Purpose The purpose of this paper is to identify patterns for the intra-market expansion of international branded retailers on a continent-sized emerging market using the network approach. Design/methodology/approach A multiple-case study design of four foreign branded retailers that have expanded onto regional markets in Brazil is used. Findings The intra-market expansion process shares similarities with the cross-market expansion process; is influenced by the relationships of foreign branded retailers with local competitors and shopping mall firms; and market selection, mode of operation and store location decisions are interrelated and conjointly taken, instead of forming a three-stage process. Additionally, the importance of relationships with host market shopping malls firms is highlighted. Research limitations/implications This paper advances a conceptual model of the intra-market expansion process, which comprises a system of interrelated decisions – (regional) market selection, mode of operation and store location – influenced by several network effects. Practical implications Managers of foreign branded retail suffer from liability of foreignness when undertaking intra-market expansion. Although Brazil is a large market, the retail community is highly connected because of managers’ personal relationships. Brazilian shopping malls dominate suitable store locations, and represent a valuable source of knowledge and resources for the foreign branded retailer. Originality/value This paper addresses two under-researched aspects of international retail: branded retailers – manufacturers that develop brands and operate stores – and intra-market expansion (i.e. to geographic regions of a given foreign country). It also discusses the challenges of intra-market expansion in continent-sized emerging markets, with considerable regional diversity (culture, infrastructure and institutions).
Este é um artigo de acesso aberto, licenciado por Creative Commons Atribuição 4.0 Internacional (CC BY 4.0), sendo permitidas reprodução, adaptação e distribuição desde que o autor e a fonte originais sejam creditados. ABSTRACTThere is no agreement upon the set of dimensions to be used to categorize distinct types of retailers and, consequently, it is difficult to disentangle the particularities of the internationalization trajectories of specific types of retailers. In this article, we propose a taxonomy of the firms involved in international retailing and discuss the differences in the internationalization patterns of the retail business across the types of retailers. The data was collected from an extensive review of the literature on retail internationalization and from several secondary sources, such as a report of a research institute and retailers' websites, as well as from visits to stores. The proposed taxonomy identifies three distinct types: (i) traditional retailers, (e.g., Walmart, JCPenney), which distribute a varied array of third parties' brands, (ii) specialized branded retailers (e.g., Zara, H&M), which are exclusive distributors of their own brands, and (iii) direct branded retailers (e.g., Adidas, Louis Vuitton), firms that are brand manufacturers' that are also distributors of their brands, but in a non-exclusive manner, as such brands are also distributed through other retailers. This contingent view of retail internationalization helps overcome two week points this field has: (i) the pervasive research practice of employing mixed samples of distinct types of retailers; and (ii) the inadvertent focus on traditional retailers, such as supermarkets and department stores, as if they were representative of the population of international retailers as a whole, which contrasts with the noticeable increase in the international retail distribution of consumer products through monobranded stores.Keywords: retail internationalization, retailer types, taxonomy. RESUMOA literatura carece de uma identificação clara dos diferentes tipos de firmas envolvidas com atividades varejistas internacionais, dificultando a identificação das particularidades da traje-
ResumoUma vez que as exportações afetam o desempenho das empresas e também o crescimento econômico dos países, é importante que se tenha uma melhor compreensão dos fatores que influenciam o envolvimento de empresas com a exportação. Com isso, os governos podem ser municiados de informação para o planejamento de programas eficazes para estimular a exportação. Este estudo com empresas brasileiras manufatureiras, exportadoras e não exportadoras, analisa as percepções dos gestores sobre os benefícios e as barreiras associados à exportação, bem como sobre os recursos e as capacidades da empresa que a capacitam a exportar. A percepção das barreiras e custos associados à atividade parece ser semelhante entre as empresas que exportam habitualmente e as que não exportam, sugerindo que mesmo a experiência adquirida pelas primeiras não tem sido capaz de diminuir a percepção da intensidade das barreiras existentes.Palavras-chave: benefícios da exportação; barreiras à exportação; capacidades e recursos para exportação; Brasil. AbstractSince exports affect the performance of firms and are an important determinant of the economic growth of countries, it is important to have a better understanding of the factors that influence the involvement of firms with exports. Such understanding will provide Governments with proper information for effective support programs to stimulate exports. This study of manufacturing firmsexporters and non-exporterspresents managers' perceptions about the exports benefits and barriers, and about firms' resources and capabilities to export. The reported perception of barriers and costs associated with the exports are similar across experienced exporters and non-exporters, suggesting that accumulated exporting experience acquired by the former does not seem to diminish the perception of the intensity of export barriers.
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