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Regional Influences on Foreign Market Development by Business Service Companies: Elements of a Strategic Context Explanation

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  • P. N. O'Farrell
  • P. A. Wood
  • J. Zheng

Abstract

O'FARRELL P. N., WOOD P. A. and ZHENG J. (1998) Regional influences on foreign market development by business service companies: elements of a strategic context explanation, Reg. Studies 32 , 31-48. The internationalization literature - both of manufacturing and services - has concentrated upon the issue of entry, and largely ignored post-entry behaviour and market development. A major aim of this paper, therefore, is to present evidence on foreign market development by business service firms in two UK regions, Scotland and the South East of England, and the Amsterdam urban region of the Netherlands. Following a review of the relevance of the internalization approach, the development stages paradigm, network analysis and a strategic choice framework to internationalization by business services, empirical findings are presented from the three regions on trajectories of foreign market development, modal shifts, the incidence of proactive market strategies and the characteristics of major clients. A behavioural framework is proposed for decision making by business service firms developing foreign markets, identifying the elements of a strategic context explanation. O'FARRELL P. N., WOOD P. A. et ZHENG J. (1998) L'impact regional des societes de services sur l'evolution du marche exterieur: les elements d'une explication portant sur un contexte strategique, Reg. Studies 32 , 31-48. La documentation au sujet de l'internationalisation - et de l'industrie, et des services - s'est concentree sur la question de la penetration et dans une large mesure a ignore le comportement qui s'ensuit et le developpement des marches. Aussi, cet article cherche-t-il principalement a faire des preuves a propos du developpement des marches exterieurs par des societes de service situees dans deux regions au Royaume-Uni, a savoir en Ecosse et dans le Sud-Est, et la conurbation d'Amsterdam aux Pays-Bas. Suite a une critique de l'importance de la facon d'interiorisation, du paradigme des phases de developpement, de l'analyse de reseaux et d'un cadre de choix strategiques relatif a l'internationalisation des societes de service, les preuves empiriques se voient presenter a partir de trois regions quant au developpement des marches exterieurs, aux deplacements modaux, a la frequence des strategies de marchedynamiques et aux caracteristiques des clients importants. Un cadre du comportement se voit proposer pour la prise de decision des societes de service qui developpent des marches exterieurs et identifie les elements d'une explication portant sur un contexte strategique. O'FARRELL P. N., WOOD P. A. und ZHENG J. (1998) Regionale Einflusse auf Entwicklung von Markten im Ausland durch Gesellschaften, die Geschaftsdienstleistungen anbieten: Elemente einer Erklarung strategischer Zusammenhange, Reg. Studies 32 , 31-48. Die Literatur der Internationalisierung - der Produktion wie auch der Dienstleistungen - hat sich auf die Frage des Einstiegs konzentriert, und das Verhalten und Marktenwicklung danach grossenteils vernachlassigt. Es ist deshalb ein Hauptziel dieses Aufsatzes, Anzeichen der Entwicklung des Marktes fur Geschaftsdienstleistungsfirmen in zwei Regionen des Vereinigten Konigreichs, namlich Schottland und Sudostengland, und in der Amsterdamer Stadtregion der Niederlande aufzuzeigen. Im Anschluss an eine Besprechung der Relevanz der Einstellung zur Internalisierung von Beispielen von Entwicklungsstadien, der Netzwerkanalyse und der Grundlagen strategischer Optionen fur Internationalisierung durch Geschaftsdienstleistungen werden empirische Befunde aus den drei Gebieten fur die Entwicklungskurve auslandischer Markte, modaler Verschiebungen, das Vorkommen proaktiver Marktstrategien und die charakteristischen Zuge bedeutender Klienten vorgelegt, Firmen, die Markte fur Geschaftsdienstleistungen im Ausland entwickeln, wird eine Vorgehensstruktur vorgeschlagen, welche die Elemente einer strategischen Zusammenhangserklarung herausstellt.

Suggested Citation

  • P. N. O'Farrell & P. A. Wood & J. Zheng, 1998. "Regional Influences on Foreign Market Development by Business Service Companies: Elements of a Strategic Context Explanation," Regional Studies, Taylor & Francis Journals, vol. 32(1), pages 31-48.
    • Handle: RePEc:taf:regstd:v:32:y:1998:i:1:p:31-48
    DOI: 10.1080/00343409850123602
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    2. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July.
    3. S. De Prijcker & S. Manigart & M. Wright & W. De Maeseneire, 2009. "The influence of international human capital and international network relationships on the cross-border investment behaviour of private equity firms," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/597, Ghent University, Faculty of Economics and Business Administration.
    4. Musso, Fabio & Francioni, Barbara, 2011. "Foreign Markets Entry Mode Decision for Italian Small and Medium-Sized Enterprises," MPRA Paper 50067, University Library of Munich, Germany, revised 31 Oct 2011.
    5. Dimitratos, Pavlos & Petrou, Andreas & Plakoyiannaki, Emmanuella & Johnson, Jeffrey E., 2011. "Strategic decision-making processes in internationalization: Does national culture of the focal firm matter?," Journal of World Business, Elsevier, vol. 46(2), pages 194-204, April.
    6. Musso, Fabio & Francioni, Barbara, 2009. "Foreign markets entry mode decision for SMEs. Key factors and role of industrial districts," MPRA Paper 32153, University Library of Munich, Germany.

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