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

Abstract

International audienceWhenever 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

Factors affecting small and medium family businesses' internationalisation in Saudi Arabia

“…The sampling technique adopted would be 'stratified'. This is consistent with the practice also adopted by a recent study in internationalisation conducted in France where the authors also conducted a questionnaire survey of top managers only (Picot-Coupey et al, 2014).…”

The Supporting Role of Logistics during the Early Stage of Retail Internationalisation

“…Swoboda et al 2007), entry mode strategies (e.g. Doherty 1999;Picot-Coupey et al 2014) and retail format transfer (e.g. Goldman 2001;Swoboda and Elsner 2013).…”

“…Another important selection criterion was retail chains that have been present in at least one of their new foreign markets for a minimum of three years in order to gain an understanding of the time and occurrences after the first establishment period. In addition, retailers that establish themselves with physical stores have been selected as this is the most common approach among large retail chains (Elsner 2012;Picot-Coupey et al 2014) and therefore is relevant to the generalisability of the findings. In addition, online stores have also been covered to some extent because the importance of having an online presence has rapidly increased in foreign sales markets (Picot-Coupey et al 2014).…”

The Process of Retail Internationalization in the Chinese Market: A Case of Japanese Fashion Company

“…According to Picot-Coupey et al (2012), there are five types of fashion retail formats with different characteristics and effects. As companies develop into foreign markets, they may attempt a variety of expansion modes, each of which might be greatly affected by various factors.…”