Services Mncs Expansion Theory And Applied Research

These years witness the rapid development in the service sector. Moreattention has been paid in both developed and developing countries. Theservice sector is regarded as the next economic engine after manufacturingin terms of its great impetus to the integration of the world economy. Due to the internationalization of the service sector, the servicetransnational company (TNC) plays an active role in the world economy.As for the rapid growth of service TNC in recent decades, it takes timefor people to become familiar with its development. Therefore, there isnot much thesis in this field, most of which is still kind of adjustmentof the classical TNC theory based on the research of manufacturing. Actually, the developmental step of service industry in China becomesunfavorable when it comes to face to face with the world competition.Domestic service market is becoming worldwide gradually, after Chinajoined the WTO. More and More service TNCs with considerable competenceflow into China. It is time for our domestic service companies to considerhow to enhance our own abilities and compete with foreign companies. Henceaccording to the lack of research in this aspect, it's necessary and urgentfor us to do thorough research on the service TNCs and figure out the keyto success. I hereby offer an expansion frame, two dimension common effects ,which may explain the expansion of service TNCs fundamentally. Evidencesare provided for the economy common effects and management common effectsof the expansion. The results suggest that focusing on profits, differentcompanies have different economy common effects and management commoneffects, which bring them different considerations and behavior aboutinternational expansion. The insight of companies from three typicalservice industries gives us further understanding about the frame. The main contents include nine parts: The foreword introduces the reason and purpose of the research as wellas the methodology that will be used. In the first part, I review the definition of service and its specialcharacter as well as the relative theories of service sector. VIIIAbstract In the second part, international service trade and foreign directinvestment are mentioned. From international service trade to foreigndirect investment, these internationalization steps make service TNCscome into being. In the third part, I analyze the differences between service TNCs andmanufacturing TNCs in order to extrude the particularity of service TNCs. In the fourth part, I review the researches in the expansion theoryof international services. The contribution and three step research pathare mentioned. My discussion is based on these researches. In the fifth part, I raise an expansion frame, two dimension commoneffects , which may explain the expansion of service TNCs fundamentallywith the view of both economy common effects and management commoneffects. In the sixth part, evidences are provided for the economy commoneffects of the expansion. The results suggest that focusing on profits,different service TNCs have different economy common effects, which bringthem different considerations and plans about international expansion. In the seventh part, I address the management common effects of theexpansion by discussing three key management sections, which arestructure, pricing and innovation. In the eighth part, the insight of companies from three typical serviceindustries (hotel, professional service and insurance) gives us furtherunderstanding about the frame. In the ninth part, several instructions, which are the applicationof the theory, are offered for Chinese service companies. From thediscussion, we may get some reference to the development of our serviceindustries.