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Internationalization of Service Firms: the case of Computer-Related Services

2008, Etemad-Sajadi, Reza, Kostecki, Michel

This research based on interviews, questionnaires and case studies, attempts to identify the principal variables, which shape internationalization of computer-related (CR) service firms and to evaluate their impact on the firms' performance in international markets. What is distinctive about the firm's internationalization in the CR services sector and what do those differences imply for marketing strategies worldwide? What are the critical variables of success (or failure) for different mode(s) of entry? What is the CR service firms' perception of the geographical/cultural distance and the regulatory barriers in export market? What are the firms' rationales to engage in international activities? How do perception of the export market and motivations towards international activities influence the choice of the entry mode(s)? What are the distinctive characteristics of each CR sub-sector and what lessons can be drawn from their comparative assessment for the globalization process of CR services and services in general? The objective of this project is to contribute to the underlying research body of knowledge on service firms' internationalization and to provide guideline for CR service firms that undertake the globalization process. Introduction : Every period in economic history has its hero. The current digital revolution is brought about by the significant drop in cost and rapid expansion of power of digital devices such as computers and telecommunications. Today's digital world is a world where all kinds of computers, equipment and appliances are interconnected and functioning as one unit. Such complex systems cannot operate without a set of computer-related (CR) services which assume strategic role in the digital economy. This is a fascinating issue that is at the heart of the contemporary economy. The evolution of technologies through the progress made in the data processing and transmission have considerably decreased the physical and technical distance between the actors concerned. Hence the international development of service firms is almost an obligation imposed by the changes of the world economic environment and the tendency towards globalization of markets. Internationalization seems to be a permanent preoccupation for firms, especially in the CR services sector which has the characteristics of being relatively young and cosmopolitan. In the context of globalization, firms providing CR services have a particular place which renders the analysis of their internationalization process meaningful and interesting. As international trade in this sector is among the fastest growing areas of global trade, it offers a particularly promising field of investigation.