Retail internationalization: A review and directions for future research

Abstract

The purpose of this article is to provide a review of scholarly articles that have examined retail internationalization issues. We identify three core areas within RI research: (1) RI drivers and impediments, (2) RI strategy, and (3) RI performance. We also discuss four RI strategy issues that have been examined: (1) RI speed, (2) Foreign market selection, (3) Foreign entry mode, and (4) Strategy employed. Based on the review, we point to multiple areas where RI research is lacking and can contribute to the advancement of the field as well as offer insightful implications for international retail managers.     

The antecedents of early internationalization: A configurational perspective

The literature on international business and international entrepreneurship provides multiple explanations for early internationalization. Using fuzzy-set qualitative comparative analysis, this study examines the antecedents of early internationalization for small firms based in a small economy, focusing on entrepreneurs’ attitudes toward the economic opportunities available in their domestic market, the risk of internationalizing, and the profitability of entering foreign markets. Three additional antecedents are examined: unsolicited orders, existence of underutilized capacity, and the behavior of competitors. The study uncovers three distinct combinations of antecedents that are equifinally linked to the early internationalization of small enterprises, and contributes to the literature through a multi-causal, configurational approach.     

Exporter-importer business relationships: Past empirical research and future directions

We present a systematic and comprehensive review of the extant empirical literature on exporter-importer business relationships during the period 1975–2017. The review covers 196 articles published in academic journals, which were content-analyzed with their theoretical background, research design, scope of research, sampling/data collection methods, data analysis, and thematic areas covered. Our findings reveal that this line of research is characterized by: (a) a sound theoretical foundation, the most frequent theories being the behavioral paradigm, transaction cost economics, and relational exchange theory; (b) heavy emphasis on formalized, statistical, cross-sectional, and causal research designs; (c) focus on single-country studies, conducted mainly in Europe, Asia, and North America; (d) a tendency to employ probabilistic samples, of a relatively large size; (e) an adoption of relatively sophisticated methods to purify and analyze data collected; and (f) an emphasis on topics relating to behavioral and structural relational dimensions, followed by external and internal influences. Guidelines for researchers focusing on exporter-importer relationships are provided, as well as suggestions for potential new research topics.     

An integrative model of the role of knowledge in the internationalization process

Knowledge is considered an essential resource in a company’s internationalization process, both from the sequential point of view and from the perspective of International Entrepreneurship. This paper proposes a model to integrate the influence of knowledge on international behavior based on proposals taken from the literature on organizational learning in multinational companies. The model comprises several phases: prior knowledge; acquisition of new knowledge; integration of both sets of knowledge; action and feedback. Using the proposed model, different courses of action are identified for further research into the process of company internationalization.     

Selecting the country in which to start internationalization: The non-sequential internationalization model

The paper analyses the selection of the country in which a firm starts internationalization. It proposes that some firms strategically choose a non-sequential internationalization, that is, they select a country that is dissimilar to their country of origin for their first foreign expansion. The reason for this is that some firms develop, in their home country, three types of knowledge that are useful to overcome foreign expansion difficulties: knowledge to manage complexity, developed by having multiple operations at home; knowledge to manage differences in competitive conditions, developed by operating in business-to-business industries, and knowledge to manage differences in institutional environments, developed by allying to a foreign firm at home.     

Knowledge and knowledge sharing in retail internationalization: IKEA's entry into Russia

Abstract

Research on retail internationalization and internationalization in general acknowledges the relevance of knowledge management and organizational learning, even though there is a lack of discussion about the specific constructs and approaches that would be most fruitful. The central role of knowledge sharing in the internationalization process is rarely stressed. Furthermore, the specificities of retailing are likely to require special considerations if we are to be able to develop a theoretical as well as a practical understanding of knowledge and knowledge sharing in the internationalization process. The aim of this paper, therefore, is to develop a tentative approach to knowledge and knowledge sharing in international retailing based upon previous literature about knowledge sharing and the internationalization process and a case study of IKEA's entry into the Russian market.     

Cognitive foundations of firm internationalization: A systematic review and agenda for future research

Managerial cognition has a fundamental role in the internationalization of firms. However, there exists no coherent understanding of how prior research has examined and captured the cognitive foundations of internationalization. This paper provides a systematic review of this body of literature. The review identifies three main streams of research that, overall, consists of nine more specific research areas. We show that especially the areas addressing (1) managerial learning, (2) characteristics of upper echelons, (3) intra-organizational perceptions, and (4) external actors’ perceptions provide opportunities for the further advancement of internationalization literature. For harnessing these opportunities, we find that the microfoundational approach could support the empirical examination of the cognitive foundations and would notably contribute to the Uppsala model-based theorization of the firm internationalization process.     

How early opposed to late internationalizers learn: Experience of others and paradigms of interpretation

Although learning plays a pivotal role in the internationalization context of the firm, studies elaborating aspects of learning of early internationalizers (as opposed to late internationalizers) are largely missing. We address this deficit by examining the process of learning in the entry phase of internationalization. Our empirical results show that learning from direct experience is negatively related to early internationalization, whereas learning from others and learning from paradigms of interpretation have a positive impact on early internationalization. Furthermore, our results suggest that early internationalizers compared to late internationalizers continue to prefer cooperative modes of market penetration and show higher entry-mode stability in the same country.     

Social capital in service-oriented firms: future directions

Abstract

This collection aimed to provide a broader picture of the implications of social capital in service-oriented firms. In this piece, we identify trends for future research on social capital with a focus on the services industry, an important sector of the economy. We focus on three future directions: the internationalization of service firms, social capital for service-oriented social enterprises and public policy programmes to create social capital, particularly in the context of Asia Pacific. We then identify how the contributions to this collection are related to these future directions to encourage more confirmatory work in this dynamic field of research and practice on social capital in service-oriented firms in the Asia Pacific region.     

Sustainable development and entrepreneurship: Past contributions and future directions

This article discusses the emerging research concerned with sustainable development and entrepreneurship, which is the focus of this special issue of the Journal of Business Venturing. Entrepreneurship has been recognized as a major conduit for sustainable products and processes, and new ventures are being held up as a panacea for many social and environmental concerns. However, there remains considerable uncertainty regarding the nature of entrepreneurship's role and how it may unfold. We begin with an overview of sustainable development and the role of entrepreneurship and outline recent contributions exploring this role. We then summarize the papers presented in this special issue and conclude with suggestions for further research.     

The determinants and performance of early internationalizing firms: A literature review and research agenda

As scholars have examined the antecedents, processes, and performance of early internationalizing firms in the past three decades, the domain has become a full-fledged research field. However, extant reviews have not yet provided a comprehensive picture of the determinants of early internationalizing firms and their performance although it is a relevant topic in the literature. In response, this paper seeks to systematically review and synthesize extant research on the determinants and performance of early internationalizing firms. The authors critically assess and examine 167 articles that have appeared in 28 academic journals over the last three decades. This study contributes to extant literature by highlighting the determinants of early internationalizing firms and their performance with a focus on the entrepreneur, firm, and environment factors. Furthermore, an integrative framework has been developed to account for the relationships among determinants, early internationalization, and outcomes. Finally, this paper reveals some significant gaps to advance an important research agenda for future research.     

Linking knowledge, entry timing and internationalization strategy

This paper contributes to the current internationalization theory by linking the characteristics of the firm's resource-base, its market-entry timing orientation and international growth orientation so as to shed more light on internationalization strategies. By employing multi-industry data, we find that the nature of the firm's knowledge, its entry timing orientation and international growth orientation are related to its internationalization strategy. Among other results, we find that the firm's accumulated expertise is positively related for both the international growth orientation and entry timing orientation. The international growth orientation, in turn, is related both to the path type of internationalization the firm employs as well as the geographical diversification in market entry. In other words, the results suggest that the firm's resource-base influences on both its entry timing orientation and to the internationalization strategy. These and other findings are discussed with regard to their scholarly and managerial implications.     

Early internationalization and subsequent geographic expansion: An extended Penrosean perspective

Internationalization is, by nature, a dynamic and continuous process that unfolds over time. However, the extant literature on international entrepreneurship primarily focuses on the antecedents that influence the initiation of internationalization and downplays its post-entry process. Specifically, little research has examined how early internationalization relates to subsequent geographic expansion. To bridge this gap, we draw upon Penrose’s theory of firm growth and a judgment-based view of entrepreneurship. We posit that earlier resource commitment to foreign countries enables entrepreneurs to quickly start managerial learning based on their experience of experimentation activities in foreign markets, facilitating entry into new foreign markets. Especially, we hypothesize that the operational experience acquired through earlier foreign direct investment is positively associated with subsequent geographic expansion, and the location where to accumulate operational experience moderates the association. The results of our longitudinal 19-year (2000–2018) study on 75 Japanese early internationalizing firms provide evidence for our hypotheses.     

The Vietnam project: developing conceptual knowledge on cross-cultural skills for training in SME internationalization

This paper explores the importance of cross-cultural skills needed by Vietnamese SMEs (current and potential) exporters across Hanoi, Da Nang and Ho Chi Minh City (HCMC). The findings suggest that training needs vary by regions, stage of SME development and cultural context of the region. The study has both theoretical and practical implications. The paper suggests that prior to designing and implementing training, the identification process must involve systematic conceptualization of key export stimuli and be informed by best practice and empirical knowledge. The study endeavours to develop a conceptual framework and propositions for future research.     

Early internationalization and the role of immigration in new venture survival

Immigrant-started new ventures face the liability of ethnicity because of their founders’ disadvantaged immigration status. It is extremely difficult for them to acquire human, social and financial capital and access market in founders’ country of residence to survive. This study empirically examines the survival of immigrant-started new ventures. We find that an early internationalization strategy could enhance those ventures’ survival and that immigration status moderates the effect of an early internationalization strategy on their survival. This study contributes to both immigrant and international entrepreneurship literature. Managerial and policy implications are also discussed.     

Corporate entrepreneurship: Current research and future directions

In this paper, we suggest future research on the processes and knowledge-based resources in corporate entrepreneurship (CE), argue for the need to appreciate the heterogeneity of CE in relation to new contexts, and suggest appropriate strategies for such contexts. First, we highlight the key contributions of the papers in this special issue, with a particular focus on how they provide insights into structural and process contingencies, the role of management at multiple levels, and organizational and managerial capabilities. We then discuss the limits to the applicability of theories developed in other contexts to CE. Finally, we suggest some future research, with particular emphasis on the corporate governance mechanisms that foster CE and the requisite managerial roles and skills in instigating and supporting entrepreneurial activities at different levels of the organization.     

SME internationalization research: Mapping the state of the art

This paper offers a review of published conceptual and empirical studies indexed in the main academic search databases, covering literature on the internationalization of small and medium‐sized firms. We analyzed a total of 554 papers covering the period between 1977 and 2014, and found the following general trends: empirical research focuses mainly on Europe and is characterized by a diversity that identifies 74 different topics. This study provides academics and practitioners with a clear perspective on future directions of SME internationalization and contributes to our understanding of the relevant research to date. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Post-entry internationalization speed of SMEs: The role of relational mechanisms and foreign market knowledge

Prior research shows that small and medium-sized enterprises (SMEs) can utilize domestic networks with internationally experienced partners to accelerate their internationalization process. Yet, there is a lack of clarity and limited empirical evidence regarding the role of relational mechanisms within these networks in driving post-entry internationalization speed (PIS) of SMEs. To address this gap, this study examines the relational mechanisms-PIS relationship by drawing insights from the relational view to argue that foreign market knowledge mediates the relationship between relational mechanisms and PIS. The hypothesized study model is tested using a structural equation modelling (SEM) technique on a sample of 394 UK based manufacturing SMEs. Our results show that foreign market knowledge acquisition from domestic networks fully mediates the relationship between relational mechanisms and PIS. Additionally, the linkage between foreign market knowledge acquisition and PIS is moderated by domestic environmental hostility, such that the relationship is strengthened when domestic environmental hostility increases. We discuss the contributions and implications of our results and suggest opportunities for future research.     

Talent management: Current theories and future research directions

Research on Talent Management (TM) has been lagging behind businesses in offering vision and leadership in this field. After sketching a comprehensive outline of knowledge about TM, theoretical as well as practical, we introduce the papers in this special issue and their important contributions. This introductory article contributes to filling the knowledge gap by offering a research agenda at multiple levels and in multiple contexts. We also discuss methodological issues in the study of TM, and conclude by identifying several key trends that are now, and will continue to influence the practice and study of TM in the future.