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A Comparison of International and Domestic New Ventures

Published on Mar 1, 2003in Journal of International Entrepreneurship
· DOI :10.1023/A:1023246622972
Patricia P. McDougall33
Estimated H-index: 33
(IU: Indiana University Bloomington),
Benjamin M. Oviatt19
Estimated H-index: 19
(GSU: Georgia State University),
Rodney C. Shrader11
Estimated H-index: 11
(UIUC: University of Illinois at Urbana–Champaign)
Source
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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