Abstract
Israel as a formal State is a new country, but its influence as an economically dynamic partner worldwide is undeniable despite the poorness of its natural resources and the war.
At the start, its population was 806 000 in 1948 but it has been estimated in 2003 to be more than 6.5 million people, composed by 81% of Jews, 16.7% of Arabic Muslims, 1.1% Arabic Christians and 1.2% of Druses. Actually, since its creation, a lot of immigrants came to live in Israel and especially in the 90's with a large number of Russians Jews (more than 1 million). Its population is therefore very multicultural.
The economy of Israel has changed incredibly in the past 20 years: even though the Israeli-Palestinian conflict has been a major issue, Israel managed to become a rich, advanced and technological country, as it was before simply an emerging country in terms of economical development. This change has been possible because the State has a very high qualified population and has concentrated its attention on developing new technologies.
But Israel remains a mix between tradition and modernity and this specificity tends to reflect on the management. The issues are numerous and complex: how does Israel deal with internationalization and globalization? What is the traditional management and what kind of changes does it have to initiate to face this globalization, to promote exports and play a major role on the international scene?
We will first expose below how tradition does influence the Israeli business and then the changes that have been initiated at several degrees for the Israeli business to stay competitive and efficient.
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