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Service embeddedness and its role in a firm’s internationalisation process

Service embeddedness and its role in a firm’s internationalisation process Purpose – Perceived differences in the composition of goods and services forms the basis of a significant degree of analysis of the firm internationalisation process. In particular, product inseparability is highlighted as a distinguishing feature of service offerings and purports to explain the different approaches to internationalisation strategy adopted by service firms. The research, however, proposes that the division of goods and services into distinct products is outmoded. Rather, it is important to understand the extent of service components that embody, or are embedded in, a product offering. The authors argue that this “service embeddedness” influences the process by which a firm internationalises. The paper aims to discuss these issues. Design/methodology/approach – Based on ten case studies of Australian international firms, this paper examines the impact of service embeddedness on a firm’s internationalisation process. Findings – The research underlines that firms approach internationalisation with a view of ensuring that the various activities that combine to form their product offering are available to their international clients. Research limitations/implications – From an academic perspective, a dichotomous approach to products (good or service) underestimates the role that embedded services have on a firm’s internationalisation process. The research, therefore, has implications for researchers and practitioners as it highlights the importance of delivering products internationally that comprise of both good and embedded service components. Originality/value – The research develops a deeper understanding of the extent and nature of separability within individual product categories from international production and operations perspectives. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Operations & Production Management Emerald Publishing

Service embeddedness and its role in a firm’s internationalisation process

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0144-3577
DOI
10.1108/IJOPM-05-2010-0121
Publisher site
See Article on Publisher Site

Abstract

Purpose – Perceived differences in the composition of goods and services forms the basis of a significant degree of analysis of the firm internationalisation process. In particular, product inseparability is highlighted as a distinguishing feature of service offerings and purports to explain the different approaches to internationalisation strategy adopted by service firms. The research, however, proposes that the division of goods and services into distinct products is outmoded. Rather, it is important to understand the extent of service components that embody, or are embedded in, a product offering. The authors argue that this “service embeddedness” influences the process by which a firm internationalises. The paper aims to discuss these issues. Design/methodology/approach – Based on ten case studies of Australian international firms, this paper examines the impact of service embeddedness on a firm’s internationalisation process. Findings – The research underlines that firms approach internationalisation with a view of ensuring that the various activities that combine to form their product offering are available to their international clients. Research limitations/implications – From an academic perspective, a dichotomous approach to products (good or service) underestimates the role that embedded services have on a firm’s internationalisation process. The research, therefore, has implications for researchers and practitioners as it highlights the importance of delivering products internationally that comprise of both good and embedded service components. Originality/value – The research develops a deeper understanding of the extent and nature of separability within individual product categories from international production and operations perspectives.

Journal

International Journal of Operations & Production ManagementEmerald Publishing

Published: Mar 2, 2015

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