Theory of New Ventures

Oviatt and McDougall, (1994, p.49) define an international new venture (INV) as a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries.

Zhara demonstrates in his article the phenomenon of INV that international new ventures are important and the start-ups are of international origin. It is believed that the management of INV competencies is high throughout the international acting and gaining of experiences in different cultural areas and learning respectively dealing with international issues. International new ventures appear in certain areas of business such as service, high-tech or aquaculture and do not need necessarily foreign investments. The new ventures do not necessarily need to own their resources in order to internationalize their operations but 'going international in a firms early life cycle can bestow important and almost instant advantages in the INV' (Zhara, 2005). The four types of international new venture which are mentioned in Zhara's (2005) article are 'export important start-ups, multinational trader, geographically focused start-ups and global start-ups' which is the outcome of the two dimensions 'coordination of value chain and the number of involved countries' which were used by Oviatt and McDougall (1994).

That INV can sustain on the market and extend their business it is crucial that continuous gain competences and knowledge of 'markets, competition, suppliers and customer offers' as Zhara (2005) stated in his article 'A theory of new ventures'. Those factors give the entrepreneur of INV important information about the opportunities in the global markets or provide substantial information to prepare a market entry respectively to develop new products and a way how to offer new products to customers as well as new organizing the operation of INV. In order that entrepreneurs of international new ventures are successful they are forced to be innovative, take certain risks to enter markets and acting actively to generate business. Furthermore as Zhara (2005) cited Dimitratos and Plakoyiannaki (2003) there are six dimensions were the first is 'market orientation' which shows a firms interest to commit to international activities. The second is 'learning orientation' which demonstrates whether a firm is aware and understands foreign markets and the market behavior respectively which opportunities exists in the market. 'Innovation prosperity' the third dimension which refers to a firm's mindset to generate new ideas such as product innovation or new strategies to gain more customers. The forth is 'risk attitudes' and requires strong entrepreneurial ability as well as business understanding under the consideration of commitments when it is required to use resources which might not meet the demands in terms of skills to enter international