Global Service Multinationals from a Small Open Economy – The Case of Israeli High-Tech Service Providers

Abstract

The chapter investigates the determinants of the extent of foreign services multinationals originating SMOPECs. An inverted U-shaped relationship between the level of technological knowledge and extent of foreign services provision is found, stemming from the facilitating and inhibiting effects of technological knowledge on foreign services provision. Standardization of services and their automation positively moderates this relationship. Overall, the chapter highlights the increased importance of relatively small global service providers from SMOPECs as a new type of multinational that is likely increase in its dominancy in the near future.