6533b7d0fe1ef96bd125a19e

RESEARCH PRODUCT

Investment and Control Decisions in Foreign Markets: Evidence from Service Industries

Anoop MadhokJosé Pla-barberEsther Sanchez-peinado

subject

business.industryStrategy and Managementmedia_common.quotation_subjectControl (management)Sample (statistics)Investment (macroeconomics)General Business Management and AccountingInternationalizationManagement of Technology and InnovationService (economics)EconomicsCapital intensityMarketingbusinessMode choiceTertiary sector of the economyIndustrial organizationmedia_common

description

We empirically investigate the entry mode choice in the service sector. In contrast to current models, we propose a model for choice of entry mode that breaks down the decision into two levels of analysis: first, at the more macro level, the choice of the degree of commitment is influenced mainly by country-related variables; second, at the more micro level, the choice of the degree of control is addressed by firm-related variables. Based on a sample of 328 foreign market entries, our study contributes to the literature of entry mode in two ways: first, by showing the explanatory capacity of the hierarchical model in the analysis of entry mode choice in the service sector; and second, through identifying and analysing the moderating role of two important contingencies in this decision – capital intensity and degree of customization. Moreover, the study advances our knowledge of some of the particularities in the internationalization of service firms.

https://doi.org/10.1111/j.1467-8551.2010.00698.x