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Strategic resource decisions to enhance the performance of global engineering services

journal contribution
posted on 17.06.2019, 09:34 by Yufeng Zhang, Zhibo Yang, Tao Zhang
This paper extends our understanding of the internationalisation and firm performance (I-FP) relationship of service firms by considering the influence of strategic decisions on three types of slack resources. The research focusses on an important type of service operations − global engineering services, which are a major part of the global economy and represent a distinctive business model in the contemporary business environment. In doing so, we theorise the I-FP relationship by addressing the knowledge-intensive, project-based and people-centric features of engineering service firms (ESFs); and test the relationship with a carefully assembled dataset containing 12 years’ data from 242 ESFs. We identify a negative overall I-FP relationship, i.e. ESFs’ international expansion leads to worse financial performance in general. The presence of slack resources explains why such a result exists. Our findings have significant implications, both for future research on internationalisation and performance and for firms to effectively deploy their resources to support global service operations in a strategic manner.

Funding

Seventh Framework Programme of the European Union through Marie Curie Actions IRSES Europe-China High Value Engineering Network (EC-HVEN) under Grant Number PIRSES-GA-2011-295130; and the National Social Science Fund of China for Young Scholars under Grant Number 13CGL010.

History

School

  • Loughborough University London

Published in

International Business Review

Volume

27

Issue

3

Pages

678 - 700

Citation

ZHANG, Y., YANG, Z. and ZHANG, T., 2017. Strategic resource decisions to enhance the performance of global engineering services. International Business Review, 27 (3), pp.678-700.

Publisher

© Elsevier

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Acceptance date

27/11/2017

Publication date

2017-12-06

Copyright date

2018

Notes

This paper is closed access.

ISSN

0969-5931

Language

en

Exports