, open minded recognition of international business opportunities, i.e. 'founders' cognition of opportunities' based on the following characteristics: a) Market orientation; b) Learning orientation; c) Innovation propensity; d) Risk oriented; e) Network oriented; f) Motivation oriented; g) Capabilities and capacity, both economical and organizational, to stand-by and overtake the typical liabilities of a new enterprise; h) Inexperience and newness limiting the tapping tom resources and networks; i) Small which is proportional to the resources available and the scalability of operation both in production capacity and or in internationalization itself; j) Understanding and learning of the new cultures, which potentially requires time.

These liabilities have to be overtaken by a very conscious Management of economical resources, careful selection of human resourc...

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...el is respondent in specific markets and in particular where the capital investment, at list during the first years of live cycle, is not as determinant. For example, it will be more difficult to imagine the success of the same model in a highly intensive business like the Oil and Gas industry. For such industries a capital, experience and a consolidate supply base are essential.

Reference list:

Grove, A. (1983) High Output Management. Random House (NY).

Grove, A. (1996) Only the Paranoid Survive. Doubleday

Brunelli, R. (2011) Intel (NASDAQ:INTC)’s Far East Connection. Journal of Financial News [Online]. Available from: http://www.emoneydaily.com/intel-nasdaqintc%E2%80%99s-far-east-connection/6987801 (Accessed: 10 May 2011)

Zahra, S. (2005) A Theory of International New Ventures: A Decade of Research, Journal of International Business Studies