Competitive Advantage for INVs

Competitive Advantage in Global Economy

The seminal work of Oviatt and McDougall (1994) on international new ventures (INV) informed the literature, particularly with regard to posing different tenets than those commonly accepted in Uppsala model. Principally, the Uppsala model theories pointed to a number of attributes that were considered basic to firms moving into or intensifying their participation in foreign markets. The indicators of the Uppsala model are generally considered to be as follows: (1) firms gain experience from the domestic market before they engage in foreign diversification; (2) foreign operations are typically begun in countries that are geographically or culturally close to those of the home country of the firm, and move gradually to countries that are geographically distal or are culturally more different; (3) firms begin operating in foreign countries through traditional export activity and move gradually to modes of operation that are more...
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