Improving SME Performance Globally
Edited by Pervez N. Ghauri and V. H. Manek Kirpalani
Chapter 3: The influence of market intelligence and marketing mix adaptation efforts on the performance of Israeli born globals
AbstractMuch of born global research focuses on early stages of the international new venture creation process, as well as on the motivations and drivers for its creation. However, the current chapter presents a study seeking to contribute to the understanding of born globals’ post-establishment performance. More specifically, the chapter presents a study examining the effects of their localization strategy choices and market intelligence gathering efforts on their performance. This is done through an analysis of survey data collected from 69 Israeli born global firms during 2012–13. The study reveals that localization efforts with respect to sales force management significantly impacts born globals’ performance. However, localization efforts with respect to product, price and promotions do not affect their performance. In addition, the study also shows that market intelligence generation efforts also have a significant impact. Finally, globals’ maturity level, as captured by three company age groups, did not affect their performance. Accordingly, the study contributes in shifting research focus to born globals’ performance, while highlighting the importance of marketing research and localization of sales force management for enhancing their performance. Moreover, by examining the relevance of marketing localization strategies for born globals, the current study also extends our understanding of their marketing practices. The chapter concludes with acknowledged limitations and suggested implications for future research and practice.
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