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

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  • Picot-Coupey, Karine
  • Burt, Steve L.
  • Cliquet, Gérard

Abstract

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.

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  • Picot-Coupey, Karine & Burt, Steve L. & Cliquet, Gérard, 2014. "Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 976-991.
    • Handle: RePEc:eee:joreco:v:21:y:2014:i:6:p:976-991
    DOI: 10.1016/j.jretconser.2014.08.018
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    2. Jell-Ojobor, Maria & Hajdini, Ilir & Windsperger, Josef, 2022. "Governance of international franchise networks: Combining value creation and value appropriation perspectives," Journal of Business Research, Elsevier, vol. 139(C), pages 267-279.
    3. Ghantous, Nabil & Das, Shobha S. & Chameroy, Fabienne, 2018. "Governance capabilities and relationship performance in international franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 19-30.
    4. Mohr, Alex & Batsakis, Georgios, 2018. "Firm resources, cultural distance and simultaneous international expansion in the retail sector," International Business Review, Elsevier, vol. 27(1), pages 113-124.
    5. Feldmann Florence, 2016. "Factors of Success and Failure for International Retailers in Poland," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 24(3), pages 2-22, September.
    6. Sasa Veljkovic & Zoran Bogetic & Dragan Stojkovic, 2015. "Using Marketing Approach to Respond to Internationalization Challenges and Changes in Marketing Channels," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(2), pages 79-100.

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