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Service characteristics as moderators of the entry mode choice: empirical evidence in the hotel industry

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  • Cristina Villar
  • José Pla-Barber
  • Fidel León-Darder

Abstract

Although a considerable amount of research has explored the entry mode choice, results regarding the direct influence of some variables on the entry mode choice evince a lack of a clear consistency. By introducing the moderator effect of the nature of the services being provided by the firm, we explain some of these inconclusive results. We use a comprehensive database on the Spanish hotel industry which covers nearly all the operations carried out by the majority of Spanish hotel chains up to 2011. We found that both intangibility and complexity of the services offered by the hotel moderate the relationship between environmental uncertainties and entry mode choice by increasing the propensity to use greater commitment entry modes when faced with conditions of country risk and cultural uncertainty.

Suggested Citation

  • Cristina Villar & José Pla-Barber & Fidel León-Darder, 2012. "Service characteristics as moderators of the entry mode choice: empirical evidence in the hotel industry," The Service Industries Journal, Taylor & Francis Journals, vol. 32(7), pages 1137-1148, January.
    • Handle: RePEc:taf:servic:v:32:y:2012:i:7:p:1137-1148
    DOI: 10.1080/02642069.2012.662497
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    Cited by:

    1. 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.
    2. Linda Woo & Sung Gyun Mun & Kwanglim Seo, 2023. "How do hotels expand into new markets? The relationship between hotel agglomeration and entry mode," Tourism Economics, , vol. 29(8), pages 2183-2199, December.
    3. Katharina Maria Hofer, 2015. "How Do Austrian Small and Medium-Sized Service Enterprises Internationalize? Entry Strategies into the Emerging Markets of Central and Eastern Europe and the Role of Relationships," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 14(1), pages 23-42, June.
    4. Jell-Ojobor, Maria & Hajdini, Ilir & Windsperger, Josef, 2022. "Governance of international franchise networks: Combining value creation and value appropriation perspectives," Journal of Business Research, Elsevier, vol. 139(C), pages 267-279.
    5. 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.
    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. 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.
    8. Jean Oxas Shingiro & Olawumi Dele Awolusi, 2023. "Corporate Strategies and Financial Performance among Foreign Commercial Banks in Bujumbura, Burundi," Journal of Economics and Behavioral Studies, AMH International, vol. 15(4), pages 87-105.
    9. Chahal, Hardeep & Gupta, Mahesh & Bhan, Namrita & Cheng, T.C.E., 2020. "Operations management research grounded in the resource-based view: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 230(C).
    10. Conti, Giuliano & Lo Turco, Alessia & Maggioni, Daniela, 2014. "Spillovers through backward linkages and the export performance of business services. Evidence from a sample of Italian firms," International Business Review, Elsevier, vol. 23(3), pages 552-565.
    11. Erim Ergene & Bruce Skaggs & Inigo Echeveste, 2021. "Service production in high captivity service firms," Service Business, Springer;Pan-Pacific Business Association, vol. 15(1), pages 19-43, March.
    12. Souto, Jaime E., 2015. "Business model innovation and business concept innovation as the context of incremental innovation and radical innovation," Tourism Management, Elsevier, vol. 51(C), pages 142-155.
    13. Mohr, Alex & Batsakis, Georgios, 2018. "Firm resources, cultural distance and simultaneous international expansion in the retail sector," International Business Review, Elsevier, vol. 27(1), pages 113-124.

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