Client-Following and Market-Seeking Strategies in the Internationalization of Service Firms

Abstract

ABSTRACT Despite the growing importance of foreign market entry in service industries, it has been the subject of few conceptual or empirical studies. Thus, there is a real need for more studies on the entry of service firms into foreign markets. In this paper, we present seven propositions on foreign market entry strategies of service firms. This is done by combining the existing literature with three new case studies. Two different foreign market entry strategies are identified, namely, client-following and market-seeking. The different strategies arise out of the differences in resource exchange network of the firms. The differences between them are more prominent in the early years of international market entry. The study also shows that end users are not the only driving force behind international market entry by firms. Others, such as suppliers, also force foreign market entry.