Risks in the internationalization process of service firms: a qualitative multiple-case study from an emerging market
Weber Henrique Radael, Gustavo AbibPurpose
Analyze how internationalization risks are perceived in the internationalization process for different service segments, such as hard services, soft services and professional service firms (PSFs).
Design/methodology/approach
This study uses a qualitative, exploratory approach guided by a multiple-case study strategy, involving 15 service firms from an emerging market. The processual analysis included initial categorization based on theoretical frameworks, cross-case comparisons and continuous reviews, aiming to identify emerging patterns and ensure credibility.
Findings
Soft services/PSFs and hard services use the virtual mode in their internationalization processes. While country risk was the most significant for soft services/PSFs, hard services highlighted both country risk and cultural risk. Despite the high cultural complexity, cultural risk was not considered prohibitive, unlike country risk, which posed greater obstacles.
Research limitations/implications
Participants were reluctant to discuss mistakes in commercial risk, unlike macro risks; and risk perception is subjective, making this qualitative, exploratory research nongeneralizable, especially the finding that soft services/PSFs do not face higher internationalization risks than hard services.
Practical implications
Provide insights for managers of service firms on how different types of risks are perceived and mitigated during internationalization, particularly in contexts shaped by digitalization and the growing adoption of virtual entry modes.
Originality/value
Identification of the virtual mode for pure service firms, such as soft services and PSFs, contradicting prior literature that emphasized greater physical presence for these services.