Double Whammy or Double Advantage: “Foreignness” and “Newness” as Determinants of Success in International Business

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.