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The survival of international new ventures

  • Ram Mudambi

    ([1] Department of General and Strategic Management, Institute of Global Management Studies, Fox School of Business, Temple University, Philadelphia, PA, USA [2] Department of Economics, University of Reading, UK)

  • Shaker A Zahra

    (Center for Entrepreneurial Studies and Department of Strategic Management and Organization, Carlson School of Management, University of Minnesota, MN, USA)

International new ventures (INVs) are a popular mode of entry into foreign markets. INVs, those companies that enter foreign markets at inception, often suffer the two liabilities of newness and foreignness, which may increase the odds of their failure. This paper empirically examines the survival of INVs by comparing them with other sequential modes of international operations (e.g., acquisitions). Data from 275 British firms show that INVs have lower unconditional survival probabilities than other modes of foreign market entry. Our analyses also show that differences in survival probabilities disappear when the firms’ competitive strategies are considered. Journal of International Business Studies (2007) 38, 333–352. doi:10.1057/palgrave.jibs.8400264

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Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

Volume (Year): 38 (2007)
Issue (Month): 2 (March)
Pages: 333-352

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Handle: RePEc:pal:jintbs:v:38:y:2007:i:2:p:333-352
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