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

Karine Picot-Coupey, Steve L. Burt and Gérard Cliquet
Additional contact information
Steve L. Burt: University of Stirling
Gérard Cliquet: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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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.

Keywords: fashion retailing; internationalization theories; PLS-SEM; Foreign operation mode; retail internationalization (search for similar items in EconPapers)
Date: 2014-11
New Economics Papers: this item is included in nep-cse
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01075645
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Citations: View citations in EconPapers (7)

Published in Journal of retailing and consumer services, 2014, 21 (6), pp.976-991. ⟨10.1016/j.jretconser.2014.08.018⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01075645

DOI: 10.1016/j.jretconser.2014.08.018

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