Developing a competitive international service strategy: a case of international joint venture in the global service industry

Abstract

Purpose

The purpose of this paper is to examine how an international joint venture (IJV) company can efficiently develop a competitive international service strategy in the competitive global marketplace. Specifically, this study seeks to highlight the key antecedents related to the development of an international service strategy and its implementation through the case of the IJV of Starbucks Korea.

Design/methodology/approach

The case study method is used. A series of in-depth personal interviews with the CEO of Starbucks Korea, a marketing manager at Starbucks Korea, and outlet managers of Starbucks Korea were conducted. Furthermore, an array of secondary data and company documentation was reviewed to triangulate the findings of the study.

Findings

Several themes illuminating the development and implementation of a successful international service strategy in the case of an international joint venture are identified. It was found that one of the critical antecedents related to the successful international service strategy in the context of an IJV is the similarity of organizational values between the IJV partners. The similarity between the corporate values and missions of the two partners in Starbucks Korea has become a major impetus in the development of a competitive international service strategy for Starbucks Korea.

Research limitations/implications

The findings of the study may not be applicable to other service firms since the study uses a single firm and a single country as its context.

Originality/value

The results of the study should help international service firms understand the importance of a successful international service strategy in the case of an international joint venture. Furthermore, the findings of the study illustrate the importance of understanding the local culture to develop a successful international service strategy.

Citation

Lee, K., Madanoglu, M. and Ko, J.-Y. (2013), "Developing a competitive international service strategy: a case of international joint venture in the global service industry", Journal of Services Marketing, Vol. 27 No. 3, pp. 245-255. https://doi.org/10.1108/08876041311330735