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international business review

International Business Review 17 (2008) 442451 www.elsevier.com/locate/ibusrev

The role of service embeddedness in the internationalisation process of manufacturing rms

Robert Jacka,, Sharif As-Saberb, Ron Edwardsc, Peter Buckleyd
a

Faculty of Business and Enterprise, Swinburne University of Technology, Hawthorn Campus, Hawthorn 3122, Australia b Department of Management, Monash University, Clayton Campus, Clayton 3800, Australia c School of Business and Economics, Monash University, Malaysia Campus, Bandar Sunway 46150, Malaysia d Centre for International Business, University of Leeds, Leeds LS2 9JT, UK Received 6 July 2005; received in revised form 20 June 2007, 14 October 2007; accepted 2 February 2008

Abstract Over the last decade the growth of service rms, and their internationalisation, has attracted considerable attention from researchers, with a special focus on characteristics that distinguish services from goods. However, as the composition of a rms product can contain both good and service elements, this paper argues that it is somewhat misleading to categorise a product simply as either a good or a service. Manufactured goods often contain client-related services embedded in them. Further, the nature of these embedded services may vary with respect to their degree of separability of production and consumption. Based on several case studies of Australian manufacturing subsidiaries in the UK, this paper examines the impact of inseparable embedded services on a rms entry-mode choice. It reveals that the extent and nature of embedded services have a considerable impact on a rms choice of foreign entry mode. The research ndings are likely to contribute to the existing marketing and internationalisation literature. Crown Copyright r 2008 Published by Elsevier Ltd. All rights reserved.
Keywords: Entry modes; Firm internationalisation; Goods; Embedded services; Product packages; Degree of separability

1. Introduction Early research into the internationalisation process of rms primarily focused on manufacturing rms producing tangible goods (Buckley, Pass, & Prescott, 1992; Clark & Rajaratnam, 1999; Gronroos, 1999; Lovelock, 1999). Subsequently, scholars considered the internationalisation process of service rms, focusing on unique service characteristics (Bell, 1995; Bryson, 2001; Cicic, Patterson, & Shoham, 1999; Patterson, Ruyter, & Wetzels, 1999). In particular, the extent or degree of separability of production and consumption has been highlighted as a key difference between a service and a good and an essential determinant of how services can be delivered to customers in domestic and overseas markets (Erramilli & Rao, 1993; Lovelock & Yip, 1996; Roberts, 1999). However, considerable care is needed to dene goods and services. According to Daniels (2000), Dunning (1989), Giarini (1994) and Gronroos (1999) there are few examples pure goods or
Corresponding author. Tel.: +61 3 9214 8053; fax: +61 3 9819 2117.

E-mail address: rjack@swin.edu.au (R. Jack). 0969-5931/$ - see front matter Crown Copyright r 2008 Published by Elsevier Ltd. All rights reserved. doi:10.1016/j.ibusrev.2008.02.006

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services in existence. They argue, rather than relying on simple categorisations of goods and services, it is more realistic to consider products containing combinations of good and service elements. From this perspective, product packages or offerings are the terms used to describe the combination of the good and servicerelated elements that manufacturers tend to offer to their clients. For example, some goods require customised design before they are produced, and may be supported by services such as installation, commissioning, guarantees and post-sales service. A product package containing a tangible good embedded with inseparable services may require the rm to interact directly with its customers. Previous studies have recognised the impact of separability or simultaneity of production and consumption of services on the choice of a rms foreign entry mode. However, they primarily have looked at this issue from a service rm perspective (Cardone-Riportella & Cazorla-Papis, 2001; Clark & Rajaratnam, 1999; Gronroos, 1999; Lovelock, 1999). From a manufacturing rm perspective, this paper seeks to address how the separability of embedded services affects the rms choice of foreign entry mode. In order to investigate this issue and to allow a more sophisticated understanding of how service embeddedness inuences the rm internationalisation process, this research adopts a qualitative approach and examines 18 Australian manufacturing subsidiaries operating in the UK. The research is likely to deepen the understanding of product composition, and its impact on internationalisation strategy by examining how the degree of separability of services embedded in manufactured goods inuences the modus operandi chosen by the rm to enter international markets. 2. Service embeddedness and rm internationalisation: an overview Researchers have dened a service as an experience or action that brings about a change in a person or a good (Daniels, 2000; Giarini, 1994; Roberts, 1999; Stare, 2002). Characteristics such as intangibility, inseparability, variability and perishability have been used to make a distinction between services and goods (Berry, 1984; Eiglier, Langeard, Lovelock, Bateson, & Young, 1977; Gabbott & Hogg, 1994; Gronroos, 1999; Ruyter, Birgelen, & Wetzels, 1998). Inseparability of production and consumption has been given particular emphasis as a point of difference (Erramilli & Rao, 1993, Gronroos, 1999; Grubal, 1987). Unlike the separable production and consumption associated with a good, a high degree of human interaction is often required between the provider and the user for a service to be delivered successfully. Although there is an acknowledgement that goods and services have different characteristics, some researchers question whether simple distinctions should be made between goods and services and whether they are mutually exclusive product categories (Bowen, Siehl, & Schneider, 1989; Sanchez-Peinado & Pla-Barber, 2006; Shostack, 1977; Vargo & Lusch, 2004; Wyckham, Fitzroy, & Mandry, 1975). These researchers explain that goods and services may, at times, display similar characteristics. For example, some services do not require interactions to be successfully delivered to clients. These services can be embodied in a physical format, such as a computer disk or a consultants report, and delivered to clients for their ultimate use. Like a good, these separable services can be rstly produced and later consumed. Services can, therefore, be divided into separable and inseparable categories (Erramilli & Rao, 1993; Stare, 2002). The idea, therefore, of a broader understanding of goods and services is relevant, as manufacturing rms often embed their goods with service elements (Anderson & Narus, 1995; Gronroos, 1990; Lovelock & Yip, 1996). For example, in order to remedy defects or to increase the lifespan of a good, a rm may perform postpurchase services. Such service helps to ensure the optimum use of the product and maximises customer satisfaction (Porter, 1985; Robinson, Clarke-Hill, & Clarkson, 2002; Stabell & Fjeldstad, 1998; Walter & Lancaster, 2000). According to Aharoni, (2000), Giarini, (1994), Levitt (1972), and Lichtenthal and Long (1998) the more complex the good the higher the service component. Embedded services may be responsible for extending the value of a good beyond that of its tangible features. Dunning (1989) links the concept of these services directly to a rms achievement and maintenance of competitive advantage, implying that their value adding nature contributes to the rms ownership advantage. This perspective is also emphasised by Gronroos (1999,p. 293): What we see today is that a growing number of manufacturing businesses have to vitalise the service elements of their offerings or add new services to goods-based offerings in order to stay competitive.

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The separability of embedded services has important implications for the way a manufacturing rm delivers its product package. Embedded services such as installation, commissioning and some on-going service support require the rm to interact directly with its clients. However, other embedded service components, such as online assistance and printed and digitised instruction materials, may be separable (Ekeledo & Sivakumar, 2004). Manufacturing rms, therefore, may nd that their product packages contain goods, separable services and inseparable services. As a result, a manufacturing rms productive output can contain elements with different degrees of separability within one comprehensive product package. Their products are therefore bundles of separable and inseparable components. According to Ekeledo and Sivakumar (1998), the nature of a service is considered as a key determinant of foreign market entry-mode choice. Consequently, the extent of embedded services is likely to have an impact on a manufacturing rms entry-mode decision. However, the literature on the rm internationalisation process is yet to fully recognise the changing perception of product composition. Theories developed to explain rm internationalisation have focused primarily on manufacturing rms producing goods, without giving much consideration to the service components embedded in them. The assumption is that manufacturers produce tangible products. Both Johanson and Vahlnes (1977, 1990) Uppsala model and Cavusgil S. Tamer (1980) establishment chain have been criticised for their lack of applicability to services. As these process models are derived from empirical research based on the behaviour of manufacturing rms, their underlying assumption is to look into the delivery of goods across national boundaries (Andersson, 2002; Bridgewater, 1999; Javalgi, Lawson, Gross, & White, 1998; Wilkinson & Brouthers, 2006). When other researchers have considered the relevance of process models to services, their analysis only included pure services (Bell, 1995; Cardone-Riportella, & Cazorla-Papis, 2001; Ekeledo & Sivakumar, 2004; Roberts, 1999; Sharma, 1988; Sharma & Johanson, 1987). Their research highlights that product separability is an important factor when designing internationalisation strategy. For an inseparable service to be delivered successfully, a rm must skip the export stage when it begins its internationalisation process. The product nature, therefore, will prompt a rm to enter into a market directly via a contractual arrangement and often through foreign direct investment without following an incremental approach to internationalisation. Researchers such as Buckley, Newbould, and Thurwell (1977) and Welch and Luostarinen (1988) have termed these exceptions to the incremental approach to internationalisation as leapfrogging. Such a strategy may also be required by manufacturing rms producing goods with embedded services. However, the extent and the nature of such embeddedness will determine the actual need for any leapfrogging. In this regard, the degree of interaction between the provider of the embedded service and its customers is likely to have a bearing on the rms entry-mode choice. This is reected in a study conducted by Cardone-Riportella and Cazorla-Papis (2001) that emphasises that the intensity or the level of interaction required for service delivery is directly linked to the foreign market entry modes (see Table 1). This analysis implies that extensive customer interaction (i.e. a product with a low degree of separability) requires a major local presence either through a contractual arrangement (such as licensing and franchising), or through foreign direct investment (Buckley et al., 1992; Ekeledo & Sivakumar, 2004; Erramilli, 1990; Sampson & Snape, 1985). Still, the research undertaken to analyse the process of internationalisation among service rms assumes a dividing line between goods and services, and relies heavily on the presumption of distinctiveness in individual

Table 1 Frequency of interactions and entry mode choice Producer and customer interaction Low Medium High Adapted from: Cardone-Riportella and Cazorla-Papis (2001). Mode of entry Export Alliances and joint ventures Foreign direct investment

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Product package Embedded Core product (Manufactured good)

services

Degree of separability of the embedded service delivery and its consumption

Choice of foreign market entry mode

Fig. 1. A conceptual model of the impact of service embeddedness on entry-mode choice.

service offerings (Contractor, Kundu, & Hsu, 2003; Gronroos, 1999; Roberts, 1999; Stare, 2002). There has been very little consideration of whether similar service characteristics could also be found in manufactured goods, with implications for the manner in which the rm may deliver its products internationally. The current paper argues that since manufactured goods can be embedded with interactive or inseparable services to facilitate their use or to enhance their performance, this factor should feature in the theory of internationalisation. As manufacturers increasingly develop their products as packages comprising both good and embedded service components, the efcient delivery of these packages across international markets may determine the success of the rms internationalisation process. If service rms providing inseparable services enter international markets directly, then manufacturers may also require similar entry modes delivering their product packages. Based on the above discussion, a conceptual model has been developed from a manufacturing rm perspective (see Fig. 1). The model depicts the relationship between the service embeddedness of a core manufacturing product (manufactured good) and its international entry-mode strategy, with the relationship moderated by the degree of separability of the embedded service elements. The model seeks to portray the manner in which the degree of separability of an embedded service may inuence the entry mode the rm chooses to serve foreign markets. An embedded service with a low degree of separability will necessitate the rm to interact directly with its customers, thereby requiring the rm to have a direct presence in foreign markets. 3. Research method The current research aims to explain the role of inseparability of services embedded in manufactured goods in determining the foreign entry-mode strategy of manufacturing rms. To achieve this objective, the research method must be one that lends itself to both exploration and theory building. This objective makes qualitative research, a particularly attractive research tool as it seeks to explain the relationship between a rms product characteristics and its internationalisation strategy. It is a complex phenomenon. Understanding such an intricate relationship calls for direct contact with the respondents. The context of the study is important here. The qualitative method allows researchers to understand the context-specic depth of a phenomenon (Bamberger, 2000). This method also allows the researcher to investigate a contemporary phenomenon (product composition) within its real-life context (rm internationalisation) (Yin, 2003). As such, it is likely to provide a better understanding of the dynamics of

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the internationalisation strategy pursued by manufacturing rms. A qualitative, case study-based research technique using in-depth, face-to-face interviews can provide a rich, focused and realistic account of the impact of embedded services on the internationalisation process of manufacturing rms. Data was collected from 18 UK-based Australian manufacturing subsidiaries. Although there is no comprehensive directory of Australian manufacturers operating in the UK, organisations such as Australian Business in Europe (ABIE) and the Australian Trade Commission (Austrade) ofces in the UK and in Australia were approached to identify Australian owned manufacturing subsidiaries operating in the UK. Subsequently, a total of 25 Australian-owned manufacturing subsidiaries were identied. Each of these 25 rms was then approached to be a part of this research endeavour. Eighteen agreed to participate in the study. The participating rms varied in size with an average of 500 employees. They produce a diverse range of goods that include chemicals, food and beverages, building and construction materials and household products. Most of the subsidiaries studied (60%) have been operating in the UK for more than 20 years. Chief Executive Ofcers (CEOs) were chosen to be the most appropriate people for the interview, as it was assumed that they would be able to appreciate the strategic reasons behind the entry-mode decision. Face-toface, semi-structured interviews were conducted. On average, each of the interviews took 45 min and was recorded on audiotape. The 18 CEOs were encouraged to elaborate and exemplify their answers. Content analysis of words, themes and omissions was performed. For the sake of condentiality, the identities of the participating rms and their CEOs were not revealed. The interview protocol was designed to gather information in relation to the nature of Australian foreign direct investment (FDI) in the UK with specic emphasis on the rationale for adopting FDI as an entry mode. It also sought to understand whether service components embedded in the nal product offerings had an impact on the entry-mode decision. In doing so, all CEOs were asked to explain the extent of service embeddedness and the separability of each of their product offerings. The aim was to ascertain whether producing goods with embedded service components required the rms to interact directly and continuously with customers. Depending on the nature of the response, these service components were categorised either as low, high or medium in terms of their degree of separability. Subsequently, the CEOs were asked whether service embeddedness, and its degree of separability, had an impact on the companys existing foreign markets entry-mode choice, as well as on future international market expansion. 4. Findings and discussion Table 2 represents a summary of ndings based on the interview data in relation to the perceived impact of service embeddedness and entry-mode choice. Columns II, III and IV provide some understanding with respect to the nature and characteristics of the product packages offered by the UK subsidiaries. Column II identies the type of manufactured good (core product) produced by each subsidiary. Column III indicates the client-related service characteristics embedded in manufactured goods. Twelve rms, or twothirds of the respondents, identied service components embedded in, or with, their core product (manufactured good). The remaining six rms did not consider embedded services as a signicant feature of their product. The service element was, at most, minimal and had no inuence on their delivery options. The embedded service components range from the installation of the product (subsidiaries 1, 3 and 17) to specialist advice (subsidiaries 2, 5, 8, 11, 12, 14, 15, and 18). For four of the rms (subsidiaries 11, 12, 15 and 18), this specialist advice involves the rm interacting directly with customers. In one case (subsidiary 5), it involves interacting with alliance partners who are responsible for installing the manufactured good. Based on ndings listed in Columns II and III, Column IV describes the degree of separability of the embedded service. Of the 12 rms with embedded service components, 10 rms clearly reveal that they have to interact directly, and often continuously, with their users (subsidiaries 2, 3, 5, 8, 11, 12, 14, 15, 17 and 18). Accordingly, the degree of separability of these embedded services is classied as low. The remaining two rms (subsidiaries 1 and 4) offer goods with embedded service components which did not require any such interactions (these include written/digitised operating instructions). Consequently, the degree of separability of these embedded services is classied as high. Despite an expectation from the researchers of having responses falling in between the two (medium), no respondent indicated the degree of separability as being medium.

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R. Jack et al. / International Business Review 17 (2008) 442451 Table 2 Impact of service embeddedness on entry mode choice of Australian manufacturing rms operating in the UK I Australian manufacturing subsidiaries in the UK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 II Product package Type of manufactured good Outdoor household equipment Plumbing products Outdoor household equipment Furnishing Safety equipment Concrete products Concrete products Chemicals Minerals Brewing Chemicals Safety equipment Food ingredients Chemicals Plumbing Concrete products Outdoor household equipment Electrical products Type of embedded service III IV Degree of separability embedded service High Low Low High Low N/A N/A Low N/A N/A Low Low N/A Low Low N/A Low Low V Effect on entry mode choice VI Effect on future market expansion 447

Written installation instructions Installation and expert advice Installation Written instructions Advice given to installers of the rms products Minimal Minimal Specialist advice Minimal Minimal Specialist advice Specialist advice Minimal Specialist advice Specialist engineering advice Minimal Delivery and installation Professional advice

No Yes Yes No Yes No No Yes No No Yes Yes No Yes Yes No Yes Yes

No Yes Yes No Yes No No Yes No No Yes Yes No Yes Yes No Yes Yes

N/A not applicable.

The importance of embedded service components with a low degree of separability was highlighted by the 10 rms as forming an essential part of their product offerings. Some went even further and considered it as the most important element of their product packages and their market positioning. One of the respondents reected this view in the following manner: The critical factor is sales and service. The manufacturing component is fairly low. The major limit on the companys growth is not manufacturing capacity but availability of sales/support people to visit the customers premises to x problems (subsidiary 11). A good with a set of complex technical and operating features may require constant interaction between its producer and end users. Sometimes, the development of a product may also require a customers opinion, particularly with custom-made products. In such cases, simple instruction booklets are not enough to meet a customers needs. This is reected in a comment made by the respondent from subsidiary 18 (an electrical product manufacturer): The customers expect us to do the development work on their behalf. We couldnt just advise them on how to simplify their electrical systems. Ongoing consultation is an essential requirement of our product support system. Our engineers talk to theirs a lot. This sort of free service is essential to our product. It is not just a supply operation. Product packages offered by subsidiaries 3 and 17 include not only manufacturing the goods to customers specications, but also installation of the good within a desired time frame. Both rms assess this embedded

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service as a key success factor in the UK market. In this regard, the respondent from subsidiary 17 mentioned: We tend to be more service oriented than English companies. We deliver service in two different wayswe deliver and install the product, and if a customer is having trouble we will be there within 48 h. This approach is consistent with the marketing literature which explains that manufactured products are typically surrounded by supplementary or embedded services (Anderson & Narus, 1995; Daniels, 2000; Giarini, 1994; Gronroos, 1999; Illeris, 1996). The research highlights the importance rms place on services that complement the manufactured goods they produce. Column V indicates whether embedded services inuenced the rms choice of entry mode when entering the UK market. Column VI provides an assessment of the importance of the service component in any future market expansion and possible entry mode. Columns V and VI, thereby, assist in the analysis by highlighting the relationship between the degree of separability of embedded services and entry-mode choice. All 10 rms with inseparable embedded service components had necessarily accommodated the inseparability when choosing their respective foreign entry modes (Columns IV and V). The respondents representing these 10 rms stated that despite being a manufacturer of tangible goods, inseparable service activities embedded in the core products required them to interact directly with their customers. The need for such on-going interaction was emphasised by one of the respondents (subsidiary 5): A problem with producing in Australia (and selling it in the UK) is the time delay. Given our product type (safety equipment), we need to be ever vigilant of the workmanship and the delivery and installation of the product. Very often installers need an answer to a problem immediately. The installer has a lot of responsibility. However, a close supervision of the job and contacts with customers are often needed for a quality outcome. A similar view was expressed in response from another CEO (subsidiary 3) who emphasised that it had been the importance of the delivery of the product package, (inclusive of inseparable embedded services) within a stipulated period of time that had prompted the rm to establish a subsidiary in the UK. This rm observes a rulecomplete the task of any installation or repair service within 2 weeks of the rst order/complaint from the customer. In summary, rms with product packages containing a low degree of service separability had to establish foreign facilities using a direct entry mode to supply their products efciently. This nding is consistent with literature on how product characteristics affect a rms internationalisation strategy. Researchers (Bryson, 2001; Cardone-Riportella & Cazorla-Papis, 2001; Cicic et al., 1999; Erramilli & Rao, 1993; Stare, 2002; Welch & Luostarinen, 1988) have concluded that inseparability of production and consumption, i.e. a high level of interaction between the provider and the user, may require a direct presence in a foreign market. These circumstances restrain the rm from adopting any arms length arrangements such as exporting. Manufacturers with highly inseparable, embedded service components in their products must also enter foreign markets directly. One of the respondents (subsidiary 5) emphasised the importance of proximity of production facilities to the end users because of the delivery of inseparable embedded services: ylimits apply to how far we can extend our service. It only takes a day to get our people to any one customer in Europe (from our UK base). Further information was sought from respondents regarding the role of service embeddedness in their entrymode decisions for future foreign market expansion (other than the UK). As indicated in Column VI, the same set of 10 rms with inseparable embedded service components revealed that future entry-mode decisions would be affected by the inseparability of their embedded services. The 10 rms that described their embedded services as inseparable stated that the inseparability was the primary reason for choosing FDI as their entry mode in the UK market. The results support the conceptual model by highlighting the relationship between the service embeddedness of a product and the rms entry mode, and this is moderated by the degree of separability of the embedded service element. This nding is consistent with studies conducted by Edwards and Buckley (1998) and Turnbill (1987) that emphasised the importance of strategic decision making as one of the determinants of a rms entry-mode choice. The rms stated that embedded services comprised an essential part of their product package and explained that this was an important strategic consideration in their choice of foreign market entry mode. The research ndings

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suggest that the presence of inseparable embedded service components in a manufactured good make exporting inappropriate. As such, the research provides a more comprehensive understanding of products as a package (incorporating both good and service components) and recognised the role that service embeddedness plays in the choice of foreign entry mode. From this perspective, this research adds a new dimension to the marketing and international business literature. 5. Limitations The limited population of Australian manufacturing subsidiaries in the UK (25) made it possible to adopt a qualitative survey. However, of the 25 subsidiaries identied by the researchers, the reluctance of seven rms to participate made the number even smaller (18). Therefore, the rm level data has been sourced from a relatively small number of manufacturing rms within a one-country setting, compromising the generalisability of the research ndings. 6. Future research direction and academic and managerial implications The current research aims to enrich the literature on the rm internationalisation process by giving due emphasis to the concept of service embeddedness in products, the degree of separability of these service elements, and how this may inuence the internationalisation of the rm. The major theories developed to explain the internationalisation of rms have been focused either on manufacturing or service rms. Several researchers have proposed that characteristics unique to certain services may mean that traditional internationalisation theories have little or no relevance to specic service sectors. Consequently, the current research seeks to address this challenge. It aims to look beyond simple distinctions between goods and services to a more comprehensive concept of product packages, and uses this concept to provide a better understanding of the internationalisation process of rms. The goal for future research will be to use the conceptual model as a basis for further empirical studies involving international manufacturing and service rms. The research ndings would allow the commissioning of a more detailed and comprehensive analysis involving a larger number of rms in more than one country. Such research would also pave the way for data triangulation and greater generalisability. Future research may also attempt to compare and contrast varying degrees of separability across both manufacturing and service rms and their impact on the internationalisation process. In order to capture a more comprehensive view of how embedded service components inuence the rms internationalisation process, the research may also be extended to include rms at various stages of internationalisation, viz., exporting, strategic alliances including joint ventures and FDI. Industry-specic variations with respect to service embeddedness also warrant study. The research ndings also have important managerial implications. The choice of an appropriate entry mode has a direct bearing on a rms success in a foreign location (Terpstra & Sarathy 1994; Root, 1994). Managers need to give careful consideration to the successful delivery of all components of their product packaged when assessing international markets for entry. 7. Conclusion In the internationalisation literature a distinction between goods and services is often made and the attributes that differentiate services from goods are emphasised. However, it is somewhat misleading to classify a product simply either as a good or a service. Rather, it is important to understand that product offerings often contain both good and service components. In this regard, a good may contain embedded service components. These service components could be categorised by their degree of separability depending on the interaction required between the provider and the user of the service. Previous studies have recognised the impact of such separability or simultaneity of production and consumption on the choice of entry mode. However, they have focused on this issue from a service rm perspective. The current paper has considered

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separability from a manufacturing rm perspective and has sought to address how the separability of services embedded in a good affects the rms choice of foreign entry mode. In order to systematically address the issue, the authors have developed a conceptual model highlighting the impact of service embeddedness on a manufacturing rms foreign entry-mode choice. The model aims to portray the relationship between services embedded in a core manufacturing product (manufactured good), and the rms internationalisation strategy with the relationship moderated by the degree of separability of the service elements. Using a qualitative method, and based on interview data from 18 Australian owned manufacturing subsidiaries in the UK, the current research nds that the degree of separability of services embedded in manufactured goods may have signicant impact on entry-mode choice. The research attempted to explore an area previously ignored by the marketing and internationalisation literature. The research ndings contribute to the existing marketing and internationalisation literature, and have implications for future research and the manner in which manufacturing rms choose to deliver their product offerings in foreign markets.

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