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Silicon Valley Acceleration Center - a case study of the first Polish


governmental “bridge organization”

Article · August 2013

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Pawel Pietrasienski
Warsaw School of Economics
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Paweł Pietrasieński
Warsaw School of Economics

Silicon Valley Acceleration Center - a case study


of the first Polish governmental “bridge organization”

1. Introduction to the concept of a “bridge organization”


Promoting national exports is a top priority of the majority of governments, mainly
because exports provide the means to increase domestic employment opportunities, generate
foreign exchange to finance imports, enrich public funds with additional tax revenues as well
as achieve higher economic growth and living standards [Archer, Maser, 1989, p. 236-237].
Studies also show that national export-promotion assistance helps increase or complement
management knowledge and experience [Singer, Czinkota, 1994, p. 55], which are of the
utmost importance in internationalization processes of companies, especially those young and
small, including start-ups and micro-companies. Thus, the government can be a “change
agent” whose assistance facilitates the adoption of more proactive, systematic, and planned
approach in entering foreign markets, especially the most competitive ones, like the
innovative eco-system of Silicon Valley.
Because of the obvious lack of export knowledge in companies starting their
internationalization processes, governments within their export-promotion programs offer
them several educational schemes, such as training seminars, assistance with export
procedures, but also mentoring and counseling services that help companies to resolve
problems which occur on foreign markets. In addition, various trade mobility programs, such
as trade shows, foreign trade missions, and the support provided by the trade offices abroad,
such as recently introduced by some governments acceleration programs, can help companies
perform their activities on foreign markets more effectively [Shamsuddoha, Ali, 2006, p. 95-
97]. However, given the increasing diversity, complexity, and turbulence of business
environment, national export-promotion assistance must be attractive, flexible, and
individually designed to effectively accommodate the changing needs of exporting companies
[Leonidou, Palihawadana, Theodosiou, 2011, p. 21], especially those coming from the most
demanding high technology sectors.

1
Therefore, establishing a new organization with its programs designed to support
young Polish technology companies in entering the Silicon Valley’s business environment
should take into account their unique needs and requirements. One of the useful methods
would be to make a comparative study between different countries’ export support
organizations based in Silicon Valley as well as acceleration programs offered by them.
The problem is that there are no two identical foreign governmental business
supporting organizations in the Silicon Valley entrepreneurial eco-system. Founded by
foreign governments so called “bridge organizations” (BOs) have different goals, available
resources, organizational structures and - as a result – different support programs. Each of
those organizations represents countries with different business culture or governmental
architecture, including the national support system for companies’ internationalization
processes.
On the other hand, some similarities can be found among governmental organizations,
bridging their respective national economies with the Silicon Valley’s resources. The most
common features of BOs include [Trondsen, 2010, p. 68-69]:
 supporting young technology companies/start-ups to successfully enter US and global
markets through Silicon Valley (by offering a wide variety of programs strengthening
marketing competences of entering companies, like mentoring, finding right business
partners, advising in legal, financial, but also accommodation and logistic issues;
those BOs’ services can be free, partially paid, or fully paid, depending on the support
model functioning in the home country);
 promoting and showcasing home country as a technology/innovation hub (by
organizing dedicated promotional projects, but often also as a part of social-
networking events that may include presentations by companies’ or government’s
representatives);
 advising and assisting the home country companies in accessing Silicon Valley eco-
system (by building strong networks of contacts including SV incubators and
accelerators, and associated mentors, as well as by developing relationships with
academia and leading technology companies based in greater San Francisco Bay
Area);
 transferring valuable knowledge from SV to the home country (by analyzing trends
and market signals, rapid technology changes in particular, but also very valuable
early signals of change from producers/service providers as well as end-users; this

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feature requires employing high-quality human resources on analytical part of BO’s
activity);
 matchmaking companies and institutions (by identifying best suited partners in
Silicon Valley for home country’s business, governmental and non-profit entities;
some BOs, like the Innovation Center Denmark are more focused in matchmaking
academic and research institutions; other, like FinNode or Innovation Norway are
more engaged in finding business partners, emphasizing the introductory meeting of
innovative start-ups from their countries with state-of-the-art technology corporations
from California);
 cooperation with networking organizations, including professional, but also expatriate
ones (like Siliconvikings, German American Business Association or US-Polish
Trade Council, which also provide different types of support services for local
members, but also companies coming from their origin countries).

Referring to the most common features of governmental bridge organizations, as well


as to the goal of this article, author predicts that the fully explored potential benefits of the
newly established acceleration office in Silicon Valley should result in a variety of
advantages, which are presented on the figure 1.

3
Figure 1.
Predicted benefits of the Polish governmental “bridge organization” in Silicon Valley

Source: own

Having in mind the enumerated features of the governmental organization as well as


predicted benefits associated with its activities, the goal of this paper is to investigate how to
further develop the first Polish “bridge organization”, based on recently established the
Silicon Valley Acceleration Center (SVAC), as a joint project of the Ministry of Economy
and its Trade and Investment Section of the Polish Embassy in Washington D.C. 1

1
The Silicon Valley Acceleration Center started in January 2013 at a non-profit US Market Access in San Jose,
California and in cooperation with the Rocket Space accelerator in San Francisco, after a competitive selection
procedure.

4
2. Rise of the acceleration programs offered by governments in Silicon Valley
The variety of acceleration programs offered by governmental BOs to their respective
domestic companies constitutes one of the key differences between those organizations in
Silicon Valley. Accelerator programs have a number of distinctive features that set them apart
from existing incubators and other government programs supporting young technology
enterprises [Miller, Bound, 2011, p. 9-10].
Having in mind that the “bridge organization” target group is always limited to
domestic companies, there are many variations between governmental programs offered in
the larger San Francisco Bay Area. According to the author’s research undertaken within the
Polish Presidency (July-December 2011), in cooperation with the European Union
Delegation in Washington D.C., within the framework of the EU Trade Counselor Working
Group – business acceleration programs offered by EU Member States’ agencies based in
Silicon Valley were described by the EU Trade Counselors as one of the best methods of the
European companies’ promotion on the US market [Pietrasieński, 2013, p. 1-22].
The information provided by Counselors in the above mentioned survey showed that
in the wide range of implemented programs there are a few mainstream tendencies which
could be group into features as follows:
1) The most popular form of providing business acceleration support in the US
market are Member States’ partnerships with business support institutions in
Silicon Valley (Plug & Play Tech Center2 and US Mac Access Center3 were
mentioned by more than half Member States). To date 14 EU countries has decided to
introduce 16 acceleration programs prepared in partnerships with those organizations.

2
Plug & Play Tech Center (P&P) is a profit model of incubator and business accelerator which features a high
number of European companies, in most cases sponsored by Member States from various EU programs. P&P is
headquartered in Sunnyvale, California; its global network includes 300+ tech startups, 180+ investors and a
community of leading universities and corporate partners. P&P has now expanding its model internationally,
having set up a satellite operation in Vancouver, Canada, and with plans for five centers, including Singapore,
the Middle East, and Europe. The major difference of the P&P model - comparing to US Mac - is for profit
concept, relying on venture capital entity (in that case – Amidzad Partners), which manages the P&P operations.
It currently works with 6 EU MS: Austria (Austrian Trade Commission), Belgium (Flanders Investment and
Trade and IBBT), Czech Republic (CzechInvest), Greece (Ministry of Education), Portugal (Leadership
Business Consulting) and Spain (Barcelona Chamber of Commerce and Barcelona Activa)
3
The US Market Access Center, based in San Jose, Menlo Park and San Francisco is a unique example of an
incubator which works exclusively with non-US companies and helps entrepreneurs to start up their businesses
and then go global. It is a non-profit which receives financial support from public and private entities and
charges governments and companies for mentoring and consulting services. They stress the importance of
mentorship and have developed a business model for market entry which incubates the companies and prepares
them to access the global marketplace. It hosts “soft landing zones” for Czech Republic, Catalonia, Ireland, and
recently for Poland as well as organizes Start-Up Camps in Denmark, Estonia, France, Hungary, Netherlands,
Italy, Spain and Sweden (a technology boot-camp in Poland is planned in the first quarter of 2014).

5
Recently, the National Business Incubation Association has again awarded the NBIA Soft Landings
International Incubator designation4 to the US Market Access Center in San Jose. This was the US
Market Access Center’s third renewal of the designation they first received in 2006. Through its Soft
Landings program, NBIA recognizes business acceleration programs that are especially capable of
helping nondomestic companies enter the incubator’s domestic market. According to the NBIA business
acceleration programs like the US Market Access Center catalyze the process of starting and growing
companies by providing entrepreneurs with the expertise, networks and tools they need to make their
ventures successful. Incubating nondomestic firms takes more than the standard set of incubation
services, however. The US Mac accentuates its standard business acceleration services with programs
tailored specifically to nondomestic companies, including market research assistance, corporate
finance advisory services, and full market entry review to assess and validate a company’s potential in
the U.S. market.

2) The size of the resources’ engagement into Silicon Valley operations mostly
determines the offer of acceleration programs designed for domestic start-ups. In
general, those countries whose governments decide to use limited resources decide to
offer their programs in partnership with local business support institutions. On the
other hand, a decision on designing an independent acceleration program, to promote
home country businesses in Silicon Valley, requires the involvement of far larger
financial and human resources – in the latter mostly based on local specialists. Those
specialists can be relatively expensive in the greater San Francisco Bay Area (in
comparison to other technology hubs in the United States and abroad). Therefore,
building an independent business support institution, including acceleration functions,
will have to result in greater involvement of governmental resources, comparing to
the partnerships with specialized local incubators and accelerators.
3) An application process for acceleration programs should be open and
competitive. Most programs, including those provided by governments, have web-
based application processes and are highly selective, using expert judgment to choose
the most promising companies. Usually start-ups are asked to fulfill the provided

4
NBIA’s Soft Landings designations are effective for two years; programs must reapply biennially for
continuing designation. There is no cap on the number of designations available in a given year or over time.
The US Market Access Center is among the 24 business incubation programs from around the world that have
earned the designation since NBIA began the program in 2005.
The National Business Incubation Association is the world’s leading organization advancing business
incubation and entrepreneurship support (www.nbia.org/member_services/soft_landings).

6
questionnaire and submit a short presentation. Sometimes, to complete selection
procedure, there is also a requirement of videoconferencing with local mentors.
4) The most effective acceleration programs offered by foreign governments have a
multiphase structure. In author’s opinion, governmental support should be based on
the advanced support programs designed for the competitively selected enterprises
and built on the multi-phase approach, starting from, so called, “technology boot-
camp”, organized domestically and finalizing with its business acceleration stage on
the US market, in this case, in Silicon Valley. One of the most advance governmental
support programs offered to foreign companies in Silicon Valley is the FinPro’s 4-
stage Gazelle5.
5) Every acceleration program has to be based on high quality mentors. The depth
and quality of mentoring determines the effectiveness of the whole program. This is
why partnering with experienced local business support institutions, like already
mentioned US MAC and Plug&Play, can ensure that group of mentors assigned to the
government’s programs is of the highest possible quality. It is also worth to remember
that attracting the best Silicon Valley mentors requires admitting to the program those
companies which have the highest possible chance to achieve a market success.
Therefore, this is up to governments to ensure that the selection process will result in
choosing the high quality domestic start-ups.

3. “10-days for START” as an example of the acceleration program offered by the


“bridge organization”
The pilot program, launched by the Silicon Valley Acceleration Center, is addressed
to Polish companies from the new technologies’ sectors, including IT/ICT (hardware,
software), clean-tech, bio-tech and medical devices, interested in expansion in the U.S.

5
Designed for both Finnish start-ups and Born Global companies, each Finpro Gazelle is a 4-stage program for
testing and developing business ideas in promising target markets. Its four stages are: (1) Bootcamp, (2)
Discovery Tour, (3) Preparation and (4) Acceleration, which aims to:
• Highlight each company's capabilities and assess areas in each participants offering and value proposition that
require development in the Bootcamp;
• Ensure that companies are familiar with local aspects of each business environment by a 7-day Discovery Tour
in the target country. Discovery Tours are intended to create relationships required to start up international
business;
• Prepare your company's business for entry into the target market. Finpro helps check the pitch for customers,
partners and possible financiers. The Preparation stage aims to check and define value propositions, value chains
and business models;
• Local acceleration to ensure the company is familiar with the real business environment during one month
Acceleration stage present in the target country.

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market and globally. "10-days for START" is done in cooperation with distinct accelerators
such as: US Market Access Center and Rocket Space as well as partners gathered around the
acceleration office.
During the program companies will have an opportunity to learn the latest market
trends, establish business contacts with representatives of technology companies and
institutions operating in Silicon Valley, as well as start-ups from other countries. Participating
companies gain the knowledge about the Silicon Valley innovation ecosystem, verify their
concepts and business model, as well as establish contacts with American partners, allowing
them to continue cooperation after the end of the program. It is worth to add that more than
half of the program graduates visit Silicon Valley again, using the contacts established during
the "10-days for START".
The benefits of participation in the program include:
1) gaining the knowledge about business culture in Silicon Valley;
2) verification of the marketing concept and business model;
3) preparation of the so-called “pitching session”, presented in front of potential
investors;
4) acquiring the knowledge of the latest technological trends, and
5) establishing important business contacts, including representatives of Venture Capital,
business angels as well as potential corporate investors.

Under the "10-days for START", the company will have the opportunity to participate
in intensive training sessions, individual sessions with mentors, meetings with experts and
networking events organized by the Trade and Investment Section’s acceleration office in
Silicon Valley. In addition, office space and necessary infrastructure including services
(Internet, office equipment, conference room) are available and free of charge for Polish
companies chosen in the selection process. The selection process (presented on the figure 2)
involves experts from Silicon Valley, what ensures that the whole procedure is based on
independent, professional reviews. The program has been built on multi-phase approach to
ensure that only carefully selected and well–prepared companies will take part in 10-days
acceleration program in the United States, implemented by the first Polish “bridge
organization”, in cooperation with the US Market Access Center.
Therefore, an approach based on the assumption that the intensity of public support
grows as the companies are being selected to more advanced stages of the program, should be

8
viewed by foreign governments as a “good practice” in supporting their young technology
companies in the internationalization processes.

Figure 2.
The multiphase process of "10-days for START" acceleration program

"10-days for START"


promotion in Poland

Pre-selection process

Application assessment

Skype-call between Polish


companies and US mentors

Selection of companies to
participate in the program

Implementation of the
program in Silicon Valley

Customer Satisfaction
Management (CSM)

Post-program participants
promotion

Source: own

4. Recommendations for further development of the Polish governmental “bridge


organization” in Silicon Valley
It was proven, that - in terms of entrepreneurial ecosystem - Silicon Valley has very
unique combination of leading technology corporations, world-class universities and research
organizations, vibrant social and professional networks as well as high density of business
support institutions, especially those specializing in young technology companies’ mentoring
and market launching. Therefore, the Polish “bridge” project has begun on expanding the
capabilities of the Trade and Investment Section of Polish Embassy in Washington D.C. by
opening the Silicon Valley Acceleration Center, located in one of the leading SV business
support institutions – the US Market Access Center, based in San Jose and Menlo Park, with
partner accelerator Rocket Space from San Francisco.

9
In regards to the paper’s goal, in author’s opinion a further development of the Polish
governmental entity in Silicon Valley requires expanding of collaborative relations with
experienced bridge organizations, like those representing Nordic countries
(FinNode/FinPro/Tekes – presented in the box below, Innovation Center Denmark, or
Innovation Norway), Asian states (Japan External Trade Organization – JETRO; Korea
Institute of Industrial Technology - KITECH, or Industrial Technology Research Institute -
ITRI), but also with Eastern and Central European representative offices like CzechInvest or
Enterprise Estonia.
Finnish governmental agencies represent a multi-purpose approach, combining - in their stand-alone office in
Santa Clara - the features of business support institution (FinNode/Finpro) with science and research activities
(Tekes)6. FinNode USA, being an umbrella organization – has four main partners: Finpro, Tekes, the Ministry
of Employment and Economy, and the Ministry of Foreign Affairs. Interestingly, till 2007 two Finish agencies
(Finpro and Tekes) had been in Silicon Valley for many years, but operating separately. Then they established
joint office under the FinNode brand, which have contributed to greater cooperation between incubation
(technologies) and acceleration (products and services) processes on the US market. Although having a stand-
alone office, they have entered in several partnerships with local business support institutions. These
partnerships have made FinNode a very unique example of outsourcing many acceleration services to local
entities (by placing Finish companies in carefully selected “soft landing zones”).

The collaborative sphere of relations of the newly established Silicon Valley


Acceleration Center should also be based on contacts with renowned academic and research
institutions based in San Francisco Bay area, like Stanford University (with students being
the founders of Cisco, Yahoo, or HP), University of California – Berkeley, or Electric Power
Research Institute, among others. It needs to be emphasized that the high intensity of contacts
between academia and start-up society has created a unique environment for close
cooperation, which resulted in many very successful business projects jointly managed by
risk-taking young entrepreneurs, students, and faculty members.
In addition, on-site networking organizations, like Silicon Vikings, German American
Business Association as well as US-Polish Trade Council are very good examples of
networks that grew from a local activity among the expatriate communities into networks
with an own structure, that provide - or make accessible - tangible services for members and
newcomers [Anselmo, Cascio, 2012, p. 18-19]. Silicon Vikings is a non-profit member
organization for networking and promotion of technologies and businesses intersecting

6
http://www.finpro.fi/web/english-pages/

10
Silicon Valley (San Francisco Bay Area) and the Nordic region (Denmark, Estonia, Finland,
Iceland, Norway, and Sweden). They connect the Nordic Region's and Silicon Valley's
innovation and start-up ecosystems through technology and business driven events, activities
and projects for the last 15 years7. German American Business Association (GABA) is a 10-
years old non-profit, member-driven organization that fosters transatlantic knowledge-sharing
and networking among German-American and Californian business and tech communities8.
The US-Polish Trade Council (USPTC) was formed in 2002 to promote California, and
especially the Silicon Valley, as a prime location for Polish high technology and science to
build a presence and so increase cooperation and trade between the U.S. and Poland9.
Therefore, the Polish governmental “bridge organization” should interact with all
three networks, but – in parallel – should also focus on building new networks (indicated on
Figure 3 by dotted line), e.g. integrating Poles and Polish Americans holding executive
positions in technology corporations based in Silicon Valley, but also building a professional
network sourcing from Central and Eastern European diplomatic and business contacts.
One of the major tasks of the bridge organization, especially in its development stage,
is to establish formal types of cooperation with global technology corporations. Because the
Polish Ministry of Economy has recently launched a program “Technology Foresight -
InSight2030”, which identified 10 major research fields and 99 domestic technologies to be
promoted on global markets till the year 2030, the Trade and Investment Section of Polish
Embassy in Washington, DC has started the program “InSight into Silicon Valley”, with its
first 2013 edition called “Tech-Match Poland”, based on matchmaking the needs of leading
US corporations with state-of-the-art technological solutions provided by Polish companies.
Following the author’s recommendations, this multi-phase program will bridge Poland’s
high-tech eco-system with financial and knowledge resources of Silicon Valley.

Author’s view on further development of collaborative and networking relations of


the first Polish governmental “bridge organization” is presented on the figure nr 3.

7
http://siliconvikings.com/
8
http://www.gaba-network.org/
9
http://www.usptc.org/

11
Figure 3.
Governing, collaborative and networking relations of the Silicon Valley Acceleration Center

NETWORKING GOVERNANCE COLLABORATION

Network of Poles Bridge organizations:


and Polish Americans
holding executive Polish Ministry FinNode, Innovation
Center Denmark,
positions in technology of Economy Swissnex, Enterprise
corporations based Ireland, Innovation
in Silicon Valley Trade and Investment Norway, Japan External
Trade Organization
Section of the Polish Embassy
(JETRO), Korea Institute
in Washington D.C. of Industrial Technology
(KITECH), Industrial
US-Polish Technology Research
Trade Council Institute (ITRI),
US -Poland CzechInvest, Enterprise
Innovation Hub Estonia, ACC10-
Competitiveness for
Catalonia, and others

Professional
networking Embassy of Poland
organizations in Washington D.C.
POLAND'S SILICON VALLEY
like Silicon Vickings and
(the biggest,
ACCELERATION CENTER Polish Consulate
independent network General in Los Angeles
in Silicon Valley
for nordic countries)

State-of-the-art
academic and research
Cooperation with institution, like Stanford
global technology University, University of
corporations within US Market Rocket California - Berkeley, or
such programs like Access Center Space Electric Power Research
in San
"InSight 2030 into in Merlo Place Institute - EPRI
Francisco
Silicon Valley/Tech- and San Jose
Match Poland" the United States
Department
of Commerce
U.S. Export Assistance
Diplomatic and Center in San Francisco
business network in SV
sourcing from Central
and Eastern European Other business support European Union
countries as well as institutions including Delegation
the Baltic Sea region in Washington D.C.
“soft-landing zones”

Source: own

Final remarks
It needs to be underlined that public organizations can be the agents of change in
supporting internationalization processes of their domestic companies, in the analyzed case -
for those entering the most competitive technology markets, like the innovative eco-system of

12
Silicon Valley. Therefore, establishing a new organization with its programs designed to
support young Polish technology companies in entering the Silicon Valley’s business
environment should be a priority.
Having in mind the identified most common features of the specialized support
organization as well as predicted benefits associated with its activities, the goal of this paper
was to investigate how to further develop the first Polish “bridge organization”, based on
recently established the Silicon Valley Acceleration Center, as a joint project of the Ministry
of Economy and its Trade and Investment Section of the Polish Embassy in Washington D.C.
Following the author’s research undertaken within the Polish Presidency, in cooperation with
the European Union Delegation in Washington D.C., where the business acceleration
programs offered by EU Member States’ agencies were viewed as “good practices”, the
mainstream tendencies in offering acceleration programs were characterized. To complement
the analysis, the pilot acceleration program “10-days for START” was presented. Finally,
several recommendations for further development of the Polish first governmental “bridge
organization” were proposed, with special emphasis on expanding the collaborative and
networking relations in Silicon Valley.
But the question on further development of Poland’s presence in Silicon Valley
remains open. The first Polish “bridge organization” – in comparison with the leading
governmental organizations which operate in that area, like mentioned in this article those
representing Nordic countries, appears to be less resourced in the key areas of business
support and technology development. Author believes that Poland needs and would benefit
significantly from expanding its institutional footprint in the world’s most innovative eco-
system. Besides supporting young Polish technology companies to successfully enter US and
global markets through Silicon Valley, mostly by offering comprehensive, multiphase
acceleration programs, there is an urgent need to promote and showcase Poland as a regional
technology and innovation hub. To achieve such a goal effective channels of transferring
valuable knowledge from SV to our home country should be established. This would require
not only employing high-quality human resources, but also anchoring the newly established
Silicon Valley Acceleration Center with major Polish institutions responsible for research,
development and innovation (R+D+I).
In author’s opinion, the Finnish example of an umbrella “bridge organization”
(FinNode), representing multipurpose approach, combing the features of business support
institutions (FinPro) with science and research activities (Tekes), should be considered as a

13
recommended model for designing the further engagement of Polish governmental
institutions in the greater San Francisco Bay area.

Bibliography:
1. Archer, S., Maser, S., State Export Promotion for Economic Development, Economic
Development Quarterly, 1989, nr 3.
2. Di Anselmo, A., Lo Cascio, L., Innovation Bridges between Silicon Valley and
Europe, Input paper for the EU delegation visit to Silicon Valley, European
Commission, May 2012.
3. Leonidou, L., Palihawadana, D., Theodosiou, M., National Export Promotion
Programs as Drivers of Organizational Resources and Capabilities: Effects on
Strategy, Competitive Advantage, and Performance, Journal of International
Marketing, 2011, nr 2.
4. Miller, P., Bound, K., The Startup Factories – the rise of accelerator programs to
support new technology ventures, discussion paper, NESTA, London, June 2011.
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the EU Member States on the United States market, Results of the research
undertaken within the Polish Presidency (July-December 2011), in cooperation with
the European Union Delegation in Washington D.C., within the framework of the EU
Trade Counselor Working Group, non-paper, Washington, D.C., February 2013.
6. Shamsuddoha, A., Ali, M., Mediated Effects of Export Promotion Programs on Firm
Export Performance, Asia Pacific Journal of Marketing and Logistics, 2006, nr 2.
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Journal of International Marketing, 1994, nr 2.
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Recommendations, Strategic Business Insights, Menlo Park, Kalifornia, 2010.

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