Title: Service embeddedness and its impact on the value chain and firm internationalisation: in search of a framework

Authors: Robert Jack, Sharif As-Saber, Ron Edwards

Addresses: Department of Management, Monash University, Clayton Campus, Wellington Road, Clayton, Victoria 3800, Australia. ' Department of Management, Monash University, Clayton Campus, Wellington Road, Clayton, Victoria 3800, Australia. ' Department of Management, Monash University, Clayton Campus, Wellington Road, Clayton, Victoria 3800, Australia

Abstract: Internationalisation theory has largely been concerned with analysing firm internationalisation strategy and entry mode choice from a manufacturing firm|s perspective. Nonetheless, as the composition of a firm|s product usually contains both tangible and service characteristics, it is important to understand the extent of service components that embody, or are embedded in, a product. This paper introduces the concept of service embeddedness, which is defined as the service characteristics existing in all products and are usually incorporated to add value to a product offering. From this perspective, the paper continues to outline a value chain that shows how value is created through a series of activities similar, but somewhat distinguishable, from the value chain generally applied to manufactured goods. A conceptual model is introduced to determine the likely impact that service embeddedness may have on a firm|s value-creating activities and its choice of foreign market entry mode.

Keywords: product characteristics; service embeddedness; value chain management; VCM; internationalisation; entry modes; embedded services; value creation; market entry.

DOI: 10.1504/IJVCM.2006.009022

International Journal of Value Chain Management, 2006 Vol.1 No.1, pp.33 - 43

Published online: 13 Feb 2006 *

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