If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractRetailers in small countries such as The Netherlands learn that growth means internationalization. US retailers do business in the largest and most affluent mass markets in the world. However, they have reached a saturation point for some popular retail formats. US retailers are looking outside national borders for expansion opportunities. The Strategic International Retail Expansion (SIRE) model combines ideas presented in four separate theories to predict future expansion of these retailers.

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Retailer's internationalization is unique because their movement into another country requires that they establish a physical presence. Most research in international retailing has lumped all retailers together. In this article four types of retailers are discussed along with different expectations about when, where, and how they will internationalize.

PurposeSeeks to summarize relevant literature reporting on western research and to use a grounded theory approach to form the model. Also to develop a Chinese retailer new product decision process model. And consider unique aspects of Chinese culture and the ongoing economic transitions.Design/methodology/approachForeign producers have little knowledge about the internal operations of China's chain stores. As China's markets open to the world, an understanding of the ways in which retailers and suppliers interact in China – especially the ways in which they make product selection decisions – will be crucial to companies expanding into this area of the world.FindingsResults are presented from in‐depth interviews with retail food buyers in China. Interviews were conducted during 1999‐2000 in Shanghai and Beijing. The interview data are used to develop a model of buyer‐seller relationships that lends itself to a better understanding of the complexities – cultural and market‐related – of retailer‐supplier relationships in China.Research limitations/implicationsSince, China is a vast country this study forms a small part of the process in understanding its buyer‐seller interactions.Practical implicationsThe literature, including grounded theory and the research undertaken with the sample of respondents highlight the potential gains from understanding the nature of Guanxi and the culture of China. Managerial implications are discussed.Originality/valueThe study investigated buyer‐seller relationships within the Chinese market. When Chinese food retailers make decisions on new product acceptance, their criteria are similar to those of food retailers reported in research focused on western society. Supplier role performance, price, trade assistance, and relationship with supplier are primary considerations; these criteria support results from western literature.