A Review and Prospect on the Internationalization Process of Service Multinational Corporations


The internationalization of service industry, which is the main symbol of economic globalization, has entered a new era. As the practice pioneer of service industry internationalization, service multinational enterprises have deeply changed the development pattern of the world service industry, and impacted on the status and interests of the world industry chain. This study takes a systematic review about the internationalization process of service multinational corporations. This internationalization process consists of two portions, the process of service multinational corporations enter the international market and the operation process after entry. Then this study points out the future research prospect, in order to provide a research direction for extending the theory of internationalization process of multinational corporations.

Share and Cite:

Wang, L. and Chen, H. (2015) A Review and Prospect on the Internationalization Process of Service Multinational Corporations. Journal of Service Science and Management, 8, 77-84. doi: 10.4236/jssm.2015.81009.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Brouthers, K.D. and Brouthers, L.E. (2003) Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust. Journal of Management Studies, 40, 1179-1204.
[2] Sanchez-Peinado, E. and Pla-Barber, J. (2006) A Multidimensional Concept of Uncertainty and Its Influence on the Entry Mode Choice: An Empirical Analysis in the Service Sector. International Business Review, 15, 215-232.
[3] Sanchez-Peinado, E., Pla-Barber, J. and Hébert, L. (2007) Strategic Variables That Influence Entry Mode Choice in Service Firms. Journal of International Marketing, 15, 67-91.
[4] Beamish, P.W. and Lu, J.W. (2001) The Internationalization and Performance of SMEs. Strategic Management Journal, 22, 565-586. http://dx.doi.org/10.1002/smj.184
[5] Aharoni, Y. and Nachum, L. (2000) Globalization of Services: Some Implications for Theory and Practice. Routledge, Oxford.
[6] Hitt, M.A., BIierman, L., Uhlenbruck, K., et al. (2006) The Importance of Resources in the Internationalization of Professional Service Firms: The Good, the Bad, and the Ugly. Academy of Management Journal, 49, 1137-1157.
[7] Xue, Q.Z. and Zheng, Q.Q. (2002) The Emergence and Expansion Motivation of Service Multinational Corporation. World Economy Study, 5, 52-57.
[8] Liu, M.H. (2007) Global Expansion of Service Transnational Corporations: Motivation and Route Choosing. International Economics and Trade Research, 11, 34-38.
[9] Zhang, X. and Qian, H.Y. (2012) The Global Expansion of Service Sectors and Its Effect: A Factor Study. Journal of Nanjing University, 4, 60-67.
[10] Cai, X. (2006) On the Entry Mode of the Services Multinationals. Journal of Shanghai Business School, 7, 22-26.
[11] Song, M.X., Di Benedetto, C.A. and Zhao, Y.L. (1999) Pioneering Advantages in Manufacturing and Service Industries: Empirical Evidence from Nine Countries. Strategic Management Journal, 20, 811-835.
[12] Magnusson, P., Westjohn, S.A. and Boggs, D.J. (2009) Order-of-Entry Effects for Service Firms in Developing Markets: An Examination of Multinational Advertising Agencies. Journal of International Marketing, 17, 23-41. http://dx.doi.org/10.1509/jimk.17.2.23
[13] Wu, X.Y. and Li, H. (2012) Influencing Factors on Imitation Behavior of Internationalization of Service Multinational Corporation. Proceedings of the International Joint Conference on Service Sciences, Shanghai, 24-26 May 2012, 266- 269.
[14] Laanti, R., McDougall, F. and Baume, G. (2009) How Well Do Traditional Theories Explain the Internationalisation of Service MNEs from Small and Open Economies?—Case:National Telecommunication Companies. Management International Review, 49, 121-144.
[15] Sethi, D. and Guisinger, S. (2002) Liability of Foreignness to Competitive Advantage: How Multinational Enterprises Cope with the International Business Environment. Journal of International Management, 8, 223-240.
[16] Kundu, S.K. and Merchant, H. (2008) Service Multinationals: Their Past, Present, and Future. Management International Review, 48, 371-377. http://dx.doi.org/10.1007/s11575-008-0021-0
[17] Manning, S., Ricart, J.E., Rique, M.S.R. and Lewin, A.Y. (2010) From Blind Spots to Hotspots: How Knowledge Services Clusters Develop and Attract Foreign Investment. Journal of International Management, 16, 369-382.
[18] Inoue, H. (2009) Several Characteristics of Service Multinational Corporations. Centre for International Business Studies, 1-31.
[19] Goerzen, A. and Makino, S. (2007) Multinational Corporation Internationalization in the Service Sector: A Study of Japanese Trading Companies. Journal of International Business Studies, 38, 1149-1169.
[20] Rugman, A.M. and Verbeke, A. (2008) A New Perspective on the Regional and Global Strategies of Multinational Services Firms. Management International Review, 48, 397-411.
[21] Strom, P. and Wahlqvist, E. (2010) Regional and Firm Competitiveness in the Service-Based Economy: Combining Economic Geography and International Business Theory. Journal of Economic and Social Geography, 101, 287-304.
[22] Capar, N. and Kotabe, M. (2003) The Relationship between International Diversification and Performance in Service Firms. Journal of International Business Studies, 34, 345-355.
[23] Contractor, F.J., Kundu, S.K. and Hsu, C.-C. (2003) A Three-Stage Theory of International Expansion: The Link between Multinationality and Performance in the Service Sector. Journal of International Business Studies, 34, 5-18.
[24] Contractor, F.J., Kumar, V. and Kundu, S.K. (2007) Nature of the Relationship between International Expansion and Performance: The Case of Emerging Market Firms. Journal of World Business, 42, 401-417. http://dx.doi.org/10.1016/j.jwb.2007.06.003
[25] Abdelzaher, D.M. (2012) The Impact of Professional Service Firms’ Expansion Challenges on Internationalization Processes and Performance. The Service Industries Journal, 32, 1721-1738.
[26] Javalgi, R.G. and Martin, C.L. (2007) Internationalization of Services: Identifying the Building-Blocks for Future Research. Journal of Services Marketing, 21, 391-397.

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.