ABSTRACT
For many service sector firms international trade is limited, or simply not an option. International expansion for these firms requires the extension of their organisations beyond national boundaries through FDI or other related means. To fully appreciate the internationalisation of services it is then necessary to explore the organisational development of international service firms. It is the purpose of this chapter to achieve this through an examination of the organisational theory of the firm. A review of the wealth of organisational literature is beyond the scope of this study, attention here will be focused on economic approaches to organisations The chapter will begin with a brief review of organisational theory of the firm and an assessment of its relevance to service firms. This is followed by an exploration of the organisation of international service firms. Conclusions will be drawn with regard to the value of organisational theory as an explanation of the organisational development of international service firms.
