Inseparability and customisation degree as determinants of service firms' internationalization

Authors

  • Sánchez Peinado Universidad de Valencia

DOI:

https://doi.org/10.1229/tecempresarialjournal.v18i2.301

Keywords:

Service characteristics, internationalisation, entry modes, control degree

Abstract

The vast majority of theoretical approaches in internationalisation have emerged from manufacturing sector and, thus, some explanations may not be true in the whole service sector. This paper analyses the importance of sector characteristics in the entry mode choice and shows that there are different behaviours patterns not only among the service and manufacturing sectors but also among service firms. In this paper, we propose two characteristics of services, inseparability and customisation degree, as key dimensions to classify services because of their importance in the international arena. From a cluster analysis in a sample of 113 Spanish service firms, this paper identifies four groups of services and it provides evidence about the existence of some differences in the entry mode choice patterns according to the nature of the group being analysed.

References

AGARWAL, S.; RAMASWAMI, S.N. (1992): «Choice of Foreign Market Entry Mode: Impact of

Ownership, Location and Internalization Factors». Journal of International Business Studies,

vol. 23, n.º 1, pp. 1-27.

ANDERSON, E.; GATIGNON, H. (1986): «Modes of foreign entry: a transaction cost analysis

and propositions». Journal of International Business Studies, vol. 17, n.º 3, pp. 1-26.

AULAKH, P.S.; KOTABE, M. (1997): «Antecedents and performance implications of channel

integration in foreign markets». Journal of International Business Studies, vol. 28, n.º 1, pp. 145-175.

BHAGWATI, J.N. (1984): «Splintering and Disembodiment of services and developing countries».

The World Economy, vol. 7, n.º 2, pp. 133-144.

BHARADWAJ, S.G.; VARADARAJAN, P.R.; FAHY, J. (1993): «Sustainable competitive advantage

in service industries: a conceptual model and research propositions». Journal of Marketing,

vol. 57, n.º 4, Octubre, pp. 83-99.

BODDEWYN, J.J.; HALBRICH, M.B.; PERRY, A.C. (1986): «Service Multinationals: Conceptualization,

Measurement and Theory». Journal of International Business Studies, vol. 17, n.º 3, pp. 41-57.

BROUTHERS, K.D. (2002): «Institutional, cultural and transaction cost influences on entry mode

choice and performance». Journal of International Business Studies, vol. 33, n.º 2, pp. 203-221.

BROUTHERS, L.E.; BROUTHERS, K.D.; WERNER, S. (1999): «Is Dunning’s Eclectic Framework

descriptive or normative?». Journal of International Business Studies, vol. 30, n.º 4, pp. 831-844.

BUCKLEY, P.J.; CASSON, M. (1976): The future of multinational enterprises. London: Macmillan.

CAMPBELL, A.J.; VERBEKE, A. (1994): «The Globalization of Service Multinationals». Long

Range Planning, vol. 27, n.º 2, pp. 95-102.

CARMAN, J.M.; LANGEARD, E. (1980): «Growth strategies for service firms». Strategic Management Journal, vol. 1, n.º 1, pp. 7-22.

CICIC, M.; PATTERSON, P.G.; SHOHAM, A. (1999): «A conceptual model of the internationalization of services firms». Journal of Global Marketing, vol. 12, n.º 3, pp. 81-106.

CLARK, T.; RAJARATNAM, D.; SMITH, T. (1996): «Toward a theory of international services:

marketing intangibles in a world of nations». Journal of International Marketing, vol. 4, n.º 2,

pp. 9-28.

DUNNING, J.H. (1973): «The determinants of International Production», Oxford Economic Papers,

vol. 25, n.º 3, noviembre, pp. 289-336.

ERRAMILLI, M.K. (1990): «Entry mode choice in service industries». International Marketing

Review, vol. 7, n.º 5, pp. 50-62.

ERRAMILLI, M.K.; Rao, C.P. (1993): «Service Firms’ International Entry-Mode Choice: A modified

Transaction-Cost Analysis Approach». Journal of Marketing, vol. 57, n.º 3, July, pp. 19-38.

GATIGNON, H.; ANDERSON, E. (1988): «The Multinational Corporation’s degree of control

over foreign subsidiaries: an empirical test of a Transaction Cost Explanation». Journal of

Law, Economics, and Organization, vol 4, n.º 2, pp. 305-336.

GRÖNROOS, C. (1999): «Internationalization strategies for services». Journal of Services Marketing,

vol. 13, n.º 4/5, pp. 290-297.

KNIGHT, G. (1999): «International services marketing: review of research, 1980-1998». Journal

of services marketing, vol. 13, n.º 4/5, pp. 347-360.

KOGUT, B.; SING, H. (1988): «The effect of national culture on the choice of entry mode». Journal

of International Business Studies, vol. 19, n.º 3, pp. 411-432.

KOGUT, B.; ZANDER, U. (1993): «Knowledge of the firm and the evolutionary theory of the

multinational corporation». Journal of International Business Studies, vol. 24, n.º 4, pp. 625-645.

LOVELOCK, C.H.; YIP, G.S. (1996): «Developing Global strategies for service business».

California Management Review, vol. 38, n.º 2, pp. 64-86.

MADHOK, A. (1998): «The nature of multinational firm boundaries: Transaction costs, firm capabilities and foreign market entry mode». International Business Review, vol. 7, n.º 3, pp. 259-290.

PALMER, A. (1995): Services marketing principles and practice. Prentice-Hall. Englewood

Cliffs. N.J.

PATTERSON, P.G.; CICIC, M. (1995): «A typology of service firms in international markets: an

empirical investigation». Journal of International Marketing, vol. 3, n.º 4, pp. 57-83.

SAMIEE, S. (1999): «The internationalization of services: trends, obstacles and issues». Journal of

Services Marketing, vol. 13, n.º 4/5, pp. 319-328.

SWARTZ, T.A.; BOWEN, D.E.; BROWN, S.W. (1992): «Fifteen years after breaking free: services

then, now and beyond», en Advances in Services Marketing and Management: Research and

Practice, vol. 1, Greenwich, CT: JAI, pp. 1-21.

VÄLIKANGAS, L.; LEHTINEN, U. (1994): «Strategic Types of Services and International Marketing». International Journal of Service Industry Management, vol. 5, n.º 2, pp. 72-84.

VANDERMERWE, S.; CHADWICK, M. (1989): «The Internationalisation of Services». The Service

Industries Journal, vol. 9, n.º 1, January, pp. 79-93.

VERNON, R. (1966): «International Investment and International Trade in the Product Cycle».

Quarterly Journal of Economics, vol. 80, n.º 1, pp. 190-207.

WILLIAMSON, O.E. (1975): Markets and Hierarchies: Analysis and Antitrust Implications. New

York: The Free Press.

WILLIAMSON, O.E. (1985): The Economics Institutions of Capitalism. New York: The Free

Press.

Published

2023-11-24

How to Cite

Sánchez Peinado. (2023). Inseparability and customisation degree as determinants of service firms’ internationalization. TEC EMPRESARIAL, 18(2), 809–824. https://doi.org/10.1229/tecempresarialjournal.v18i2.301