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Entry Modes for Manufacturers’ International After-Sales Service: Analysis of Transaction-specific, Firm-specific and Country-specific Determinants

Author

Listed:
  • Dirk Morschett

    (University of Fribourg)

  • Hanna Schramm-Klein

    (Saarland University)

  • Bernhard Swoboda

    (University of Trier)

Abstract

and Key Results This paper investigates which criteria influence a company’s entry mode choice for its after-sales service in a foreign country. With a focus on the decision between integrative and cooperative entry modes, an empirical study of 80 foreign entry mode decisions by German manufacturing companies identified determinants of particular importance for after-sales service. Country-specific variables exert a dominant influence on entry mode choice. Country risk, fluctuations in demand, and the availability of suitable service partners increase the probability of choosing a cooperative entry mode. Cultural distance from the host country leads to integrative modes. As transaction-specific variables, a difficult service quality evaluation is shown to increase the likelihood of establishing wholly-owned subsidiaries, as are high resource requirements. Service as competitive advantage also leads to the internalization of the service-function. The companies surveyed are highly satisfied with the entry mode chosen for their after-sales service in foreign markets, which implies that managerial implications can be drawn from the results.

Suggested Citation

  • Dirk Morschett & Hanna Schramm-Klein & Bernhard Swoboda, 2008. "Entry Modes for Manufacturers’ International After-Sales Service: Analysis of Transaction-specific, Firm-specific and Country-specific Determinants," Management International Review, Springer, vol. 48(5), pages 525-550, November.
    • Handle: RePEc:spr:manint:v:48:y:2008:i:5:d:10.1007_s11575-008-0035-7
    DOI: 10.1007/s11575-008-0035-7
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    Cited by:

    1. Zhi Shen & Francisco Puig & Justin Paul, 2017. "Foreign Market Entry Mode Research: A Review and Research Agenda," The International Trade Journal, Taylor & Francis Journals, vol. 31(5), pages 429-456, October.
    2. Anne-Wil Harzing & Markus Pudelko, 2016. "Do We Need to Distance Ourselves from the Distance Concept? Why Home and Host Country Context Might Matter More Than (Cultural) Distance," Management International Review, Springer, vol. 56(1), pages 1-34, February.
    3. Mukherjee Subhasree & Dhayanithy Deepak, 2017. "Effect of Inter-organizational Network on TMT – Entry Mode Choice relationship," Working papers 246, Indian Institute of Management Kozhikode.
    4. Fernando Moreira Silva & Mario Henrique Ogasavara & Renato Pereira, 2024. "Institutional distances and equity-based entry modes: a systematic literature review," Management Review Quarterly, Springer, vol. 74(3), pages 1723-1790, September.
    5. López-Duarte, Cristina & González-Loureiro, Miguel & Vidal-Suárez, Marta M. & González-Díaz, Belén, 2016. "International strategic alliances and national culture: Mapping the field and developing a research agenda," Journal of World Business, Elsevier, vol. 51(4), pages 511-524.

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