International entrepreneurship Essay Example | Topics and Well Written Essays - 2000 words

International entrepreneurship - Essay Example This definition of international entrepreneurship arises from the fact that IE arises from the desire to expand their operation beyond the borders of the countries of their operation. International entrepreneurship is becoming increasingly important in many economies around the world as corporations take advantage of the vast opportunities availed by globalization. Consequently, companies, both small and large multinationals, are increasing finding it necessary to expand their operations into other countries or regions so that that they can tap the numerous benefits availed by such ventures. Hence, a perfect definition for international entrepreneurship must entail the desire to create a successful business venture in a country different than the present country of operation. My definition captures this aspect of IE. Although the wording used in defining IE differs from one scholar to another, almost all of the definitions point to one area: that of seeking out and conducting new and innovative business activities across national borders. For example, McDougall and Oviatt (903) define IE as ‘a combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create value in organizations’. ... McDougall and Oviatt go a step further in their definition to state that IE creates value in an organization. This is absolutely right as IE elevates the profile of a company to that of a multinational, particularly if it establishes markets in numerous international markets. Expansion into foreign markets also adds value in form the company gaining skills and experience from the challenges and successes realized in the foreign markets. The same concept is captured in by Zahra and George’s definition of IE when they mention that companies establish operations in foreign markets in pursuit of competitive advantage. Another definition for IE was given by IE scholars meeting in 2008. Taking into consideration McDougall and Oviatt’s definition, the scholars aimed to expand this earlier definition to make it more concise and add an outcome or value to it. After consultations amongst themselves, they defined IE as â€Å"the creation of economic value through cross-border ent repreneurial activity† (ie-scholars discussion). This latest definition simply echoes those made earlier, particularly that made by McDougall and Oviatt. However, they add the aspect of value creation through exports and imports. Due to the recent emergence of globalization and creation of trading blocs such as the EU, AU, and NAFTA it has become necessary to create a distinction between international entrepreneurship from traditional entrepreneurship. While both types of entrepreneurships involve innovation, risk-seeking behavior, and creatively discovering and exploiting opportunities, the former transcends national borders or goes beyond the company’s domestic market while the latter is concentrated within