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Management International Review

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01.11.2008 | Research Article

Entry Modes for Manufacturers’ International After-Sales Service: Analysis of Transaction-specific, Firm-specific and Country-specific Determinants

verfasst von: Professor Dirk Morschett, Hanna Schramm-Klein, Professor Bernhard Swoboda

Erschienen in: Management International Review | Ausgabe 5/2008

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Abstract and Key Results

This paper investigates which criteria influence a company’s entry mode choice for its after-sales service in a foreign country. With a focus on the decision between integrative and cooperative entry modes, an empirical study of 80 foreign entry mode decisions by German manufacturing companies identified determinants of particular importance for after-sales service.
Country-specific variables exert a dominant influence on entry mode choice. Country risk, fluctuations in demand, and the availability of suitable service partners increase the probability of choosing a cooperative entry mode. Cultural distance from the host country leads to integrative modes. As transaction-specific variables, a difficult service quality evaluation is shown to increase the likelihood of establishing wholly-owned subsidiaries, as are high resource requirements. Service as competitive advantage also leads to the internalization of the service-function. The companies surveyed are highly satisfied with the entry mode chosen for their after-sales service in foreign markets, which implies that managerial implications can be drawn from the results.

Vorheriger Artikel FDI Ownership Strategy: A Japanese-US MNE Comparison

Nächster Artikel Institutional Explanations of Cross-border Alliance Modes: The Case of Emerging Economies Firms

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Titel: Entry Modes for Manufacturers’ International After-Sales Service: Analysis of Transaction-specific, Firm-specific and Country-specific Determinants
verfasst von: Professor Dirk Morschett
Hanna Schramm-Klein
Professor Bernhard Swoboda
Publikationsdatum: 01.11.2008
Verlag: SP Gabler Verlag
Erschienen in: Management International Review / Ausgabe 5/2008
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI: https://doi.org/10.1007/s11575-008-0035-7

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