Inseparability and customisation degree as determinants of service firms’ internationalization

Abstract

The vast majority of theoretical approaches in internationalisation have emerged from manufacturing sector and, thus, some explanations may not be true in the whole service sector. This paper analyses the importance of sector characteristics in the entry mode choice and shows that there are different behaviours patterns not only among the service and manufacturing sectors but also among service firms. In this paper, we propose two characteristics of services, inseparability and customisation degree, as key dimensions to classify services because of their importance in the international arena. From a cluster analysis in a sample of 113 Spanish service firms, this paper identifies four groups of services and it provides evidence about the existence of some differences in the entry mode choice patterns according to the nature of the group being analysed.Service characteristics, internationalisation, entry modes, control degree