The Survival of International New Ventures

Journal of International Business Studies, vol.38(2): 333-352, 2007

 Ram Mudambi* and Shaker Zahra**

Abstract

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 to 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 firmsí  competitive strategies are considered.

            Keywords: International new ventures, firm survival, multinational firms

* Fox School of Business and Management, Temple University, Philadelphia, USA.

** Carlson School of Management, University of Minnesota, Minneapolis, USA.