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Service characteristics as moderators of the entry mode choice: empirical evidence in the hotel industry

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  • Cristina Villar
  • José Pla-Barber
  • Fidel León-Darder

Abstract

Although a considerable amount of research has explored the entry mode choice, results regarding the direct influence of some variables on the entry mode choice evince a lack of a clear consistency. By introducing the moderator effect of the nature of the services being provided by the firm, we explain some of these inconclusive results. We use a comprehensive database on the Spanish hotel industry which covers nearly all the operations carried out by the majority of Spanish hotel chains up to 2011. We found that both intangibility and complexity of the services offered by the hotel moderate the relationship between environmental uncertainties and entry mode choice by increasing the propensity to use greater commitment entry modes when faced with conditions of country risk and cultural uncertainty.

Suggested Citation

  • Cristina Villar & José Pla-Barber & Fidel León-Darder, 2012. "Service characteristics as moderators of the entry mode choice: empirical evidence in the hotel industry," The Service Industries Journal, Taylor & Francis Journals, vol. 32(7), pages 1137-1148, January.
  • Handle: RePEc:taf:servic:v:32:y:2012:i:7:p:1137-1148
    DOI: 10.1080/02642069.2012.662497
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    Citations

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    Cited by:

    1. Anne-Wil Harzing & Markus Pudelko, 2016. "Do We Need to Distance Ourselves from the Distance Concept? Why Home and Host Country Context Might Matter More Than (Cultural) Distance," Management International Review, Springer, vol. 56(1), pages 1-34, February.
    2. Conti, Giuliano & Lo Turco, Alessia & Maggioni, Daniela, 2014. "Spillovers through backward linkages and the export performance of business services. Evidence from a sample of Italian firms," International Business Review, Elsevier, vol. 23(3), pages 552-565.
    3. Katharina Maria Hofer, 2015. "How Do Austrian Small and Medium-Sized Service Enterprises Internationalize? Entry Strategies into the Emerging Markets of Central and Eastern Europe and the Role of Relationships," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 14(1), pages 23-42, June.
    4. repec:eee:touman:v:51:y:2015:i:c:p:142-155 is not listed on IDEAS
    5. Arvanitis, Spyros & Hollenstein, Heinz & Stucki, Tobias, 2016. "Does the explanatory power of the OLI approach differ among sectors and business functions? Evidence from firm-level data," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 10, pages 1-46.
    6. repec:eee:iburev:v:27:y:2018:i:1:p:113-124 is not listed on IDEAS
    7. repec:eee:iburev:v:26:y:2017:i:5:p:867-880 is not listed on IDEAS
    8. Spyros Arvanitis & Heinz Hollenstein & Tobias Stucki, 2013. "Determinants of Internationalisation - Do they Differ among Sectors and Business Functions?," KOF Working papers 13-348, KOF Swiss Economic Institute, ETH Zurich.

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