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The purpose of this study is to examine the relationship between foreign market entry modes and hard‐ and soft‐service firms. The paper investigated which foreign market entry modes service firms opt for, and if this is influenced by systematic differences between types of service industries. A secondary purpose is to test the generalizability of the research findings from manufacturing sector to service sector firms.

Our sample consisted of 140 Swedish service firms. These firms were investigated using a mailed questionnaire survey, and logistic regression analysis was used for testing the hypotheses.

The statistical analysis shows that, in general, soft‐service firms are much more likely than hard service firms to choose a high control entry mode over a low control entry mode. Furthermore, as cultural distance increases, the likelihood of this choice increases even more.

The implications are that while hard service suppliers can learn from the experience of manufacturing firms going abroad, soft services are unique. Given the importance for soft‐service suppliers to interact with their foreign customers, they should opt for a high degree of control over their foreign market entry mode. In future research on foreign market entry mode selection in service firms more attention should be given to social processes that exercise control.

The findings enhance knowledge on foreign market entry by service firms.

Previous studies of the internationalisation process of firms have focused on the internationalisation of manufacturing firms. This article analyses the internationalisation of technical consultansy firms, a service industry. On the basis of two Swedish case studies the article concludes that the firms' networks of relationships with other firms has a critical role in the marketingisation of the firms. Three steps in a strategy development procedure are outlined.

Investigates managers’ perceptions of service quality in the international market. Eight propositions are developed using the relationship approach in industrial marketing and the internationalization process model. A structural LISREL‐based model is developed on the basis of a sample of 196 firms which supply business services abroad. The results suggest that customer relationships, industry relationships and unique competence strongly influence supplier‐perceived service quality in international markets.

This research explores how subsidiary embeddedness in different networks, both internal and external to the firm, contributes to the innovation of the service multinational corporation (MNC). Specifically, the authors analyze the different effects of networks on MNC’s subsidiaries performing competence-creating or competence-exploiting innovation activities, in the context of the service industry. The present study analyzes the data of 178 foreign-owned subsidiaries in the service sector performing innovation in Spain. The results of data analysis at two points in time show that external and internal embeddedness have a positive impact on the subsidiary innovation. Moreover, external embeddedness has a major positive influence on the competence-creating rather than on the competence-exploiting activities, while the internal embeddedness is equally important for both types of innovation. Therefore, this study contributes to further our understanding of how subsidiaries’ linkages affect innovation of the service MNC.

The purpose of this chapter is to contribute to research in the field of international entrepreneurship by complementing existing levels of analysis with a network perspective that captures how the pursuit of international opportunities at the foreign market level unfolds through processes ingrained in the network structures that firms are embedded in. By performing a multilevel review of 50 studies within the international entrepreneurship research field, the chapter contributes with an analysis of the evolvement of the international entrepreneurship field between the years 1994 and 2010, a discussion of the field's current status and where it is going from here. The results of the review show that whereas early work in the field of international entrepreneurship is primarily concentrated on individual entrepreneurs or individual firms, network-level-focused studies dominate among the later publications. Studies that adopt explicit network approaches have the potential to contribute to international entrepreneurship research by being able to shed light on the actual mechanisms and processes by which foreign market opportunities are exploited.

This study aims at providing exploratory insights into the initiative and capabilities of Chinese SMEs to develop and utilize diverse networks to support internationalization. Such network development and utilization efforts are fundamental to the analysis and explanation of Chinese firms’ internationalization patterns and outcomes. Extending from the existing network studies in the Chinese context that generally put emphasis on strong‐tie and ethnic‐oriented networks, this paper investigates and explains explicitly the use and effects of both strong‐ and weak‐tie networks in the international development of Chinese SMEs. Indepth case studies on four rapidly internationalized Chinese SMEs are conducted. The case findings demonstrate that weak‐tie networks are essential to the firms’ business development in foreign markets; and were proactively developed and utilized in the course of the firms’ development. The cases also provide alternative perspectives to the beliefs and values underpinning strong‐tie networks presumed in existing literature. The findings draw attention to the changing business values and approaches of the Chinese firms aiming at developing internationally. Managerial implications concerning the significant influence of effective networking on internationalization are pinpointed.

The founder of paperbackswap.com, Bobby Swarthout, developed the idea for his venture while he was a college student. As a student on a limited budget, he had become tired of paying high prices for textbooks. So he developed and launched an online textbook swapping service. Along with a small group of students, he managed to assemble a group of 12 colleges and universities across the United States to participate in textbook swapping. However, after a few months, very few students had used the site. By listening to the potential customers who chose not to participate, Bobby found out that there were too many easy substitutes for the swapping service (e.g. bookstore returns, half.com, efollett, etc.). These alternatives offered either greater convenience or cash in return for used books (especially appealing to students who did not pay for their books themselves), or other appealing features. However, Mr. Swarthout believed in his concept and also listened to the ‘voice-of-the-consumer’ (VOC) and moved his business idea into different consumer/product space: that of paperback books. Along with a few lead users attracted to his original idea, he refined the original idea, gathered resources (an angel who invested in the business) and added technological capabilities. One year later he launched paperbackswap.com. From inception, the firm embraced the VOC as the key tool in driving product development and improvement efforts. For paperbackswap.com listening to the VOC has become part of a closed-loop system where inputs from consumers are analysed and product improvements developed in response and where the loop is closed by listening to how consumers respond to product changes.

The previous decade has been characterized by emerging market firms expanding into international markets. This trend has led to scholars in the IB arena to grapple with the new phenomenon of emerging multinational enterprises (EMNEs), specifically the relationship between internationalization and performance of the EMNEs. This paper seeks to add to the literature by capturing the impact of firm resources on the internationalization‐performance relationship. Empirical analysis on a sample of 787 Indian manufacturing firms indicates that there is a non‐linear relationship between internationalization and performance. Findings also indicate that a firm’s capabilities in cost efficiency and marketing have a moderating impact on this relationship.

Research on export behaviour and the determinants of export performance of manufacturing firms abounds in the literature. By contrast relatively little research has been undertaken that focuses on service exporters despite the growing importance of service exports in most advanced industrialised countries. This paper compares the export behaviour and performance of service firms to those of manufacturing firms. The study is based on a survey of 155 small and medium size exporters from New Zealand. The results suggest that service exporters are distinctively unique in many respects and exhibit export behaviours that are different from exporters of merchandise. Generally, service firms have greater flexibility to adapt their products to the specific requirements of their customers, use direct export channels more often and are also more proactive than merchandise firms in the establishment of future export strategies. Overall, the size and commitment of service exporters have the greatest influence on their performance.