TY - JOUR
T1 - Foreign market entry modes for servitization under diverse macroenvironmental conditions
T2 - taxonomy and propositions
AU - Agnihotri, Arpita
AU - Bhattacharya, Saurabh
AU - Yannopoulou, Natalia
AU - Thrassou, Alkis
N1 - Publisher Copyright:
© 2022, Emerald Publishing Limited.
PY - 2023/12/4
Y1 - 2023/12/4
N2 - Purpose: The article explores how servitization influences firms' foreign market entry mode decisions. This relationship is researched under the contingent effect of macroenvironmental factors in the host country, namely, market attractiveness, institutional environment and national culture differences between the home and host country. Design/methodology/approach: The study employs a conceptual framework typology that interrelates, contextualizes and conceptualizes extant knowledge to develop explicit propositions. Findings: Based on the extant literature, using a 2 × 2 matrix, the authors delineate the influence of two dimensions of servitization on entry mode decisions: customer relationship focus and digitalization focus. They conceptualize that relationship management and digitalization-based servitization have an antagonistic effect on the need for entry mode resource commitments, and macroenvironmental factors' favorability moderates this tension. Research limitations/implications: The study extends and incorporates the servitization literature into the context of international marketing by exploring the combined effect of the two most significant dimensions of servitization, i.e. investment in customer relations versus investment in digitalization on entry mode, thus delivering valuable new insights and perspectives, as well as explicit propositions toward empirical testing. Practical implications: The authors’ framework increases foreign market managers' awareness of how servitization drives entry mode decisions of firms in international markets. Also, the framework explicates how the host country's market attractiveness, institutional environment and difference with the home country's national culture tangibly influence the relationship. Originality/value: The study provides novel insights into the implications of servitization on international marketing, particularly regarding foreign market entry mode. The study also elucidates the combined effect of two servitization dimensions, i.e. customer relations and digitalization – a critical research area in which the literature is scant.
AB - Purpose: The article explores how servitization influences firms' foreign market entry mode decisions. This relationship is researched under the contingent effect of macroenvironmental factors in the host country, namely, market attractiveness, institutional environment and national culture differences between the home and host country. Design/methodology/approach: The study employs a conceptual framework typology that interrelates, contextualizes and conceptualizes extant knowledge to develop explicit propositions. Findings: Based on the extant literature, using a 2 × 2 matrix, the authors delineate the influence of two dimensions of servitization on entry mode decisions: customer relationship focus and digitalization focus. They conceptualize that relationship management and digitalization-based servitization have an antagonistic effect on the need for entry mode resource commitments, and macroenvironmental factors' favorability moderates this tension. Research limitations/implications: The study extends and incorporates the servitization literature into the context of international marketing by exploring the combined effect of the two most significant dimensions of servitization, i.e. investment in customer relations versus investment in digitalization on entry mode, thus delivering valuable new insights and perspectives, as well as explicit propositions toward empirical testing. Practical implications: The authors’ framework increases foreign market managers' awareness of how servitization drives entry mode decisions of firms in international markets. Also, the framework explicates how the host country's market attractiveness, institutional environment and difference with the home country's national culture tangibly influence the relationship. Originality/value: The study provides novel insights into the implications of servitization on international marketing, particularly regarding foreign market entry mode. The study also elucidates the combined effect of two servitization dimensions, i.e. customer relations and digitalization – a critical research area in which the literature is scant.
KW - Customer relations
KW - Digitalization
KW - Entry mode
KW - Macroenvironment
KW - Servitization
UR - http://www.scopus.com/inward/record.url?scp=85139427503&partnerID=8YFLogxK
U2 - 10.1108/IMR-09-2021-0287
DO - 10.1108/IMR-09-2021-0287
M3 - Article
AN - SCOPUS:85139427503
SN - 0265-1335
JO - International Marketing Review
JF - International Marketing Review
ER -