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Value creation logics and internationalization of service firms

Peter D. Ørberg Jensen (Department of Strategic Management and Globalization, Copenhagen Business School, Frederiksberg, Denmark)
Bent Petersen (Department of Strategic Management and Globalization, Copenhagen Business School, Frederiksberg, Denmark)

International Marketing Review

ISSN: 0265-1335

Article publication date: 10 November 2014

Abstract

Purpose

While mainstream theories in international business and management are foundedeither explicitly or implicitly on studies of manufacturing firms, prior attempts to develop theoryon the internationalization of service firms are sparse and have yet to establish solid andcomprehensive frameworks. The thrust of this study is that value creation logics, a constructoriginally developed by Stabell and Fjeldstad (1998) can assist us in better understanding why and how service firms internationalize. The authors extend this construct and propose that the internationalization of service firms must be based on a thorough understanding of the fundamental nature of these firms.

Design/methodology/approach

Theoretical study.

Findings

The authors put forward propositions concerning the pace of internationalization and the default foreign operation modes in service firms.

Research limitations/implications

The use of value creation logics can be a useful complement to the conventional approaches to the study of service firms’ internationalization. However, the fact that most firms encompass more than one value creation logic complicates the use of firm databases and industry statistics.

Practical implications

The authors suggest that managers in service firms should consider primarily the nature of the value creation logic(s) in their firms when deciding and designing an internationalization strategy.

Originality/value

The study presents a novel theoretical approach and a set of propositions on service firm internationalization founded on the specific characteristics of the service activities.

Keywords

Acknowledgements

The authors wish to thank Gabriel R.G. Benito, Øystein Fjeldstad, Randi Lunnan, Amir Sasson, and participants at the workshop on Service Firm Internationalization at the Copenhagen Business School, June 2013, for numerous inspiring discussions.

Citation

Jensen, P.D.Ø. and Petersen, B. (2014), "Value creation logics and internationalization of service firms", International Marketing Review, Vol. 31 No. 6, pp. 557-575. https://doi.org/10.1108/IMR-09-2013-0187

Publisher

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Emerald Group Publishing Limited

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