challenges of service export - insights from bavaria¤nge... · automotive ceramic chemical metal...

Research results

Challenges of service export - insights from Bavaria

14.07.2016 2

Increasing economic importance of services and globalization

Service economy with 70% of gross value as key antecedent of economic growth

Large growth rates of services export, esp. compared to goods export

We are living in a globalized service economy

Service Export

(in billion US Dollar)

Goods Export (in

billion US Dollar )

Diff.

Service

Exports

Diff.

Goods

Exports

2013 2014 2013 2014

USA 687,4 709,5 1577,6 1619,7 3,2% 2,7%

China 208,1 233,5 2209,0 2342,3 12,2% 6,0%

France 254,9 268,4 581,0 580,5 5,3% -0,1%

UK 316,4 341,5 548,0 511,2 7,9% -6,7%

Germany 260,8 271,5 1451,0 1498,2 4,1% 3,3%

Mirjam Dobmeier

14.07.2016 Mirjam Dobmeier 3

Manufacturers increasingly seek service-led growth

Most manufacturers already offer value-added services, e.g. engineering and consulting services, installation

and maintenance, documentation and project management, etc.

Value-added services within manufacturing are important antecedents of export activities

97% 95% 94% 88% 87% 85% 85%

79% 71%

54%

0%

20%

40%

60%

80%

100%

Machinery andPlant

Engineering

Electronicsand IT

Automotive Ceramic Chemical MetalProcessing

Average Woodworkingand Furniture

Paper andPrinting

Nutritionaland Beverages

Provider Rate of Industrial Services in Germany (2012)

14.07.2016 4

Bavaria is an important service location within Germany

59163,5

28704,2

18807,7

9911,3

6148,7

2849,5

2463,3

1146,0

1097,8

765,0

285,6

170,2

65,7

146,4

124,2

95,2

Sales (in EUR billion) per 1.000 service firms

Mirjam Dobmeier


Despite several initiatives service export still faces

challenges

Intangibility hard to grasp

Inseparability process character and co-production

Heterogeneity tailored to individual needs

Inherent characteristics

of services

Increase freedom for service import and export

Positive development, esp. in financial, transport, postal, and

telecommunication services

European Union:

1992 single market programm

Identification of current challenges of service export and

deriving implications for managerial practice and economic development

in order to realize opportunities of service export.


Expert discussions were the basis for the survey

structure

Additional questionnaire of the „Going International“ foreign trade survey of the German CCIs 2016

Multiple-choice questionnaire, with multiple nominations

Preparation of service exports

Employee postings Bureaucratic challenges

abroad


449 mainly small and medium sized firms participated in

this study

Machinery and Plant Engineering; 13,90%

Metal Processing; 6,60%

Chemical and Plastics; 9,50%

Electronics and IT; 10,50%

Optics and Medical ; 7%

Automotive; 3,40%

Other Manufacturing; 11,50%

Agricultural and Nutritional; 5%

Construction; 10,30%

Wholesale; 1,20%

Retail; 1,70%

Commercial Broker; 13%

Professional Services; 2,90%

Person-related Services; 3,40%

Sample by Industry

77,8% are manufacturing firms, esp. machinery and plant engineering (13,9%)

Within the service industry, esp. commercial broking firms participated (13%)

62,6%

35,5%

1,9%

64,7%

22,6%

9,4%

64,5%

31,0%

4,5%

0%

10%

20%

30%

40%

50%

60%

70%

Export No Export Export planned

Service Export by Industry

Manufacturing Services Total

Service firms export services more often compared to manufacturing

Export activities planned within the service sector indicate higher dynamics concerning cross-border service activities


Companies within the service industry export more

services than manufacturing

10,0%

10,3%

12,8%

13,9%

12,0%

15,3%

17,0%

19,3%

19,5%

11,4%

11,4%

13,8%

15,7%

8,8%

15,6%

18,1%

22,9%

20,4%

9,2%

9,7%

12,3%

12,9%

13,7%

15,1%

16,4%

17,2%

19,0%

0% 5% 10% 15% 20% 25%

Insufficient information about export country

Lack of specialists in export country

Competition in export country

Missing capacities for export business

No predictability of funding risks

No trusted local network

Lack of legal certainty

Services cannot be exported

Missing sales structures in export country

Challenges during preparation of service exports


Making services ready for export is crucial for the service industry

Missing sales structures are a major challenge

Manufacturing firms suffer from funding risks during preparation of service export


Missing sales structures and missing knowledge about how

to export services are major challenges during preparation

8,6%

9,5%

12,8%

13,4%

12,0%

15,9%

16,5%

24,5%

22,4%

10,3%

9,8%

15,2%

14,9%

9,3%

15,3%

16,1%

20,8%

14,8%

7,6%

9,4%

11,5%

12,5%

13,6%

16,3%

16,7%

26,6%

26,7%

0% 5% 10% 15% 20% 25% 30%

Recognition of qualifications, certificates, and documents

Complexity of regulations concerning work safety

Complexity of regulations concerning wages

Impact on employees‘ taxes and social security

Employee motivation for stay abroad

Intercultural competences of employees

Complexity of notification procedures

Fulfilling legal and bureaucratic requirements

Language skills of employees

Challenges during employee postings


Challenges during employee postings are named the most among both service and manufacturing firms

Employees‘ language skills as well as fulfilling legal and bureaucratic requirements are major challenges


Employees are an important lever of success during

service export

1,0%

8,4%

7,8%

11,0%

13,2%

15,0%

17,2%

18,4%

16,9%

8,6%

11,3%

9,2%

15,4%

12,4%

17,0%

15,8%

18,0%

13,1%

5,6%

6,8%

7,0%

8,5%

13,6%

13,8%

18,1%

18,7%

18,9%

0% 5% 10% 15% 20%

No possibility to do notification procedures online

Availability of technical infrastructure required

Accessibility of business partners in export country

Esatblishment requirements in export country

No protection of intellecutal property in export country

Personal support on site

Time delays due to bureaucracy in export country

Complexity of tax laws in export country

Disadvantages in tendering procedures

Bureaurcracy as challenges abroad Manufacturing Services Total

Service as well as manufacturing firms suffer from complex tax laws in export country

Manufacturing firms perceive disadvantages in tendering procedures as major challenge

Service firms name establishment requirements in export country as challenge


Disadvantages in tendering procedures and complex tax

laws are challenging during service export


We identified several implications for service and

manufacturing firms

Company-specific potential analysis

of services

Formulation of an export strategy as

a component of the corporate

strategy

Identification and provision of

required resources and capacities

Development and monitoring of

service processes in the destination

country

Concentrating on structured

processes and strategy development

Preparing your employees

and administrative processes

Taking benefit from cross-industry

synergy effects

Preparation and motivation of

employees for international

assignments

Establishment of exchange

programs

Taking advantage of existing

business support

Development and establishment of

networks

Establishment of globalization

networks in the domestic market

Joint services along the value chain


Tasks for foreign promotion

Cross-industry consulting and

further training and best practices

Focus on obstacles of employee

postings and preparation of service

exports (e.g. by an internet portal)

Development of tax and legal

advisory

Establishment of cross-industry

platforms and learning networks to

exchange experiences and for

networking (e.g. business

delegations)

Developing service-specific further

training and consulting initiatives

Adapting existing support

measures to services Expanding on-site support

Surveys on service-specific

challenges

Optimization of legal environment

Expansion of available range of

information

Expansion of digitalization

Reduction of language barriers

Support the establishment of

networks and business contacts

through events

Country-specific on-site consulting

On-site professional development

and training

Temporary provision of a technical

infrastructure on site

Research results

Challenges of service export - insights from Bavaria


Bayerischer Industrie und Handelskammertag e.V. und Bayerisches Staatsministerium für Wirtschaft, Infrastruktur, Verkehr und Technologie (2009): Export Ratgeber für Dienstleister in

Bayern. München.

Bayerischer Industrie und Handelskammertag e.V. (2014): Zum Nutzen des EU-Binnenmarktes für die bayerische Wirtschaft. München.

Bundesministerium für Wirtschaft und Energie (2016): Dienstleistungen. Online verfügbar unter http://www.bmwi.de/DE/Themen/Mittelstand/Mittelstandspolitik/ dienstleistungen,did=239884.html

(Abruf: 30.05.2016).

Deutscher Industrie- und Handelskammertag (2015): Hindernisse im EU-Dienstleistungsbinnenmarkt 2015. Brüssel.

Eggert, Andreas, Jens Hogreve, Wolfgang Ulaga und Eva Muenkhoff (2014): Revenue and Profit Implications of Industrial Service Strategies. Journal of Service Research, Vol. 17 (1), S. 23-39.

Germany Trade & Invest (2016): Export von Dienstleistungen. Online verfügbar unter http://www.ixpos.de/IXPOS/Navigation/DE/Ihr-geschaeft-im-ausland/Markteintritt/export-von-

dienstleistungen,t=erfolgsfaktoren,did=283880.html (Abruf: 30.05.2016).

Handelskammer Hamburg (2008): Dienstleistungsexport: Unternehmen Service. Online verfügbar unter http://www.hamburger-wirtschaft.de/html/hw2008/artikel/21_extra-

journal/08_11_38_dienstleistungsexport. html (Abruf: 30.05.2016)

Hogreve, Jens (2013): Mit industriellen Dienstleistungen zum Erfolg - Ein Überblick. In Roth, S. (Hrsg.): Aktuelle Beiträge zur Dienstleistungsforschung. Wiesbaden, S. 85-100.

Industrie- und Handelskammer Frankfurt am Main (2009): SWOT-Analyse. Online verfügbar unter http://www.frankfurt-main.ihk.de/existenzgruendung/prozessstruktur/gruendungsanalyse/swot/

(Abruf: 30.05.2016).

Industrie- und Handelskammer München für München und Oberbayern (2009): Dienstleistungsstandort Bayern. München.

Institut der deutschen Wirtschaft Köln Consult GmbH (2013): Stand und Perspektiven von Dienstleistungen in Deutschland – Potentiale der deutschen Dienstleistungswirtschaft. Köln.

Lerch, Christian, Matthias Gotsch, Angela Jäger und Nadezda Weidner (2013): Dienstleistungen strategisch anbieten. Mitteilungen aus der ISI-Erhebung, Vol. 65.

Statistische Ämter des Bundes und der Länder (2016): Dienstleistungen – Strukturdaten des Dienstleistungsbereichs. Online verfügbar unter http://www.statistikportal.de/Statistik-

Portal/de_jb17_jahrtab00.asp (Abruf: 30.05.2016).

Statistisches Bundesamt (2016): Volkswirtschaftliche Gesamtrechnungen. Inlandsproduktsberechnung. Lange Reihen ab 1970. Wiesbaden.

Trade Map (2016): Trade Statistics for International Business Development. Online verfügbar unter http://www.trademap.org/Service_SelService_TS.aspx (Abruf: 30.05.2016).

Ulaga, Wolfgang und Werner J. Reinartz (2011): Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully. Journal of Marketing, Vol. 75 (6), S. 5-23.

Witell, Lars und Martin Löfgren (2013): From Service for Free to Service for Fee : Business Model Innovation in Manufacturing Firms. Journal of Service Management, Vol. 24 (5), S. 520-599.

Weltbank (2016): Services Value Added. Online verfügbar unter http://data.worldbank.org/indicator/NV.SRV.TETC.ZS/countries?display=map (Abruf: 30.05.2016).

Zentrum für Europäische Wirtschaftsforschung GmbH (2007): Internationalisierungsstrategien von Dienstleistern der Informationsgesellschaft: Ergebnisse einer Unternehmensbefragung.

Mannheim.

References

challenges of service export - insights from bavaria¤nge... · automotive ceramic chemical metal...

Documents