Market entry strategy of knowledge intensive service firms

the case of Australian transnational universities

Mark Tayar, Robert Jack

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

Abstract

As examples of knowledge-intensive services, Australian universities have pursued non-equity entry modes to deliver courses transnationally. Through a case study investigation of four Australian universities, this study evaluates the perceptions and entry decisions of university managers. From the market selection, entry mode and higher education literature, a conceptual model, embedded with 4 propositions, is presented. The model sees market selection and entry mode as inter-dependent decisions which are influenced by manager and university motives, risk-aversity, and host government constraints in a gradual process of internationalisation. Among our key findings are that profitability is not a driver for university internationalisation and, due to a culture of risk-aversity, universities prefer zero-equity modes unless risk can be minimised or accommodated through suitable hedging strategies.
Original languageEnglish
Title of host publicationAIB 2011 conference proceedings
Place of PublicationEast Lansing, MI
PublisherAcademy of International Business
Number of pages29
Publication statusPublished - 2011
EventAcademy of International Business Annual Meeting - Nagoya, Japan
Duration: 24 Jun 201128 Jun 2011

Conference

ConferenceAcademy of International Business Annual Meeting
CityNagoya, Japan
Period24/06/1128/06/11

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    Tayar, M., & Jack, R. (2011). Market entry strategy of knowledge intensive service firms: the case of Australian transnational universities. In AIB 2011 conference proceedings East Lansing, MI: Academy of International Business.