MOD2 WEEK 1 HAND IN ASSIGNMENT REVIEW OF OVIATT AND McDOUGAL'S "Toward a Theory of International New Ventures" Oviatt and Mcdougall in their paper, Toward a Theory of International New Ventures, tried to identify and define International New Ventures in the context of the global marketplace. Their work gained global acclaim in its bid to pose questions about the validity of existing theory on internalization. A decade later, Zahra’s work titled “A theory of international new ventures: A decade of research” attempts to build on prominent aspects of the work of Oviatt and McDougall with the hope of highlighting their important contributions to the field of international new ventures. I will attempt to highlight the areas where Zahra’s work builds on the article of Oviatt and McDougall: AGE AT INTERNATIONALIZATION
According to Oviatt and McDougall, an INV from inception seeks to derive significant competitive advantage from the use of resources and sale of output in various countries. They further opined that age at internationalization was important to successful expansion, survival and performance. Zahra, S. A. (2005) opined that it is the variation in the gestation period that has the most impact because it can impact the clarity of the organization’s essence. FOUNDER’S COGNIZANCE
INVs espouse different assumptions and cognitions of the market and competition, possibly leading them to seek and identify different types of new opportunity that they exploit differently (Zahra et al 2004). The founder’s ability to visualize a new opportunity and invest resources helps them spot and exploit opportunities. OPPORTUNITIES WITHIN THE FIRM
In contrast to Oviatt and McDougall’s views that entrepreneurs are better at spotting opportunities within the external environment, Zahra posits that it might just be the international opportunity usually concealed by bureaucracy and old organizational forms that can change a company. PREVALENCE OF INV
Zahra, in his article says...
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