Internationalization of services: the service exporting decision

Services represent the fastest growing portion of the world economy, yet they are still vastly under‐represented in the export packages of most countries. Services present unique challenges that make exporting potentially more difficult and riskier than for goods industries, yet they also offer huge untapped potential with very little research done in this area. This study develops hypotheses regarding the exporting decisions of services companies using qualitative interviews and the exporting literature. These are then tested through a survey of nearly 700 consulting engineering firms. Nearly 90 per cent of the exporting firms in the sample are happy with the performance of their exporting programs, yet nearly three‐quarters of the firms are not exporting. Overcoming limitations in know‐how and resources, developing positive attitudes about exporting, recognizing foreign opportunities and fostering management commitment to exporting are found to be the most important determinants of exporting behavior for professional services firms.

[1]  C. P. Rao,et al.  Choice of Foreign Market Entry Modes by Service Firms: Role of Market Knowledge , 1990 .

[2]  George S. Yip,et al.  Developing Global Strategies for Service Businesses , 1996 .

[3]  David E. Williams.  Motives for retailer internationalization: Their impact, structure and implications , 1992 .

[4]  Jiatao Li,et al.  The Globalization of Service Multinationals in the “Triad” Regions: Japan, Western Europe and North America , 1992 .

[5]  Leonidas C. Leonidou,et al.  Empirical Research on Export Barriers: Review, Assessment, and Synthesis , 1995 .

[6]  Robert P. Leone,et al.  A Market Expansion Ability Approach to Identify Potential Exporters , 1992 .

[7]  John E. G. Bateson,et al.  Managing Services Marketing: Text and Readings , 1989 .

[8]  Domestic Commerce,et al.  Survey of current business , 1921 .

[9]  C. N. Axinn,et al.  EXPORT PERFORMANCE: DO MANAGERIAL PERCEPTIONS MAKE A DIFFERENCE? , 1988 .

[10]  Lawrence S. Welch,et al.  Inward-Outward Connections in Internationalization , 1993 .

[11]  S. Tamer Cavusgil,et al.  Firm and management characteristics as discriminators of export marketing activity , 1987 .

[12]  Sandra Vandermerwe,et al.  The Internationalisation of Services , 1989 .

[13]  Kau Ah Keng,et al.  Differences between Small and Medium Sized Exporting and Non‐Exporting Firms: Nature or Nurture , 1989 .

[14]  Paul G. Patterson,et al.  A Typology of Service Firms in International Markets: An Empirical Investigation , 1995 .

[15]  A. Parasuraman,et al.  Problems and Strategies in Services Marketing , 1985 .

[16]  L. Welch,et al.  INITIAL EXPORTS – A MARKETING FAILURE? , 1980 .

[17]  Lee D. Dahringer.  Marketing Services Internationally: Barriers and Management Strategies , 1991 .

[18]  M. Erramilli,et al.  Entry Mode Choice in Service Industries , 1990 .

[19]  D. Sharma.  Overseas Market Entry Strategy: The Technical Consultancy Firms. , 1989 .

[20]  C. P. Rao,et al.  Service Firms’ International Entry-Mode Choice: A Modified Transaction-Cost Analysis Approach , 1993 .

[21]  Sylvie K. Chetty,et al.  Firm‐level Determinants of Export Performance: A Meta‐analysis , 1993 .

[22]  Eilif Trondsen,et al.  New opportunities in global services , 1987 .

[23]  Leonidas C. Leonidou,et al.  The Export Development Process: An Integrative Review of Empirical Models , 1996 .

[24]  H. Wichmann,et al.  Exports: A Necessary Ingredient in the Growth of Small Business Firms , 1986 .

[25]  A. Eshghi.  Attitude‐behaviour Inconsistency in Exporting , 1992 .