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The role of service embeddedness in the internationalisation process of manufacturing firms

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  • Jack, Robert
  • As-Saber, Sharif
  • Edwards, Ron
  • Buckley, Peter

Abstract

Over the last decade the growth of service firms, and their internationalisation, has attracted considerable attention from researchers, with a special focus on characteristics that distinguish services from goods. However, as the composition of a firm's product can contain both good and service elements, this paper argues that it is somewhat misleading to categorise a product simply as either a 'good' or a 'service'. Manufactured goods often contain client-related services embedded in them. Further, the nature of these embedded services may vary with respect to their degree of separability of production and consumption. Based on several case studies of Australian manufacturing subsidiaries in the UK, this paper examines the impact of inseparable embedded services on a firm's entry-mode choice. It reveals that the extent and nature of embedded services have a considerable impact on a firm's choice of foreign entry mode. The research findings are likely to contribute to the existing marketing and internationalisation literature.

Suggested Citation

  • Jack, Robert & As-Saber, Sharif & Edwards, Ron & Buckley, Peter, 2008. "The role of service embeddedness in the internationalisation process of manufacturing firms," International Business Review, Elsevier, vol. 17(4), pages 442-451, August.
    • Handle: RePEc:eee:iburev:v:17:y:2008:i:4:p:442-451
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    References listed on IDEAS

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    Cited by:

    1. Arvanitis, Spyros & Hollenstein, Heinz & Stucki, Tobias, 2016. "Does the explanatory power of the OLI approach differ among sectors and business functions? Evidence from firm-level data," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-46.
    2. Spyros Arvanitis & Heinz Hollenstein & Tobias Stucki, 2013. "Determinants of Internationalisation - Do they Differ among Sectors and Business Functions?," KOF Working papers 13-348, KOF Swiss Economic Institute, ETH Zurich.

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