INTERNATIONALIZATION BY BUSINESS SERVICES - A METHODOLOGICAL CRITIQUEOF FOREIGN-MARKET ENTRY-MODE CHOICE

In this paper the work of geographers, economists, and management scie ntists in studying interregional and international expansion by servic e companies is reviewed. A critique is presented of some of the fundam ental methodological problems inherent in analysing foreign-market ent ry-mode choice. These are particularly apparent when studying the proc ess of business service-sector internationalisation. Issues discussed include inconsistencies in the definition of which entry decision to a nalyse; the level of aggregation to adopt when modelling mode choice; mode choice and cooperative organisational networks; different approac hes to measuring cultural distance and country risk; and the methodolo gies used to develop scales to represent the constructs relevant to in ternationalisation.