Satisfactory Essays
The article ‘A theory of international new ventures’ written by Shaker A Zahra (2005) preludes to the essential framework established by Oviatt and McDougall (1994) and provides the Oviatt and McDougall (1994) definition of an INV whilst leading to an examination of an identified gap which existed within the theory. However, Zahra (2005) recognized that the article provides a framework in the studies of International New Ventures (INVs); in the importance of new ventures (smaller and younger); its relevance to the international position; and value creation.
There are key factors Zahra (2005) extracts from Oviatt and McDougall (1994); explained below:
1. Age factor versus action factor: two areas, highlighted, to determine what would be more determining factor in order to produce results in the international arena. Zahra (2005) discussed that sub-element on establishing the actual period of gestation period was difficult to determined as new ventures starts at different stages; for example, one derived from an established company. This INV would benefit from the wealth of knowledge and resources necessary to be competitively advantaged.
2. Managerial Capacity: It was stressed throughout the article that may benefit, even at the offset of the INV from the managers to foresee opportunities and seize them by strategizing and understanding the international market arena.
3. Zahra (2005) argued the importance for INVs to protect their unique intangible assets such as organizational culture, relationship and innovative capabilities.
4. Entrepreneurial quality; the ability for managers to refocus, shift and adapt over time may be beneficial; allocating resources and gaining access to international network and chain value; or detriment...

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... of general understanding of laws and regulations which governed the countries the INV will conduct business.
Flexibility is a requirement in globalization, once conducting business with another company or individual in another region or in the international arena, this may be considered to add to globalization. Advance technology and the hypercompetition condition faced by new venture forces, a mandatory flexibility to adjust and adapt. “.. Responsiveness and product adaptation are becoming increasely critical for business success, proximity to foreign customers is an important driver of overseas investment” (Shenkar and Luo, 2007 pp 13).

Child, J. (2005) Organization: contemporary principles and practice. Malden, MA: Blackwell Publishing, pp. 29.
Shenkar, O. & Luo, Y. (2007) International business.2nd Ed. Thousand Oaks, CA: Sage Publications pp 50)
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