Explaining the internationalization process of Malaysian service companies

Abstract

International business literature has paid special attention to the study of internationalisation and entry mode strategies of firms from the manufacturing sector. Very few studies have been conducted that examine the international expansion of firms from the service industry. Today, the increasing involvement of service industries in the development of business activities has attracted significant attention. The rapid growth of the international presence of service firms in the international arena has created a new area of interest for scholars to investigate the issue in greater detail. This paper reflects an initial investigation of the pattern of internationalisation, motivating factors, and the choice of entry strategy made by Malaysian service firms. As a successful developing country with a fast growing economy, the Malaysian government has facilitated and encouraged the presence of its firms in international markets. This research utilizes a case study approach through in-depth interviews with key managers/executives in the selected Malaysian service firms to explain the internationalization pattern and behaviour of these firms. Suggestions for further research are discussed.