Summary

Since the 1990s, one observes a clear internationalization and consolidation trend in the European temporary work services. The diminishing role of the national legislation, the liberalization in some European countries for temporary work contracts and the growing trend of cross-border contracts of European multinationals with TWBs, were causing the current evolution in the industry. A group of European (and even global) temp agencies was formed, competing on a more international level. It was, however, confronted in the different countries with local temp agencies.

Teaching objectives

This industry note opens opportunities for discussion on three main issues: Drivers for internationalisation: What is driving companies in an industry towards more internationalization? Economies of scale, pan-European legislation and liberalization, client demand for cross-border contracts or the competitive interaction between different players? How can local companies survive? Europeanization versus localization: Is a service industry by definition local? What are the benefits of a pan-European strategy in this sort of organizations? Internationalization of services: How do manufacturing and services industries differ in terms of internationalization pressures?

Keywords
  • RD0300