Towards a framework for the study of franchising as an operating mode for international retail companies

In recent years franchising has become a popular operating strategy for companies competing in the global marketplace. In particular, international retailing companies have increasingly been adopting franchising as a marketentry mechanism. While this growth in the popularity of franchising has led to increased research interest in the topic, there has only recently been a recognition of the need to consider franchising within the wider context of retailer internationalization activity. This paper attempts to provide a framework for the study of franchising as a strategy for retailers expanding into international markets. The discussion examines key findings to date from the established literature on international franchising concerning the motivations underlying internationalization, the internationalization process itself and the operating problems encountered. It is argued that a careful examination of findings from the international franchising literature can provide further development of retail internationalization conceptualization.     

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.     

In-Store Shopping Behavior

SUMMARY

The analysis of consumer shopping behavior is one of the most critical aspects which has to be taken into consideration in a context of retailing internationalization, where managers need to define the degree to which international firms can standardize or adapt their strategies in foreign markets. The aim of this research is to analyze and point out the main cross-cultural differences regarding in-store behavior comparing three countries: Italy, France and Poland. The study presents the results of an empirical research carried out on the household goods retail sector, which shows on a global level a positive growth trend that is predicted to continue in the next years especially through the internationalization of the retailing chains.     

Expansion within the Single European Market:a motivational structure

This paper considers the motivational context in which internationalization occurs. The paper considers the recent research of Pellegrini (1994) and Williams (1992a, 1992b) and addresses the fundamental question concerning the nature of internationalization raised by Brown and Burt (1992). The paper reports on, and uses findings from, a survey carried out in July 1993 which focused on retail expansion within the Single European market (SEM). The relative importance of motivations is considered in the context of retailers' attitudes to the SEM. These results are placed in the context of previous research findings and the theoretical literature on international retailing. On the basis of UK retailers' attitudes to expansion in the SEM and in the light of previous research work, this paper discusses the positions adopted by retailers in relation to internationalization. A matrix representing these positions is proposed and discussed.     

Microfoundations for learning within international joint ventures

IJV research highlights the importance of learning in international joint ventures (IJVs) but has not indicated how to achieve it. We combine organizational learning and internationalization process research within a microfoundations framework to understand learning in IJVs. We study a Samsung–Tesco IJV that successfully learned retail practice from one partner and applied it in a South Korean context known by the other. The managers used many learning processes, not just experiential learning emphasized in international business research, and used many more knowledge sources than assumed in prior research, including the IJV partners’ other subsidiaries. To build absorptive capacity, IJVs need appropriate microfoundations at individual, process and structural levels, and coherent interlinkages between them, especially by having IJV managers’ with extensive experience and orientation to learn who are given structural and process autonomy to invest in learning.     

The Internationalization of Small and Medium-Sized Firms

This paper contributes to the existing research by integrating the notions of organizational learning and entrepreneurial orientation into the body of international entrepreneurship. Our primary framework combines learning theory and the new venture theory of internationalization to study the extent to which small and medium-sized companies engage in international activities. We found that the firms’ international learning effort and entrepreneurial orientation are positively associated with internationalization intent whereas domestic learning effort is negatively related with internationalization intent. Overall, our results suggest (1) that intensive knowledge renewal and exploitation regarding foreign markets and the internationalization process itself may increase internationalization by affecting the perceptions of opportunities offered by further international expansion, and (2) that firms with an entrepreneurial mindset may be more likely to develop a long-term, substantial presence in the international arena, compared to firms that are more reactive or conservative.     

New directions for international retail joint venture research

Abstract

This paper contends that a range of questions arising from the geographical and organizational dynamics of international retail joint ventures have been bypassed by studies in the international retail field. It argues that, despite its importance as a corporate growth strategy, comparatively less is known about the way in which retailers have employed joint ventures in international markets. Based on a review of the literature and illustrated with examples of international retail joint venturing activity, this paper reveals several gaps in our understanding of the internationalization process of retail firms. Suggestions for further research are made throughout the paper on the basis of gaps in the retailer internationalization literature.     

Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories

Whenever a retail company expands its store network in a foreign market, decisions have to be made about how this can be achieved. Existing studies of retail internationalization have usually analyzed the “entry mode” choice as an end in itself, and not as the start of a firm׳s international development. In addition, there is much debate in the academic literature about the antecedents for retail foreign operation mode choice and the relevance of generic internationalization theories to international retailing. Therefore, the objectives of this research are (1) to investigate the paths of entry and subsequent expansion modes pursued by retailers in international markets and (2) to develop and test a model of expansion mode antecedents in the light of generic business internationalization theories. This is achieved on the basis of data collected from 43 French fashion retailers and a PLS-SEM approach. Results show that (1) retailers clearly differentiate between entry and expansion modes; (2) the international marketing plan, the perceived attractiveness of the foreign market, and strategic and ownership conditions are the key antecedents for the choice of an expansion mode. After comparing the results with the explanations proposed by the generic internationalization theories, a multi-theoretical framework is proposed which draws from the Uppsala internationalization process model, network theory and the born-global theory. The findings provide a wealth of information for retailers׳ use in choosing appropriate foreign operation modes.     

Towards a conceptual model of country market selection: Selection processes of retailers and C&C wholesalers

Abstract

International market selection is discussed in general, particularly in respect of decisions on evaluation stages, selection criteria and evaluation methods. The present analysis focuses on the configuration of country selection models, which has received little attention in international retailing research. In order to illustrate the special features of market selection in retailing, we have used an innovative approach. Following a review of general theoretical perspectives, a case study of the Metro Group addresses the process used, inter-country selection and country-specific selection, and also shows the role of corporate principles and firms' situational factors. Based on existing literature and the case study information, we propose a strategic approach in modelling country selection processes. Three steps in the construction of a selection model are discussed and related to corporate principles and situational factors of a retail firm. The analysis is a further step towards understanding the processes of retailing internationalization.     

零售专业技能的跨国转移与零售本土化问题研究

零售专业技能的跨国转移与零售本土化问题是零售国际化理论研究的一个重要环节,对跨国零售商海外经营的成败有着重要的作用。本文对零售专业技能的内涵与构成进行了全新的界定,认为零售专业技能由零售技术、零售文化以及零售业态三部分构成,每一部分又可以分解成固化性与操作性两个层面,在此基础之上构建起零售专业技能跨国转移的理论框架,认为零售专业技能的固化性层面在跨国转移过程中应该进行标准化的复制,而操作性层面则可以进行不同程度的本土化调整,进而论文围绕零售专业技能操作性层面在跨国转移过程中的调整行为深入分析了跨国零售本土化边界与策略问题。     

The role and management of product innovation in retailer assortments: evidence from the Italian FMCG market

This paper relocates the recent wave of internationalization in retailing in a much longer historical context. Utilizing a newly compiled database of all foreign entrants into British retailing since 1850, the paper reviews trends in overall entry patterns before considering the entry patterns in different retail trades. New empirical data on the branch counts of foreign entrants from 1850-1991 are presented. These data clearly indicate that what was new about the 1980s was not their number per se but the concentration of large numbers of relatively small entrants in clothes retailing. This analysis of the very long term developments of international retailing in Britain therefore concludes that any account of the upsurge in foreign entrants into British retailing in the 1980s needs to take the concurrent developments of high street demand for clothing more fully into account.     

零售业国际化失败及其原因分析

零售业国际化浪潮如火如荼,但是有关国际化失败的研究却很少.国际化失败的定义不同,但是零售商都没有意识到,国外的回报根本无法与国内相提并论.虽然大的跨国零售商的国际化失败鲜为人知,但是国际化失败可能发生在任何业态.国际化失败主要是由预测失败、竞争失败、适应失败和成长失败等原因造成的.     

Factors Influencing International Retailers' Market Entry Mode Strategy: Qualitative Evidence from the UK Fashion Sector

Research on the internationalisation of retail firms has focused on many diverse themes such as the motivations for internationalisation, individual company experiences and the direction and extent of international retail activity. One particular aspect of the retailer internationalisation process that has remained relatively under researched is entry mode choice. Furthermore, while research on fashion retailing is increasing, the internationalisation of the sector has been largely neglected in the literature. The aim of the current work is to provide an initial attempt at redressing this research gap. The paper reports findings from an in-depth study into the entry mode choice decision process of seven major UK international fashion retailers. It is found that entry mode strategy emerges over time as a result of a combination of historical, experiential, financial, opportunistic, strategic and company-specific factors.     

Upstream internationalization process: Roles of social capital in creating exploratory capability and market performance

This paper investigates to what extent resource governance of international ventures affects dynamic capability and market performance in the high-tech firms’ internationalization process. We examine the non-equity-based international network collaborations of high-tech firms as forms of strategic resource seeking within the internationalization process. Within the context of upstream technology collaborations by international software and hardware firms, this paper proposes and empirically examines the impact of resource governance mechanisms (i.e. trust-building and behavioral monitoring) on the exploratory capabilities of firms. The findings indicate that building trust in the internationalization process of network ventures contributes to the firm-level exploratory capabilities and, in turn, market performance. Furthermore, this paper tests the moderating effects of structural capital on the capability–performance relationship. The relationship is stronger when network relationships existed before the inception of the international technology alliance. We also find a negative moderating effect from the existence of an actual alliance and from network duration on the relationship between exploratory capability and market performance. To this end, the longevity of the alliance may not always be something firms should aim for. The paper highlights the criticality of relational and structural capital in the internationalization process and the importance of exploratory capability for creating radical innovation in high-tech industries.     

The Growth and International Expansion of an Emerging Market Retailer in Latin America

ABSTRACT

This study contributes to the literature on international retailing by addressing a gap in the literature regarding how retailers from emerging markets expand internationally. This historical case study analyzes the growth and internationalization process of Chilean retailer Falabella, which is one of the largest retailers in Latin America and has been able to compete with multinationals from developed countries. The research is based on primary and secondary data sources including 33 oral interviews with company managers and family executives, as well as industry data, corporate reports, and trade journals. Drawing on institutional theory, the findings show that belonging to a family conglomerate, engaging in networks, partnerships, and organizational learning, and having an experienced management team helped Falabella gain legitimacy in all international markets.     

Retail formations: tracing the fluid forms of an online retailer

ABSTRACT

Change has often been said to characterise retailing, and research on retail change is extensive. However, though much of that research has focused on retail formats, it has not sufficiently addressed the fluid nature of retailing and how its formats emerge. This paper offers a more dynamic conceptualisation of retail format change by introducing the concept of retail formation. Taking a constructivist market studies approach and drawing upon an ethnographic study of a Swedish consumer electronics retailer, the paper shows how retail formations are continually being made in a dynamic process that can be initiated by various actors, does not necessarily follow a logical order, and commonly produces unexpected results. The concept of retail formation allows us to better understand the increasing fluidity of retailing enabling us to trace complex market processes, examine multiple actors simultaneously, and taking into account the socio-historical and socio-cultural dynamics involved in shaping retail markets.     

我国零售业国际化战略研究

目前,相比外资零售业,我国零售业在国际竞争中处于劣势.文章分析了我国零售业国际化的必要性与可行性,认为本土零售业要想在国际市场上取胜,必须走国际化经营之路,并且有针对性地提出了跨国经营的战略.     

Managing the embedded multinational: a business network view

This response welcomes A. Godley and H. Hang's comment on N. Alexander's recent article. It acknowledges those theoretical issues on which there is broad agreement and explores theoretical issues around which debate is likely to focus in the future. Consideration is given to international retailing in the first and second global economies and the problems surrounding the evaluation of longer term trends. It explores the nature of innovation and the international transfer of retail innovation in an international retail firm and market context. Market structural conditions and their impact on international retail activity are considered. Further areas for historically based research are suggested.