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International market selection by business service firms: Key conceptual and methodological issues

Author

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  • O'Farrell, Patrick N.
  • Wood, Peter A.
Abstract
There is a research gap in our understanding of the process of internationalization and, in particular, international market selection by business service companies. The paper reviews the major determinants of international market selection including market size, geographic proximity, cultural distance, market similarity, size, government regulations, the firm's international experience, servicing home country clients, oligopolistic reaction and international locational choice. We attempt to contribute to the development of an extended conceptual framework in two ways: (i) by arguing that the nature, depth, types of modes of interaction between supplier and client will influence foreign market choice; (ii) by examining change in the organizational form of the investing company and foreign country market selection. We conclude that conceptual frameworks developed to understand internationalization by manufacturers require modification when applied to the service sector. Furthermore, more dynamic perspectives of export behaviour need to be developed which will focus not only upon market entry but also the development of foreign markets.

Suggested Citation

  • O'Farrell, Patrick N. & Wood, Peter A., 1994. "International market selection by business service firms: Key conceptual and methodological issues," International Business Review, Elsevier, vol. 3(3), pages 243-261, September.
    • Handle: RePEc:eee:iburev:v:3:y:1994:i:3:p:243-261
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    Citations

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    Cited by:

    1. 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.
    2. Richard T Harrison & Babangida Yohanna & Yannis Pierrakis, 2020. "Internationalisation and localisation: Foreign venture capital investments in the United Kingdom," Local Economy, London South Bank University, vol. 35(3), pages 230-256, May.
    3. He, Xinming & Wei, Yingqi, 2011. "Linking market orientation to international market selection and international performance," International Business Review, Elsevier, vol. 20(5), pages 535-546, October.
    4. Fiona Kun Yao & Ming-Jer Chen & Jiatao Li & Danielle Combs & Qiang Li, 2024. "A review of 50 years of research since Knickerbocker (1973): competitive dynamics in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(5), pages 522-550, July.
    5. Vanninen, Heini & Kuivalainen, Olli & Ciravegna, Luciano, 2017. "Rapid multinationalization: Propositions for studying born micromultinationals," International Business Review, Elsevier, vol. 26(2), pages 365-379.
    6. P N O'Farrell & P A Wood, 1998. "Internationalisation by Business Service Firms: Towards a New Regionally Based Conceptual Framework," Environment and Planning A, , vol. 30(1), pages 109-128, January.
    7. Ciravegna, Luciano & Lopez, Luis & Kundu, Sumit, 2014. "Country of origin and network effects on internationalization: A comparative study of SMEs from an emerging and developed economy," Journal of Business Research, Elsevier, vol. 67(5), pages 916-923.
    8. Andersen, O. & Buvik, A., 2002. "Firms' internationalization and alternative approaches to the international customer/market selection," International Business Review, Elsevier, vol. 11(3), pages 347-363, June.
    9. Brewer, P., 2001. "International market selection: developing a model from Australian case studies," International Business Review, Elsevier, vol. 10(2), pages 155-174, April.
    10. Fletcher, Richard, 2001. "A holistic approach to internationalisation," International Business Review, Elsevier, vol. 10(1), pages 25-49, February.
    11. Andersen, Otto & Suat Kheam, Low, 1998. "Resource-based theory and international growth strategies: an exploratory study," International Business Review, Elsevier, vol. 7(2), pages 163-184, April.

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