Service Firms’ International Entry-Mode Choice: A Modified Transaction-Cost Analysis Approach
Abstract
Some peculiar characteristics of service firms, such as low capital intensity and the inseparability of production and consumption, have necessitated the modification of the traditional transaction-cost framework used to study entry-mode choice. By relaxing some unduly restrictive assumptions of the conventional transaction-cost analysis (TCA) model, the paper argues that firms prefer to start with full-control modes. It postulates that...
Paper Details
Title
Service Firms’ International Entry-Mode Choice: A Modified Transaction-Cost Analysis Approach
Published Date
Jul 1, 1993
Journal
Volume
57
Issue
3
Pages
19 - 38
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