Abstract
Globalization has created countless opportunities for the internationalization of a wide range of services. Recent technological innovations associated with the reduction or elimination of trade barriers, resulted in an exponential expansion of service firms. This paper analyzes the internal and external factors that influence the decision to operate internationally. The hypotheses are empirically examined through a survey sent to 322 firms from the design, architecture and engineering sector. Multivariate analysis is used to ascertain the main determinants of internationalization in these firms.
The findings indicate that the main reasons underlying the internationalization of these service firms are the size of the firm, the competitive environment and the staff’s degree of international experience. These factors, which influence the management’s attitudes toward operating internationally, determine the firm’s degree of internationalization. Moreover, firms that have a high number of senior managers with a graduate course and higher skills in foreign languages are more prone to internationalize. Some practical implications are presented for service firms that are in the process of internationalizing.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
OCDE: Annual Report. Paris: The Organisation for Economic Cooperation and Development (2005)
Gerbrands, G.: Internationalization of service organizations: a study of the factors that influence the internationalization of service organizations. PhD Thesis, University of Twente, Nederlands (2008)
Lejpras, A.: Determinants of internationalization: differences between service and manufacturing SMEs. Deutsches Institut für Wirtschaftsforschung, Paper N. 886 (2009)
Patterson, P.G.: A Study of Perceptions Regarding Service Firms’ Attitudes Towards Exporting. Australasian Mark. J. 12(2), 19–38 (2004)
Javalgi, R.G., Martin, C.L.: Internationalization of services: identifying the building block for future research. J. Services Mark. 21(6), 391–397 (2007)
Depreya, B., Lloyd-Reasona, L., Ibehb, K.I.N.: The internationalisation of small-and medium-sized management consultancies: an exploratory study of key facilitating factors. Service Industries J. 32(10), 1–13 (2011)
Krull, E., Smith, P., Ge, G.L.: The internationalization of engineering consulting from a strategy tripod perspective. Service Industries J. 32(7), 1097–1119 (2012)
Lovelock, C.H., Yip, G.S.: Developing Global Strategies for Service Businesses. California Manage. Rev. 38(2), 64–86 (1996)
Bateson, J.E.G., Hoffman, D.K.: Marketing de serviços, 4th edn. Porto Alegre, Bookman (2001)
Grönroos, C.: Internationalization strategies for services. J. Service Mark. 13(4/5), 290–297 (1999)
Brouthers, K.D., Brouthers, L.E.: Why service and manufacturing entry mode choices differ: the influence of transaction cost factors, risk and trust. J. Manage. Stud. 40, 1179–1204 (2003)
Agarwal, S., Ramaswami, S.N.: Choice of foreign market entry mode: impact of ownership, location and internationalization factors. J. Int. Bus. Stud. 23(1), 1–27 (1992)
Elango, B., Abel, I.: A comparative analysis of the influence of country characteristics on service investments versus manufacturing investments. Americ. Bus. Rev. 22(2), 29 (2004)
O’Farrell, P.N., Wood, P.A., Zheng, J.: Regional influences on foreign market development by business service companies: elements of a strategic context explanation. Regional Stud. 32(1), 31–48 (1998)
Javalgi, R.G., Griffith, D.A., White, D.S.: An empirical examination of factors influencing the internationalization of service firms. J. Services Mark. 17(2), 185–201 (2003)
Erramilli, M.K.: Entry mode choice in service industries. Int. Mark. Rev. 5(7), 50–62 (1990)
Blomstermo, A., Sharma, D.: Choice of foreign market entry mode in service firms. Int. Mark. Rev. 23(2), 211–229 (2006)
Erramilli, M.K., Rao, C.P.: Service Firms’ International Entry-Mode Choice: A Modified Transaction-Cost Approach. J. Marketing 57(7), 19–38 (1993)
Rosenbaum, S.M., Madsen, T.K.: Modes of foreign entry for professional service firms in multi-partner projects. Service Industries J. 32(10), 1653–1666 (2012)
Philippe, J., Léo, P.Y.: Influence of entry modes and relationship modes on business services internationalisation. Service Industries J. 31(4) (2011)
Carneiro, J., Dib, L.A.: Avaliação comparativa do escopo descritivo e explanatório dos principais modelos de internacionalização de empresas. INTERNEXT - Revista Electrónica de Negócios Internacionais da ESPM 2(1), 1–25 (2007)
Dunning, J.H.: Toward an eclectic theory of international production: Some empirical tests. J. Int. Bus. Stud. 11(1), 9–31 (1980)
Dunning, J.H.: The eclectic paradigm of international production: A restatement and some possible extensions. J. Int. Bus. Stud. 19(1), 1–31 (1988)
Dunning, J.H.: Reappraising the eclectic paradigm in an age of alliance capitalism. J. Int. Bus. Stud. 26(3), 91–461 (1995)
Johanson, J., Vahlne, J.-E.: The internationalization process of the firm - A model of knowledge development and increasing foreign market commitments. J. Int. Bus. Stud. 8, 23–32 (1977)
Johanson, J., Vahlne, J.E.: The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. J. Int. Bus. Stud. 40(9), 1411–1431 (2009)
Andersen, O.: On the internationalization process of firms: A critical analysis. J. Int. Bus. Stud. 24(3), 209–231 (1993)
Cunningham, M.T., Culligan, K.: Competitiveness through networks of relationships in information technology product markets. In: Paliwoda, S.J. (ed.) New Perspectives on International Marketing. Routledge, London (1991)
Johanson, J., Mattsson, L.-G.: Network positions and strategic action - an analytical framework. In: Axelsson, B., Easton, G. (eds.) Industrial Networks. A New View of Reality, pp. 206–217. Routledge, London (1992)
Bell, J.: The internationalization of small computer software firms: A further challenge to stage’ theories. European J. Mark. 8, 60–75 (1995)
Bjorkman, I., Forsgren, M.: Nordic international business research: a review of its development. Int. Stud. Manage. Organization 30(1), 6–25 (2000)
Andersson, U., Forsgren, M., Holm, U.: The strategic impact of external networks: subsidiary performance and competence development in multinational corporation. Strategic Manage. J. 23(11), 979–996 (2002)
Lee, M., Stanley, Y.W.S., Lam, H.: Event and rule services for achieving a Web-based knowledge network. Knowledge-Based Systems 17, 179–188 (2004)
Balbinot, Z., Graeml, A.R., Macada, A.A.: A internet e a estratégia de internacionalização das empresas Brasileira. BASE – Revista de Administração e Contabilidade da Unisinos 5(3), 188–197 (2008)
Kim, W.C., Hwang, P.: Global strategy and multinationals entry mode choice. J. Int. Bus. Stud. 23(1), 29–53 (1992)
Wernerfelt, B.A.: Resource-Based View of the Firm. Strategic Manage. J. 5(2), 171–180 (1994)
Barney, J.: Firm resources and sustained competitive advantage. J. Manage. 17(1), 99–120 (1991)
Barney, J.: Gaining and sustaining competitive advantage, 2nd edn. Prentice Hall, Upper Saddle River (2002)
Ruzzier, M., Hisrich, R.D., Antoncic, B.: SME internationalization research: past, present, and future. J. Small Bus. Enterprise Development 13(4), 476–497 (2006)
Barney, J.B., Hesterly, W.S.: Administração Estratégica e Vantagem Competitiva Casos brasileiros. Pearson Education, São Paulo (2007)
Coviello, N.E., McAuley, A.: Internationalisation and the smaller firm: A review of contemporary empirical research. Manage. Int. Rev. 39(3), 223–256 (1999)
Wickramasekera, R.G., Oczkowski, E.: Stage models re-visited: a measure of the stage of internationalisation of a firm. Manage. Int. Rev. 46(1), 39–55 (2006)
Ghoshal, S.C.A., Barlett, M.P.: A new manifesto for management. Sloan Manage. Rev. 40(3), 41–54 (1999)
Castellacci, F.: The internationalization of firms in the service industries: Channels, determinants and sectoral patterns. Technological Forecasting & Social Change 77(3), 500–513 (2010)
Hassel, A., Höpner, M., Kurdelbusch, A., Rehder, B., Zugehör, R.: Two Dimensions of the Internationalization of Firms. J. Manage. Stud. 40(3), 705–723 (2003)
Lommelen, T., Matthyssens, P.: The internationalization process of service providers: a literature review. Research on Int. Service Mark.: A State of the Art 15, 95–117 (2005)
Coviello, N.E., Martin, K.: Internationalization of service SMEs: an integrated perspective from the engineering consulting sector. J. Int. Mark. 7(4), 42–66 (1999)
Zou, S., Fang, E., Zhao, S.: The effects of export marketing capabilities on export performance: An investigation of Chinese exporters. J. Int. Mark. 11(4), 32–55 (2003)
Samiee, S.: The internationalization of services: trends, obstacles and issues. J. Services Mark. 13(4/5), 319–336 (1999)
Guenzi, P., Pelloni, O.: The Impact of Interpersonal Relationships on Customer Satisfaction and Loyalty to the Service Provider. Int. J. Service Industry Manage. 15(4), 365–384 (2004)
Sichtmann, C., Selasinsky, V.M.: Exporting Services Successfully: Antecedents and Performance Implications of Customer Relationships. J. Int. Mark. 18(1), 86–108 (2010)
Aaby, N.E., Slater, S.: Management Influences on Export Performance: A Review of the Empirical Literature 1978-1988. Int. Mark. Rev. 6(4), 6–25 (1988)
Winsted, K.F., Patterson, P.G.: Internationalization of services: the service exporting decision. J. Services Mark. 12(4), 294–311 (1998)
Leonidou, L., Katsikeas, C.S., Piercy, N.F.: Identifying Managerial Influences on Exporting: Past Research and Future Directions. J. Int. Mark. 6(2), 74–102 (1998)
Burton, F.N., Schlegelmilch, B.B.: Profile analyses of non-exporters versus exporters grouped by export involvement. Int. Mark. Rev. 1(27), 38–49 (1987)
Sacramento, I., Almeida, V.M.C., Silva, M.S.M.: The Internationalization Process of Services Firms: A Two-Case Study in Brazil. Latin American Bus. Rev. 3(2), 43–64 (2002)
Yin, R.K.: Case study research–Design and methods, 2nd edn. SAGE Publications (1994)
Maroco, J.: Análise Estatística com o PASW Statistics. Editora Report Number (2010)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Moreira, M.R.A., Maia, M.A.S., Sousa, P.S.A., Meneses, R.F.C. (2013). Factors Influencing the Internationalization of Services Firms: The Case of Design, Engineering and Architecture Consulting Firms. In: Falcão e Cunha, J., Snene, M., Nóvoa, H. (eds) Exploring Services Science. IESS 2013. Lecture Notes in Business Information Processing, vol 143. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36356-6_18
Download citation
DOI: https://doi.org/10.1007/978-3-642-36356-6_18
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-36355-9
Online ISBN: 978-3-642-36356-6
eBook Packages: Computer ScienceComputer Science (R0)