Selection of foreign market entry mode by knowledge-intensive soft-service companies : a case study of the staffing and recruitment industry in Norway and Sweden.

Due to the decreasing trade barriers the internationalization of companies today becomes more common, especially among service companies. In the area of services, it can be found that there are soft and hard services, and knowledge-intensive and not-knowledge-intensive services. This study is focusing on the internationalization process in knowledge-intensive soft-service companies. According to previous studies there is a lack of research on this part of the service industry concerning the foreign market entry mode decision and the factors influencing the choice of foreign market entry mode. When entering a foreign market there are several different factors influencing the choice of entry mode. The purpose of this study is to provide a better understanding of which entry modes are used by knowledge-intensive soft-service companies and what the entry mode decision is based on. In this study two research questions were designed to reach the research purpose. Based on the research questions a frame of reference was created, this was the base for the layout of the data collection. The research approach in this study is qualitative. The companies selected for this study are four staffing and recruitment companies, two from Norway and two from Sweden. The study shows and explains which entry modes these four companies adopt and what factors are influencing their choice of foreign market entry mode. The collected data from the four companies is presented, discussed and analyzed first case-by-case and then by a cross-case comparison, which then leads to the findings and conclusions of the study. The study gives a deeper insight into which entry modes that are used by knowledge-intensive soft-service companies and which factors that affect the decision of entry mode. All the companies in this study consider wholly owned subsidiaries to be the default entry mode and consider only wholly owned subsidiary or franchising as feasible entry modes. The factor that appears most important for staffing and recruitment companies in the choice of entry mode is the organizational culture, which is a result of the nature of the product. The organizational culture also affects the other factors influencing the choice of entry mode, such as the reputation and the need for control.Validerat; 20101217 (root