Kalanit Efrat

The interaction between environment and strategic orientation in born globals’ choice of entry mode

Purpose – Entry modes are a central aspect of international business, particularly for young firms lacking organizational experience and capital, such as born global (BG) firms. Few studies on BG internationalization have addressed the antecedents to entry mode decisions in BG firms. Based on the two main groups of factors impacting entry mode decisions in general, namely environmental (external) conditions and firms’ strategic characteristics, the purpose of this paper is to explore how the interaction between country and market factors and BGs’ strategic orientation affects BGs’ choice of low- vs high-commitment entry modes. Design/methodology/approach – Data from 104 Israeli high-tech BG firms were gathered in field interviews with managers. Preliminary analyses assessed non-response bias. Findings – Most BGs showed a strong Prospector orientation manifested by exploration and exploitation of opportunities. This in turn moderated the impact of several host market factors on the choice of entry mode, en...

The theory of planned behavior, materialism, and aggressive driving

PURPOSEnAggressive driving is a growing problem worldwide. Previous research has provided us with some insights into the characteristics of drivers prone to aggressiveness on the road and into the external conditions triggering such behavior. Little is known, however, about the personality traits of aggressive drivers. The present study proposes planned behavior and materialism as predictors of aggressive driving behavior.nnnDESIGN/METHODOLOGYnData was gathered using a questionnaire-based survey of 220 individuals from twelve large industrial organizations in Israel. Our hypotheses were tested using structural equation modeling.nnnFINDINGSnOur results indicate that while planned behavior is a good predictor of the intention to behave aggressively, it has no impact on the tendency to behave aggressively. Materialism, however, was found to be a significant indicator of aggressive driving behavior.nnnRESEARCH LIMITATIONSnOur study is based on a self-reported survey, therefore might suffer from several issues concerning the willingness to answer truthfully. Furthermore, the sampling group might be seen as somewhat biased due to the relatively high income/education levels of the respondents.nnnORIGINALITY/VALUEnWhile both issues, aggressive driving and the theory of planned behavior, have been studied previously, the linkage between the two as well as the ability of materialism to predict aggressive behavior received little attention previously. The present study encompasses these constructs providing new insights into the linkage between them.

Analyzing the Impact of Culture on Average Time Spent on Social Networking Sites

The study examines the influence of national culture on national averages of time spent (ATS) visiting the largest social networking sites (SNSs): Facebook, Twitter, and LinkedIn. The analysis uses cultural dimensions adopted from both the works of Hofstede and Schwartz, while controlling for country e-readiness and median population age. The findings suggest that cultures influence may be moderated by the media richness and type of network focus of each SNS. Overall, in rich-media SNSs, egalitarianism positively impacts ATS. Individualism and masculinity only impact ATS on friendship-oriented SNSs. Additionally, uncertainty avoidance and intellectual autonomy only impact ATS on professional-oriented SNSs.

The enigma of private brands in the emerging Mediterranean countries

Purpose – The aim of this paper is to discuss the import of private branding strategy for retailers, manufacturers and customers. It seeks to focus on private branding strategies in the emerging MEDA markets, and, using Israel as a case study, aims to identify why the huge potential of private brands has not been exploited in these countries.Design/methodology/approach – Both secondary data and empirical studies of Israeli exporters and chain store managers were conducted to determine what strategies are used to market private brands in developed, emerging and developing MEDA countries. Also included is a case study based on an analysis of four separate periods of the marketing of private brands in Israel, which are very similar to those seen in other emerging MEDA countries such as Greece and Turkey.Findings – A review of private branding strategies in the MEDA countries reveals three different markets, each one managed differently: developing, emerging, and developed. The most attractive MEDA markets wi...

Environmental characteristics and technological capabilities' interaction in high-technology born global firms

This paper focuses on the growing phenomenon of Born Globals (BGs) – small and technology-oriented firms that become international soon after establishment. Previous research identified that, owing to their unique traits, BGs tend to incept more rapidly in high technology industries. These firms are distinguished by moving quickly from inception to first foreign market entry – a strategy that carries considerable risks. Yet though this early internationalisation is a unique trait of BGs and is their core defining factor, some aspects of it are still under-addressed in the literature. One such element is the role of the external environment, namely target market factors, previously found to affect the operations and performance of gradually globalising firms. This conceptual paper proposes a model for how BGs technological capabilities interact with their niche marketing focus strategy, and how these interactions moderate the risk factors associated with target markets factors to influence BGs performance.

Materialism and Aggressive Driving: An Israeli Study

Aggressive driving is a growing problem that has been identified as a major risk factor for car accidents. Previous research has provided some insights about the characteristics of drivers prone to aggressiveness on the road, as well as external triggers of road aggressiveness. However, little is known of the personality traits of aggressive drivers. This study employs the theory of planned behavior (TPB) to consider the role of materialism in aggressive driving, and particularly its three source traits: envy, possessiveness, and non-generosity. Our findings show that envy and non-generosity have an impact on aggressive driving.

Chutzpah and Its Linkage to Marketing Innovation, and Performance

In a business and economic world now characterized by reduced (and therefore more carefully allocated) consumer spending power, competition is cut-throat and dynamic. In this context, commercial organizations require competitive advantages to survive and grow. One key to competitiveness and success is innovation. Most studies of innovation, however, focus on the process and/or outcomes of innovation. Little is still known about what makes innovation successful in developing competitive advantages. In addition, while past research in innovation concentrated on technological breakthroughs and new product development, successful innovation increasingly characterizes the whole management and organizational process, and strategy. We propose the term Chutzpah as means of implementing marketing innovativeness. We aim at identifying the elements of Chutzpah by conducting an exploratory study based on a preliminary qualitative research, and a second quantitative research, in the advertising context. Our results substantiate the relevancy of Chutzpah to marketing innovation and also its impact on marketing performance.

Trust, Conflicts, and Orientation Interact in Measuring Export Performance

Dynamic environments, especially that of the global arena, force firms to operate in condensed timeframes. Such constrains call at times for specific moves and strategies. One such case is when firms, usually small and resource-constrained such as Born Globals, approach foreign markets through the use of local intermediaries (e.g. distributors). Using such entry modes enables firms to create a rapid foothold in a large number of markets, but it may also lead to conflict between the partners and eventually damage the firm’s international performance. The purpose of this study is to examine firms’ interaction orientation and type of entry mode as antecedents of trust, and their impact on conflict arising from differences of opinion. The findings support the framework presented, indicating that conflicts result from lower levels of trust between the parties and also from the absence of expressed intentions regarding collaboration and sharing.

Determinants of Entry Modes and Performance of Entrepreneurial Born-Global Firms

This paper focuses on “Born Globals” (BGs) - small and entrepreneurial firms that become international soon after inception (Aspelund, Madsen, and Moen 2007; Kuivanlainen, Sundquist, and Servais 2007). Knight and Cavusgil (1996:11) defined BGs as “small, technology-oriented companies that operate in international markets from the earliest days of their establishment”. The closeness between inception and first foreign market entry is the unique trait of BGs and defines the constrains they face. Although differences between BGs and Gradually Globalizing firms (GGs) have been researched, most studies have concentrated on the internationalization process and the factors contributing to it. Less is known about the factors influencing BGs internationalization, and market selection, as well as their post-inception international operations, two aspects which are the focus of this conceptual paper. Previous research provided a model identifying tree factor groups influencing firms’ international strategy and performance (Aaby and Slater 1989). Based on this model we outline several propositions regarding the impact of three environmental factors, namely psychic distance, competition, and country risk, on BGs choice of entry mode, and on their performance as their outcome.

The Impact of Strategic Characteristics, and Market Popential on Born Global Firms’ Choice of Entry Mode

Entry modes are regarded as central aspect of international business. They represent one aspect of the firms international strategy, and at times can have a substantial impact on different aspects of the strategy. They are even more crucial to young and inexperienced firms entering the international arena, such as Born Global (BG) firms.