Service embeddedness and its role in a firm’s internationalisation process: An Australian perspective

Purpose – Perceived differences in the composition of goods and services forms the basis of a significant degree of analysis of the firm internationalisation process. In particular, product inseparability is highlighted as a distinguishing feature of service offerings and purports to explain the different approaches to internationalisation strategy adopted by service firms. The research, however, proposes that the division of goods and services into distinct products is outmoded. Rather, it is important to understand the extent of service components that embody, or are embedded in, a product offering. The authors argue that this “service embeddedness” influences the process by which a firm internationalises. The paper aims to discuss these issues. Design/methodology/approach – Based on ten case studies of Australian international firms, this paper examines the impact of service embeddedness on a firm’s internationalisation process. Findings – The research underlines that firms approach internationalisatio...