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Customer Interaction Uncertainty, Knowledge, and Service Firm Internationalization

Author

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  • Meyer, Chris R.
  • Skaggs, Bruce C.
  • Nair, Sudhir
  • Cohen, David G.

Abstract

Uncertainty in production processes has proven to be a useful lens through which to explain the international entry mode choices of large manufacturing firms. This paper adapts that approach to suggest that service firms determine their internationalization mode based on the uncertainty arising from their interactions with customers. In our model, service firms counter customer interaction uncertainty by deploying knowledge in two primary forms: in processes and procedures or within workers themselves. We suggest that the location of this knowledge deployment impacts the choice of which mode firms will use when they deploy their services internationally. Also, befitting the greater alternatives available for conducting business internationally for service firms, we explore and model a wider range of modes than traditionally suggested by manufacturing-centric scholarship.

Suggested Citation

  • Meyer, Chris R. & Skaggs, Bruce C. & Nair, Sudhir & Cohen, David G., 2015. "Customer Interaction Uncertainty, Knowledge, and Service Firm Internationalization," Journal of International Management, Elsevier, vol. 21(3), pages 249-259.
    • Handle: RePEc:eee:intman:v:21:y:2015:i:3:p:249-259
    DOI: 10.1016/j.intman.2015.04.003
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    2. Ziyi Wei & Quyen T. K. Nguyen, 2020. "Chinese Service Multinationals: The Degree of Internationalization and Performance," Management International Review, Springer, vol. 60(6), pages 869-908, December.
    3. Erim Ergene & Bruce Skaggs & Inigo Echeveste, 2021. "Service production in high captivity service firms," Service Business, Springer;Pan-Pacific Business Association, vol. 15(1), pages 19-43, March.
    4. Etemad, Hamid & Motaghi, Hamed, 2018. "Internationalization pattern of creative-cultural events: Two cases from Canada," International Business Review, Elsevier, vol. 27(5), pages 1033-1044.
    5. Shufeng Simon Xiao & Yong Kyu Lew & Byung Il Park, 2019. "‘2R-Based View’ on the Internationalization of Service MNEs from Emerging Economies: Evidence from China," Management International Review, Springer, vol. 59(4), pages 643-673, August.
    6. Chris R. Meyer & David G. Cohen & Sudhir Nair, 2017. "Some have to, and some want to: Why firms adopt a post-industrial form," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(2), pages 533-559, June.
    7. Saul Fernandez Hurtado & Luz Martinez Martinez, 2018. "Internationalization of Colombian Firms: Competitive and Productivity as a Problem to Enter the Asian Market," Asian Social Science, Canadian Center of Science and Education, vol. 14(1), pages 183-183, January.
    8. Denitsa Hazarbassanova Blagoeva & Peter D. Ørberg Jensen & Hemant Merchant, 2020. "Services in International Business Studies: A Replication and Extension of Merchant and Gaur (2008)," Management International Review, Springer, vol. 60(3), pages 427-457, June.

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