Search results

Purpose: This chapter uses the different models developed in international business and the international experience of small- and medium-sized enterprises (SMEs) to propose efficient ways of confronting globalization.

Design/methodology/approach: The positive experience of SMEs in countries driven by the pursuit of efficiency and innovation was analyzed, taking into account the stages of the development of the country. Uniqueness, cooperation, coalition, and integration are the key to success in the global market, as illustrated by case studies.

Findings: Factor-driven SMEs have the choice of contract marketing based on specialization or of increasing efficiency and establishing various kinds of coalition or cooperation. Efficiency- and innovation-driven SMEs can improve their global position by offering some unique value, by participating in or initiating a coalition, or by establishing strategic alliances with a multinational corporation.

Practical implications: Analysis of case studies illustrating each model of globalization helps the SMEs in selecting a relevant international business strategy over time.

Originality/value: Each model of globalization is illustrated by SMEs that have successfully implemented it.

This paper aims to focus on two main and related issues: evaluating whether the required entrepreneurial capabilities are present according to Gladwell’s law of the few in the Western Negev region of Israel and identifying the economic development model that can generate a viral development.

In this paper, McClelland’s classification was used to evaluate the level of motivation in the region and Gladwell’s law of the few classification was used to understand the potentially positive effect of each entrepreneur on the others and on economic development in general. To evaluate the personal and business capabilities of each entrepreneur, two groups of parameters, one describing the personal profile and the other describing the business behavior of the entrepreneurs, were used.

Most entrepreneurs are ready to cooperate with the open incubator and to contribute to generating common business interest, but mavens and connectors have few of the required personal characteristics and business attitudes. Only the salesmen have the required personal profile, but they lack the necessary business attitude. Highly motivated entrepreneurs, at need-for-power level, have both the required personal profile and business attitude. They are the ones who could generate growth, and a portion of them have the characteristics to become mavens, connectors and salesmen.

The willingness to cooperate with a neutral organization and generate common economic interest is present in the Western Negev, but the following actions are required to achieve viral development: persuade and support entrepreneurs at the highest level of motivation to be a part of the few, i.e. mavens, connectors and salesmen; improve the business attitude of mavens, connectors and salesmen; and plan the work program of the open incubator in cooperation with entrepreneurs at the need-for-power level: mavens, connectors and salesmen.

Viral economic development can occur if the few mavens, connectors and salesmen in a given sector or region have the required positive personal profile and business attitude, and if most of the entrepreneurs are ready to cooperate with a neutral organization, the open incubator and join efforts with others to generate new common business interests.

The main purpose of this paper is to propose a model of economic development able to generate a cross‐border sustainable economic development, in regions in conflict. The Italian industrial district model implements a community industry synergy process led by the authorities according to a top‐down approach. The cluster model implements a clustering specialization process led, in the American version, by a bottom‐up approach and in the European version by a top‐down approach. The regional innovation system (RIS) provides the regional and international innovation networking required for both models in order to confront the global competition. The proposed progressive model creates the industrial specialization (industrial district) required for the development of the clustering process supported by the RIS.

The authors have selected, from the list of producers (growers and producers of olive oil), a random sample of 103 growers of olives and producers of olive oil from both groups from the Northern regions (Galilee in Israel and the Northern West Bank): 26 Palestinian growers, 25 Palestinian producers, 13 Israeli growers and 39 Israeli producers of olive oil, and interviewed them.

The results show that the community‐industry synergy of the industrial district model is supported by the economic actors from both sides of the border but refused for political reasons by the regional authorities and professional associations. The raw material (olives), the human capital and the knowledge required in order to start the clustering process exist.

The study has evaluated the Israeli‐Jewish and Arab and the Palestinian olive sector, and clearly indicates that bottom‐up decision‐making process is the only way for the moment for initiating the cluster and RIS models in the olive sector. The intervention of a third party is required in order to start the bottom‐up implementation of the industrial district model and launch the clustering process.

The main contribution of this paper lies in organizing the industrial district in such a way that it will generate a cluster in the long run. Thus, it is called progressive model.