Internationalization of goods and services: A comparison of the internationalization of service providers and manufacturers in Switzerland

Abstract

Purpose – In the Swiss economy, the service sector has gained a great share of international trade and foreign investments. Export promotion measures, though, are mainly focused on the internationalization of manufacturing companies. From the literature it remains unclear if the internationalization behavior of service and manufacturing firms differs and if promotion measures should be adapted. The present study describes the internationalization of service firms and compares it with the internationalization of manufacturing companies.

Methodology – The study is structured into two consecutive surveys: the first one is explorative, qualitative-empirical, and examines the internationalization behavior of 12 service companies, four each from the industries of corporate consulting, engineering, and information technology. The resulting hypotheses are tested in a subsequent confirmatory, quantitative-empirical survey of 443 service providers from the sectors of consulting, information technology, and education, as well as 553 production enterprises from the sectors of food, textiles, and chemical products.

Findings – The results show that the psychological distance to foreign markets has a greater importance for service providers than for production companies. Service providers prefer direct distribution systems and develop foreign markets more simultaneously than production companies.

Practical implications – The conclusion is that export promotion programs should be tailored to the specific needs of different segments of the economy.

Originality of paper – The study offers an empirical support to the position that the internationalization behaviors of service providers and manufacturers differ, and that internationalization models which are substantially based on the examination of manufacturing companies should be verified.

Citation

Lehmann, R. (2009), "Internationalization of goods and services: A comparison of the internationalization of service providers and manufacturers in Switzerland", Larimo, J. and Vissak, T. (Ed.) Research on Knowledge, Innovation and Internationalization (Progress in International Business Research, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 115-135. https://doi.org/10.1108/S1745-8862(2009)0000004010