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Research on how service firms choose their initial mode of operation in foreign markets appears to have led to two contradictory conclusions. Findings from one group of studies suggest that factors determining entry mode choice by manufacturing firms are generalizable to service firms. Findings from another group of studies contradict that view. The authors reconcile the two views by means of a classification scheme that allows some services to be grouped with manufactured goods in terms of entry mode choice. A conceptual model of factors affecting the entry mode choice of service firms is proposed, research propositions are developed, and managerial implications and future research directions are discussed.
Journal of the Academy of Marketing Science – Springer Journals
Published: Sep 1, 1998
Keywords: Foreign Direct Investment; Joint Venture; Foreign Market; Market Entry; Cultural Distance
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