The article "Toward a Theory of International New Ventures" by Benjamin M. Oviatt and Patricia Phillips McDougall explores the phenomenon of international new ventures (INVs), which are organizations that are formed from the outset with a global focus. The authors argue that traditional theories of multinational enterprises (MNEs) do not adequately explain the emergence of INVs, which are characterized by their international origins, resource commitments across multiple countries, and competitive advantages derived from unique resources and knowledge. The paper presents a theoretical framework that integrates international business, entrepreneurship, and strategic management theories to explain the existence and success of INVs. This framework identifies four necessary and sufficient elements for the existence of INVs: (1) internalization of transactions, (2) reliance on alternative governance structures, (3) establishment of foreign location advantages, and (4) control over unique resources. The authors also discuss the challenges and opportunities presented by changing economic, technological, and social conditions, such as improved communication and transportation, market homogenization, and increased international mobility of human capital. They argue that these changes have reduced the barriers to entry for new ventures and made it possible for them to compete globally from the outset. The article further categorizes INVs into different types based on their value chain activities and geographic scope, including New International Market Makers, Geographically Focused Start-ups, and Global Start-ups. Each type is described in detail, highlighting the unique characteristics and competitive advantages of each. Finally, the authors conclude by emphasizing the importance of understanding the role of entrepreneurs in the dynamics of INVs and the need for empirical research to explore the mechanisms that protect rents derived from unique knowledge. They suggest that the framework provided can guide future research and contribute to a deeper understanding of the phenomenon of international new ventures.The article "Toward a Theory of International New Ventures" by Benjamin M. Oviatt and Patricia Phillips McDougall explores the phenomenon of international new ventures (INVs), which are organizations that are formed from the outset with a global focus. The authors argue that traditional theories of multinational enterprises (MNEs) do not adequately explain the emergence of INVs, which are characterized by their international origins, resource commitments across multiple countries, and competitive advantages derived from unique resources and knowledge. The paper presents a theoretical framework that integrates international business, entrepreneurship, and strategic management theories to explain the existence and success of INVs. This framework identifies four necessary and sufficient elements for the existence of INVs: (1) internalization of transactions, (2) reliance on alternative governance structures, (3) establishment of foreign location advantages, and (4) control over unique resources. The authors also discuss the challenges and opportunities presented by changing economic, technological, and social conditions, such as improved communication and transportation, market homogenization, and increased international mobility of human capital. They argue that these changes have reduced the barriers to entry for new ventures and made it possible for them to compete globally from the outset. The article further categorizes INVs into different types based on their value chain activities and geographic scope, including New International Market Makers, Geographically Focused Start-ups, and Global Start-ups. Each type is described in detail, highlighting the unique characteristics and competitive advantages of each. Finally, the authors conclude by emphasizing the importance of understanding the role of entrepreneurs in the dynamics of INVs and the need for empirical research to explore the mechanisms that protect rents derived from unique knowledge. They suggest that the framework provided can guide future research and contribute to a deeper understanding of the phenomenon of international new ventures.