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Toward a theory of international new ventures

Author

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  • Benjamin M Oviatt

    (Department of Managerial Sciences, Robinson College of Business, Georgia State University, Atlanta, GA, USA)

  • Patricia Phillips McDougall

    (School of Management, Ivan Allen College of Management, Policy, and International Affairs, Georgia Institute of Technology, Atlanta, GA, USA)

Abstract

Organizations that are international from inception – international new ventures – form an increasingly important phenomenon that is incongruent with traditionally expected characteristics of multinational enterprises. A framework is presented that explains the phenomenon by integrating international business, entrepreneurship, and strategic management theory. That framework describes four necessary and sufficient elements for the existence of international new ventures: (1) organizational formation through internalization of some transactions, (2) strong reliance on alternative governance structures to access resources, (3) establishment of foreign location advantages, and (4) control over unique resources. Journal of International Business Studies (2005) 36, 29–41. doi:10.1057/palgrave.jibs.8400128

Suggested Citation

  • Benjamin M Oviatt & Patricia Phillips McDougall, 2005. "Toward a theory of international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 29-41, January.
    • Handle: RePEc:pal:jintbs:v:36:y:2005:i:1:p:29-41
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