Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust*
Year: 2003
Type: article
Abstract: ABSTRACT In this study, we suggest that disparities between service and manufacturing firms’ international entry mode choices can be explained by differences in their reaction to transaction cost based variables and by the influence of risk and trust propensity. We find that: (1) due to the investment intensive nature of manufacturing, environmental uncertainties and risk propensity influence manufacturers’ mode choices; while (2) behavioural uncertainties, trust propensity and asset specificity influence service providers’ entry mode choices because of the people‐intensive nature of services. Implications for future research are discussed.
Source: Journal of Management Studies
Authors: Keith D. Brouthers, Lance Eliot Brouthers
Institutions: Temple University, The University of Texas at El Paso
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1998107471