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The impact of professional service firms’ expansion challenges on internationalization processes and performance

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  • Dina M. Abdelzaher

Abstract

In making the distinctions in the internationalization of capital-intensive service firms (CISFs) vs . knowledge-intensive service firms (KIFs), KIFs were found to realize financial gains in earlier stages of internationalization than CISFs. Should not this make them more likely to internationalize? Still, service firms are significantly more ‘home oriented’ than manufacturing firms. This paper explains why professional service firms (PSFs), a subcategory of KIFs, are likely to follow a more cautious internationalization process and proposes a spider web-like expansion process. Then, it explains how PSFs’ characteristics of (1) clients’ dependence (2) knowledge commoditization, and (3) executives’ hubris moderate the internationalization to performance relationship.

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  • Dina M. Abdelzaher, 2012. "The impact of professional service firms’ expansion challenges on internationalization processes and performance," The Service Industries Journal, Taylor & Francis Journals, vol. 32(10), pages 1721-1738, January.
    • Handle: RePEc:taf:servic:v:32:y:2012:i:10:p:1721-1738
    DOI: 10.1080/02642069.2012.665901
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    Cited by:

    1. Taylor, Murray & Jack, R. & Madsen, T. & Alam, M.A., 2021. "The nature of service characteristics and their impact on internationalization: A multiple case study of born global firms," Journal of Business Research, Elsevier, vol. 132(C), pages 517-529.
    2. Uner, M. Mithat & Cetin, Burak & Cavusgil, S. Tamer, 2020. "On the internationalization of Turkish hospital chains: A dynamic capabilities perspective," International Business Review, Elsevier, vol. 29(3).
    3. Agnieszka Chidlow & Pervez N. Ghauri & Amjad Hadjikhani, 2019. "Internationalization of Service Firms and Their Interactions with Socio-Political Actors," Management International Review, Springer, vol. 59(4), pages 499-514, August.
    4. Seymur AÄŸazade, 2022. "The effect of tourism source market structure on international tourism revenues in Turkey," Tourism Economics, , vol. 28(3), pages 714-727, May.
    5. Bunz, Thorsten & Casulli, Lucrezia & Jones, Marian V & Bausch, Andreas, 2017. "The dynamics of experiential learning: Microprocesses and adaptation in a professional service INV," International Business Review, Elsevier, vol. 26(2), pages 225-238.
    6. Shin, Joonho & Mendoza, Xavier & Hawkins, Matthew A. & Choi, Changbum, 2017. "The relationship between multinationality and performance: Knowledge-intensive vs. capital-intensive service micro-multinational enterprises," International Business Review, Elsevier, vol. 26(5), pages 867-880.
    7. Norwan Ahmad & Ng Siew Imm & Yuhanis Abdul Aziz & Norazlyn Kamal Basha, 2020. "Why Not Knowledge-Based HRM? Its Direct and Indirect Effect on Innovative Service Offerings," SAGE Open, , vol. 10(4), pages 21582440209, December.
    8. Yuliani Suseno & Chris Rowley, 2018. "Social capital in service-oriented firms: future directions," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(2), pages 261-271, March.

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