Market Uncertainty and Entry Mode Choice in Service Sector: A Multidimensional Factor-Matching Model

Studying the influence of market uncertainty on the strategic decision of entry mode in service sectors is an attractive topic for both industrial insiders and academic researchers. Empirical research results derived from single service sector as well as other qualitative analyses have argued that the influence is significant. However, the underlying mechanism and statistical evidence is not carefully developed to date. After an innovative clarification of both service property and market uncertainty in line with various factors engaged, the paper creates a factor-matching model that can produce hypotheses for entry mode choice in service sectors. Moreover, preliminary statistical test followed shows that the model is workable and the validity of those hypotheses does exist.