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A Comparison of International and Domestic New Ventures

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Abstract

Differences between international new ventures (INVs) and domestic new ventures (DNVs) were examined using a sample of 214 IPO new ventures (ventures 6 years old or less). INVs were found to be significantly different on the basis of their entrepreneurial team experience, strategy, and industry structure. Specifically, the entrepreneurial team of INVs exhibited higher levels of previous international and industry experience. The strategies of INVs were more aggressive, and they operated in more channels of distribution than did DNVs. INVs competed on the basis of differentiation, placing greater emphasis on product innovation, quality, service, and marketing as strategic weapons. In addition, INVs were more likely than DNVs to operate in industries characterized by a high degree of global integration.

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Authors and Affiliations

  1. Indiana University, 1309 East Tenth Street, Bloomington, IN, 47405-1701

    Patricia P. McDougall

  2. Georgia State University, USA

    Benjamin M. Oviatt

  3. University of Illinois, USA

    Rodney C. Shrader

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  1. Patricia P. McDougall
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  2. Benjamin M. Oviatt
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  3. Rodney C. Shrader
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McDougall, P.P., Oviatt, B.M. & Shrader, R.C. A Comparison of International and Domestic New Ventures. Journal of International Entrepreneurship 1, 59–82 (2003). https://doi.org/10.1023/A:1023246622972

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