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Author: | Morschett, D. Schramm-Klein, H. Swoboda, B. |
Title: | Entry modes for manufacturers' international after-sales service: Analysis of transaction-specific, firm-specific and country-specific determinants |
Journal: | Management International Review
2008 : VOL. 48:5, p. 525-549 |
Index terms: | entry conditions after-sales service internationalization competitive strategy transaction costs manufacturing companies Germany |
Language: | eng |
Abstract: | This paper examines the criteria influencing a company's entry mode (hereafter as: e-md./e-mds.) choice (here as: e-m-c.) for its after-sales service in a foreign country, focusing on the decision btw. integrative and cooperative e-mds. Based on an empirical study of 80 foreign e-md. decisions by German manufacturing companies, country-specific variables exert a dominant influence on e-m-c. Country risk, demand fluctuations, and the availability of suitable service partners increase the probability of choosing a cooperative e-md. 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 etc. |
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