Which strategy involves partnering with internationally active firms for international venture success?

Which strategy involves partnering with internationally active firms for international venture success?

• A. Building an entrepreneurial team
• B. Cooperating with internationally active firms
• C. Learning from others
• D. Acquiring local resources

Answer: (B)

The strategy of partnering with internationally active firms for international venture success is accurately represented by cooperating with internationally active firms. This approach leverages the strengths, experiences, and market insights of established firms that are already engaged in international operations. By forming alliances or partnerships with these companies, businesses can gain access to valuable resources such as distribution networks, technological expertise, and local market knowledge, which can facilitate smoother entry into foreign markets. Cooperation not only reduces risks associated with international ventures—such as market entry challenges, cultural differences, and regulatory hurdles—but also enables firms to share investment costs and collaborate on developing tailored products or services for specific markets. Moreover, established firms often bring credibility and brand recognition, which can enhance the new venture's reputation and acceptance within a foreign market. Building an entrepreneurial team, while essential for driving innovation and agility within a business, does not specifically address the need for partnership with already successful international entities. Learning from others refers to gaining insights from previous experiences, which can be beneficial but does not directly involve the strategic cooperation aspect. Acquiring local resources is also important but typically focuses on the logistical or material side of entering a new market rather than forming strategic alliances with existing players in the international arena.

The strategy of partnering with internationally active firms for international venture success is accurately represented by cooperating with internationally active firms. This approach leverages the strengths, experiences, and market insights of established firms that are already engaged in international operations. By forming alliances or partnerships with these companies, businesses can gain access to valuable resources such as distribution networks, technological expertise, and local market knowledge, which can facilitate smoother entry into foreign markets.

Cooperation not only reduces risks associated with international ventures—such as market entry challenges, cultural differences, and regulatory hurdles—but also enables firms to share investment costs and collaborate on developing tailored products or services for specific markets. Moreover, established firms often bring credibility and brand recognition, which can enhance the new venture's reputation and acceptance within a foreign market.

Building an entrepreneurial team, while essential for driving innovation and agility within a business, does not specifically address the need for partnership with already successful international entities. Learning from others refers to gaining insights from previous experiences, which can be beneficial but does not directly involve the strategic cooperation aspect. Acquiring local resources is also important but typically focuses on the logistical or material side of entering a new market rather than forming strategic alliances with existing players in the international arena.