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The Current State of Knowledge in International Business in Producer Services

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  • S Bagchi-Sen
  • J Sen

Abstract

In this paper the authors review recent research on the characteristics and operations of service multinationals. To provide an understanding of the determinants of internationalization, entry modes, and strategies of product and market diversification, examples are taken from producer service firms with specific emphasis upon accounting and advertising services. The competitive advantage of service multinationals in the United States and Western Europe is at the core of most discussion; however, the competitive strategies of the Japanese advertising firms vis-Ã -vis their Western counterparts are discussed to highlight interorganizational differences. This paper is organized into five sections: the definition of services and the determinants of growth in producer services in the industrially advanced nations; theoretical explanations of international investments in services; empirical research on the determinants of internationalization, entry mode, and business strategies of service firms; industry-specific examples of competitiveness in accounting and advertising; and implications for future research.

Suggested Citation

  • S Bagchi-Sen & J Sen, 1997. "The Current State of Knowledge in International Business in Producer Services," Environment and Planning A, , vol. 29(7), pages 1153-1174, July.
    • Handle: RePEc:sae:envira:v:29:y:1997:i:7:p:1153-1174
    DOI: 10.1068/a291153
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    References listed on IDEAS

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    1. Vern Terpstra & Chwo-Ming Yu, 1988. "Determinants of Foreign Investment of U.S. Advertising Agencies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 33-46, March.
    2. Mohammed M. Habib & Bart Victor, 1991. "Strategy, structure, and performance of U.S. manufacturing and service MNCs: A comparative analysis," Strategic Management Journal, Wiley Blackwell, vol. 12(8), pages 589-606, November.
    3. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0.
    4. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
    5. Erica L. Groshen, 1987. "Can services be a source of export-led growth? Evidence from the fourth district," Economic Review, Federal Reserve Bank of Cleveland, issue Q III, pages 2-15.
    6. M Krishna Erramilli, 1991. "The Experience Factor in Foreign Market Entry Behavior of Service Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 479-501, September.
    7. J J Boddewyn & Marsha Baldwin Halbrich & A C Perry, 1986. "Service Multinationals: Conceptualization, Measurement and Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 41-57, September.
    8. Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-295, November.
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    Cited by:

    1. John Bowen & Thomas Leinbach, 2004. "Market Concentration In The Air Freight Forwarding Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(2), pages 174-188, April.
    2. J Howells & B Tether & F Gallouj & F Djellal & C Gallouj & K Blind & J Edler & C Hipp & F Montobbio & N Corrocher & A Macpherson & D Banach, 2004. "Innovation in Services: Issues at Stake and Trends," Working Papers halshs-01113600, HAL.
    3. Henk Kox, 2001. "Exposure of the business services industry to international competition," CPB Document 10, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Peter J. Taylor & Ben Derudder & James Faulconbridge & Michael Hoyler & Pengfei Ni, 2014. "Advanced Producer Service Firms as Strategic Networks, Global Cities as Strategic Places," Economic Geography, Clark University, vol. 90(3), pages 267-291, July.
    5. Peter J. Taylor & Gilda Catalana & David Walker, 2004. "Multiple globalisations: regional, hierarchical and sectoral articulations of global business services through world cities," The Service Industries Journal, Taylor & Francis Journals, vol. 24(3), pages 63-81, May.

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