IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v10y2004i1p125-146.html
   My bibliography  Save this article

The effect of service intangibility on revenue from foreign markets

Author

Listed:
  • Cloninger, Peggy A.

Abstract

Drawing on the Eclectic Theory, this empirical study reports a test of the influence of intangibility on the receipt of revenues from foreign markets, and the moderating influence of management international experience. To insure sufficient variance in service intangibility while also controlling for extraneous sectoral and national variables, this study obtained extensive cross-sectional data from U.S.-based manufacturing and services firms in the environmental control industry. For this sample, the findings indicate that tangibility is positively related to the receipt of foreign revenues and to the use of higher control entry mode, supporting the view that intangibility is an important variable for understanding internationalization and value creation.

Suggested Citation

  • Cloninger, Peggy A., 2004. "The effect of service intangibility on revenue from foreign markets," Journal of International Management, Elsevier, vol. 10(1), pages 125-146.
    • Handle: RePEc:eee:intman:v:10:y:2004:i:1:p:125-146
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425303000991
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Vern Terpstra & Chwo-Ming Yu, 1988. "Determinants of Foreign Investment of U.S. Advertising Agencies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 33-46, March.
    2. Shane, Scott A., 1996. "Why franchise companies expand overseas," Journal of Business Venturing, Elsevier, vol. 11(2), pages 73-88, March.
    3. Paul Westhead & Mike Wright & Deniz Ucbasaran & Frank Martin, 2001. "International market selection strategies of manufacturing and services firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(1), pages 17-46, January.
    4. Phillips McDougall, Patricia & Shane, Scott & Oviatt, Benjamin M., 1994. "Explaining the formation of international new ventures: The limits of theories from international business research," Journal of Business Venturing, Elsevier, vol. 9(6), pages 469-487, November.
    5. Kent Eriksson & Jan Johanson & Anders Majkgård & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 337-360, June.
    6. Kumar, V. & Subramanian, Velavan, 1997. "A contingency framework for the mode of entry decision," Journal of World Business, Elsevier, vol. 32(1), pages 53-72, April.
    7. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    8. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    9. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
    10. Sanjeev Agarwal & Sridhar N Ramaswami, 1992. "Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internationalization Factors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 1-27, March.
    11. J J Boddewyn & Marsha Baldwin Halbrich & A C Perry, 1986. "Service Multinationals: Conceptualization, Measurement and Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 41-57, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stevens, Charles E. & Makarius, Erin E. & Mukherjee, Debmalya, 2015. "It Takes Two to Tango: Signaling Behavioral Intent in Service Multinationals' Foreign Entry Strategies," Journal of International Management, Elsevier, vol. 21(3), pages 235-248.
    2. Basuil, Dynah A. & Datta, Deepak K., 2019. "Effects of Firm-specific and Country-specific Advantages on Relative Acquisition Size in Service Sector Cross-Border Acquisitions: An Empirical Examination," Journal of International Management, Elsevier, vol. 25(1), pages 66-80.
    3. Alan M. Rugman & Alain Verbeke, 2012. "A new perspective on the regional and global strategies of multinational services firms," Chapters, in: Handbook of Research on International Strategic Management, chapter 13, pages 257-270, Edward Elgar Publishing.
    4. Peggy A. Cloninger & Benjamin Oviatt, 2007. "Service Content and the Internationalization of Young Ventures: An Empirical Test," Entrepreneurship Theory and Practice, , vol. 31(2), pages 233-256, March.
    5. Meyer, Chris R. & Skaggs, Bruce C. & Nair, Sudhir & Cohen, David G., 2015. "Customer Interaction Uncertainty, Knowledge, and Service Firm Internationalization," Journal of International Management, Elsevier, vol. 21(3), pages 249-259.
    6. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    7. Chang, Cheng-Chang & Chen, Ju-Long, 2012. "A foreign expansion model with multi-site locations in service industries," International Journal of Production Economics, Elsevier, vol. 136(1), pages 102-109.
    8. Perks, Keith J. & Hughes, Mathew, 2008. "Entrepreneurial decision-making in internationalization: Propositions from mid-size firms," International Business Review, Elsevier, vol. 17(3), pages 310-330, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peggy A. Cloninger & Benjamin Oviatt, 2007. "Service Content and the Internationalization of Young Ventures: An Empirical Test," Entrepreneurship Theory and Practice, , vol. 31(2), pages 233-256, March.
    2. Javalgi, Rajshekhar (Raj) G. & Deligonul, Seyda & Dixit, Ashutosh & Cavusgil, S. Tamer, 2011. "International Market Reentry: A Review and Research Framework," International Business Review, Elsevier, vol. 20(4), pages 377-393, August.
    3. Surdu, Irina & Mellahi, Kamel, 2016. "Theoretical foundations of equity based foreign market entry decisions: A review of the literature and recommendations for future research," International Business Review, Elsevier, vol. 25(5), pages 1169-1184.
    4. Wrona, Thomas & Trąpczyński, Piotr, 2012. "Re-explaining international entry modes – Interaction and moderating effects on entry modes of pharmaceutical companies into transition economies," European Management Journal, Elsevier, vol. 30(4), pages 295-315.
    5. Lin, Feng-Jyh, 2010. "The determinants of foreign direct investment in China: The case of Taiwanese firms in the IT industry," Journal of Business Research, Elsevier, vol. 63(5), pages 479-485, May.
    6. Brouthers, Keith D. & Brouthers, Lance Eliot & Werner, Steve, 1996. "Dunning's eclectic theory and the smaller firm: The impact of ownership and locational advantages on the choice of entry-modes in the computer software industry," International Business Review, Elsevier, vol. 5(4), pages 377-394, August.
    7. Brouthers, Lance Eliot & Mukhopadhyay, Somnath & Wilkinson, Timothy J. & Brouthers, Keith D., 2009. "International market selection and subsidiary performance: A neural network approach," Journal of World Business, Elsevier, vol. 44(3), pages 262-273, July.
    8. Reinhold Decker & Xuemin Zhao, 2004. "SMEs' Choice of Foreign Market Entry Mode: A Normative Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 181-200, December.
    9. Drogendijk, H.J., 2001. "Expansion patterns of Dutch firms in Central and Eastern Europe : Learning to internationalize," Other publications TiSEM 18571cef-0dd0-46ff-82aa-3, Tilburg University, School of Economics and Management.
    10. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    11. Riku Laanti & Fred McDougall & Georges Baume, 2009. "How well do Traditional Theories Explain the Internationalisation of Service MNEs from Small and Open Economies? – Case: National Telecommunication Companies," Management International Review, Springer, vol. 49(1), pages 121-144, February.
    12. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    13. Elena Domínguez Romero & Susanne Durst & Antonio Navarro Garcia, 2024. "Rethinking internationalization processes: toward a circular framework," Review of Managerial Science, Springer, vol. 18(11), pages 3363-3394, November.
    14. Wei-Kang Wang & Wen-Min Lu & Qian Long Kweh & Yu-Li Liu, 2017. "Decentralized and concentrated investments in China and the performance of Taiwanese listed electronic companies," Applied Economics, Taylor & Francis Journals, vol. 49(25), pages 2443-2455, May.
    15. Vahid Jafari Sadeghi & Paolo Pietro Biancone & Charles Giacoma & Silvana Secinaro, 2018. "How does export compliance influence the internationalization of firms: is it a thread or an opportunity?," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-15, December.
    16. John Mathews, 2006. "Dragon multinationals: New players in 21 st century globalization," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 5-27, March.
    17. Abdulrahman Al–Aali & David J. Teece, 2014. "International Entrepreneurship and the Theory of the (Long–Lived) International Firm: A Capabilities Perspective," Entrepreneurship Theory and Practice, , vol. 38(1), pages 95-116, January.
    18. McCarthy, Daniel J. & Puffer, Sheila M., 1997. "Strategic investment flexibility for MNE success in Russia: Evolving beyond entry modes," Journal of World Business, Elsevier, vol. 32(4), pages 293-319, January.
    19. Czinkota, Michael R. & Grossman, David A. & Javalgi, Rajshekhar (Raj) G. & Nugent, Nicholas, 2009. "Foreign market entry mode of service firms: The case of U.S. MBA programs," Journal of World Business, Elsevier, vol. 44(3), pages 274-286, July.
    20. Aaltonen, Päivi Hanna Maria, 2020. "Piecing together a puzzle—A review and research agenda on internationalization and the promise of exaptation," International Business Review, Elsevier, vol. 29(4).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:10:y:2004:i:1:p:125-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.