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Double Whammy or Double Advantage: ¡°Foreignness¡± and ¡°Newness¡± as Determinants of Success in International Business

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  • Ravi Chinta
  • Mee-Shew Cheung
  • Nejat Capar

Abstract

The interplay of newness and foreignness is critical to international companies¡¯ success. The assumption that foreignness and newness can work together to cancel out or reduce the disadvantages associates with each factor came about from the large body of research on both the advantages and disadvantages of both factors. This study further explores both concepts and their various effects on international new ventures (INV) and existing international companies. The study presents a comprehensive framework to outline the pros and cons of newness and foreignness and how to manage them. This is a conceptual paper that provides an extensive literature review on this topic. It further presents four propositions to be tested in future research.

Suggested Citation

  • Ravi Chinta & Mee-Shew Cheung & Nejat Capar, 2015. "Double Whammy or Double Advantage: ¡°Foreignness¡± and ¡°Newness¡± as Determinants of Success in International Business," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 6(1), pages 76-87, February.
    • Handle: RePEc:jfr:jms111:v:6:y:2015:i:1:p:76-87
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    References listed on IDEAS

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    3. Susan Coleman, 2004. "The "Liability of Newness" and Small Firm Access to Debt Capital: Is There a Link?," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 9(2), pages 37-60, Summer.
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    Cited by:

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    3. Henrik Barth & Ghazal Zalkat, 2020. "Immigrant Entrepreneurship in Sweden: The Liability of Newness," Sustainability, MDPI, vol. 12(16), pages 1-18, August.

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