Country and firm level factors in international retail expansion

Abstract

PurposeThe purpose of this study is to investigate firm‐ and country‐level drivers of retail performance.Design/methodology/approachA database of the top 200 global retailers was primarily constructed from the 2005 Global Powers of Retailing data. Regression was used to test the hypotheses.FindingsThe predictors are able to explain firm level variations in sales growth, but not ROI. While retailers' sales growth is positively related to expansion speed, it is negatively related to number of retail formats and number of countries of operation. Moreover, retailers who choose to expand into a host country that is less developed, with relatively high disposable income, tend to be more successful than others.Research limitations/implicationsThis study is focused on the foreign expansion process and characteristics of the top performing retailers and their first foreign expansion destination.Practical implicationsFindings reflect differences in internationalization strategies of top retailers. Findings also provide guidance for companies who already have foreign subsidiaries, and for those who are interested in opening new markets.Originality/valueThis paper examines the impact of the economic characteristics of the first host country entered and firm level resources and capabilities on two measures of firm performance. Empirical tests of the impact of retail portfolio management capabilities and international market portfolio management capabilities on retail sales growth are offered.

How a Firm's Domestic Footprint and Domestic Environmental Uncertainties Jointly Shape Added Cultural Distances: The Roles of Resource Dependence and Headquarters Attention

“…Several caveats apply to our work. First, as in several prior studies (e.g., Chan et al, ; Dawson, ), Deloitte's Global Powers of Retailing reports were an important source of data for our study, even though we could not verify the reliability of these data for all of our observations. However, since we identified only some minor inconsistencies in the cases where we could verify the Deloitte data in firms' annual reports, we believe these data to be sufficiently reliable.…”

Faktor – Faktor Yang Menentukan Peningkatan Bisnis Ritel Di Indonesia

“…Produk makanan dan minuman yang menjadi pendorong utama belanja ritel di seluruh dunia juga telah terlihat secara nyata pertumbuhannya, yaitu dengan masuknya berbagai toko ritel asing ke suatu negara secara global, dan juga masuknya rantai industri makanan cepat saji ke negara-negara berkembang." Menurut Diamond (2014:138-139), jurnal Ashis Mishra, Javeed Ansari (2013), dan beberapa jurnal pada penelitian terdahulu, antara lain Eunah Yoh, LuAnn R. Gaskill, (1998), Lisa Maharajh, Jeanne Heitmeyer (2006), Polly Chan, Carol Finnegan, Brenda Sternquist (2011), Wantao Yu, Ramakrishnan Ramanathan (2012), dan dari pertemuan awal dengan para pimpinan hipermarket di Jakarta, di kemukakan bahwa faktor-faktor yang memengaruhi bisnis ritel adalah: 1) peningkatan produk konsumen rumah tangga, 2) peningkatan produk konsumen makanan dan minuman, 3) peningkatan produk konsumen elektronik, 4) peningkatan populasi, 5) peningkatan jumlah toko ritel.…”

Does the degree of retailer international involvement affect retailer performance?

“…This involvement by retailers in the international arena is expected to not only grow, but to accelerate. In recent years, this growing retailer involvement in the global market has attracted the attention of marketing scholars as an important research area (Chan, Finnegan, and Sternquist 2011;Evans, Tredgold, and Mavondo 2000;Gielens and Dekimpe 2001;Vida 2000). The focus of much of this research has been on what motivates retailers to venture into foreign markets, why they choose particular markets, the strategies employed, and what factors have contributed to retail failures in international markets (Alexander, Rhodes, and Myers 2011;Dawson 1994;Evans, Mavondo, and Bridson 2008;Pellegrini 1994).…”