Study On International Entry Mode Choice Of Service Firms

These years the development of global economy gradually tends to service industry. More and more service firms have gone up on international stage, which attracts many scholars to research internationalization of service firms. This paper focuses on international entry mode choice of service firms.This paper is divided into five parts to expound the issues about international entry mode choice by service firms in detail. The first section explains the aim of this paper and defines some important conception. The second section analyzes the available entry modes by service firms and the different characteristics of each mode. The available entry modes by service firms are export, contract and investment modes that are the same as manufacturing industry. Each mode has the feature of control degree, resource commitment and dissemination risk. When choosing the entry mode we should weigh the advantages and disadvantages and find the reasonable uniting point. The third section introduces the present research on international entry mode choice in service sectors at home and abroad and gives composite review. The research can be divided into two schools: one is that the entry mode choice theory from manufacturing industry are not applicable to the service firms, the other is opposite, In order to resolve the argue the next section utilizes contingency theory and takes the service classification as important variable to conclude from theory deduction that traditional theories from manufacturing industry are applicable to the hard service firms but not to the soft service firms. About this result the paper gives empirical study on the entry mode choice behavior of famous service multinational corporations into Chinese market next. Finally, the paper analyzes the development of service industry in China, and points the necessary of international management by Chinese service firms. Following it, the paper takes the entry mode choice behavior of Chinese firms into the Great Britain as an example and finds the problems. Also it gives some advice for entry mode choice by Chinese service firms into foreign market.