- Research Article
- Published:
An empirical study on the timing of big retailers’ initial internationalization: Influence of the target market and entry-mode choice
Frontiers of Business Research in China volume 4, pages 608–629 (2010)
Abstract
This paper examines the timing of big retailers’ initial internationalization and proposes a theoretical framework. Then, the framework is tested with the proportional hazard model and data of European and U.S. big retailers. Empirical results show that retailers’ entry timing is jointly influenced by the economic conditions of both the home market and target foreign markets, cultural and geographical distance, and the entry mode. Based on these findings, this article offers suggestions to China’s big retailers whose initial internationalization has just started.
References
Agarwal S, Ramaswami S N (1992). Choice of foreign market entry mode: Impact of ownership, location and internationalization factors. Journal of International Business Studies, 23(1): 1–27
Anderson E, Gatignon H (1986). Mode of entry: A transaction cost analysis and propositions. Journal of International Business Studies, 17(3): 1–26
Barkema H G, Vermeulen F (1998). International expansion through start-up or acquisition: A learning perspective. Academy of Management Journal, 41(1): 426–442
Barkema H G, Bell J H, Pennings J M (1996). Foreign entry, cultural barriers, and learning. Strategic Management Journal, 17(2): 151–166
Bell J (1997). A comparative study of the export problems of small computer software exporters in Finland, Ireland and Norway. International Business Review, 6(6): 585–604
Bell J, McNaughton R, Young S, Crick D (2003). Towards an integrative model of firm internationalization. Journal of International Entrepreneurship, 1(1): 339–362
Benito G R, Gripsrud G (1992). The expansion of foreign direct investment: Discrete rational location choices or a culture learning process? Journal of International Business Studies, 23(3): 461–476
Bilkey W J, Tesar G (1977). The export behavior of small-sized Wisconsin manufacturing firms. Journal of International Business Studies, 8(1): 93–98
Buckley P J, Casson M (1981). The optimal timing of a foreign direct investment. The Economic Journal, 91: 75–87
Casson M (1987). The Firm and the Market: Studies on Multinational Enterprises and the Scope of Firm. Cambridge, MA: MIT Press
Chain Store Age (1997). Retailing’s great global gold rush. Global Retailing Supplement, 3–11
Timothy C, Pugh D S (2001). Foreign country priorities in the internationalization process: A measure and an exploratory test on British firms. International Business Review, 10(3): 285–303
Coviello N (2006). The network dynamics of international new ventures. Journal of International Business Studies, 37(5): 713–731
Cox D R (1972). Regression models and life tables. Journal of the Royal Statistics Society, 34: 187–220
Davidson W H (1980). The location determinants of direct investment activity: Country characteristics and experience effects. Journal of International Business Studies, 11(2): 9–22
Deloitte Touche Tohmatsu (2006). Global Powers of Retailing. www.deloitte.com
Diericks L, Cool K, Barney J B (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35(12): 1504–1514
Douglas S P, Craig C S (1995). Global Marketing Strategy. New York: McGraw-Hill
Dunning J H (1973). The determinants of international production. Oxford Economic Papers, 25(3): 289–336
Dunning J H (1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1): 1–31
Dunning J H (1992) Multinational Enterprises and the Global Economy. Reading, MA: Aaaison-Wesley
Ekeledo I, Sivakumar K (1998). Foreign market entry mode choice: A modified transaction cost analysis approach. Journal of Marketing, 57(3): 19–38
Gaba V, Pan Y G, Ungson G R (2002). Timing of entry in international market: An empirical study of U.S. fortune 500 firms in China. Journal of International Business Studies, 33(1): 39–55
Global Production Networks (GPN) (2003). The internationalization/globalization of retailing: Towards a geographical research agenda? GPN working paper 8
Hadjikhani A (1997). A note on the criticisms against the internationalization process model. Management International Review, 37(2): 43–66
Hennart J F, Young R P (1994). Location, governance, and strategic determinants of Japanese manufacturing investments in United States. Strategic Management Journal, 15: 419–436
Hill C W, Hwang P Kim W C (1990). An eclectic theory of the choice of international entry mode. Strategy Management Journal, 11: 117–128
Hofstede G (1980). Culture’s Consequence: International Difference in Work-Related Values. Beverly Hills, CA: Sage Publications
Jones G K, Coviello N E (2005). Internationalization: Conceptualizing an entrepreneurial process of behavior in time. Journal of International Business Studies, 36(3): 284–303
Kerin R P, Varadarajan P R, Peterson R A (1992). First-mover advantage: A synthesis, conceptual framework, and research propositions. Journal of Marketing, 56: 33–52
Kim W C, Hwang P (1992). Global strategy and multinationals’ entry mode choice. Journal of International Business Studies, 23(1): 29–53
Kogut B, Singh H (1988). The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19: 411–432
Leonidou LC, Katsikeas C S (1996). The export development process: An integrative review of empirical models. Journal of International Business Studies, 27(3): 517–551
Lieberman M B, Montgomery D B (1988). Fist-mover advantage. Strategy Management Journal, 19: 41–58
Lieberman M B, Montgomery D B (1998). First mover (dis)advantages: Retrospective and link with the resource-based view. Strategy Management Journal, 19: 1111–1125
Lippman S A, Rumelt R P (1982). An analysis of interfirm differences in efficiency under competition. Bell Journal of Economics, 13(2): 418–438
Luo Y D (1998). Timing of investment and international expansion performance in China. Journal of International Business Studies, 29(2): 391–408
Madhok A (1997). Cost, value and foreign market entry mode: The transaction and the firm. Strategy Management Journal, 18(1): 39–61
Mascarenha B (1992). Order of entry and performance in international markets. Strategy Management Journal, 13: 531–543
McGoldrick P J, Davies G (1995). International Retailing: Trends and Strategies. London: Pitman Publishing
Mitra D, Golder P N (2002). Whose culture matters? Near-market knowledge and its impact on foreign market entry timing. Journal of Marketing Research, 39: 350–365
Moen O, Morten G, Endresen I (2004). Internationalization of small computer software firms: Entry forms and market selection. European Journal of Marketing, 38: 1236–1251
Ojala A, Tyrvainen P (2007). Market entry and priority of small and medium-sized enterprises in the software industry: An empirical analysis of cultural distance, geographical distance and market size. Journal of International Marketing, 15(3): 123–149
Oviatt B M, McDougal P P (1997). Challenges for internationalization process theory: The case of international new ventures. Management International Review, 37(2): 85–99
Porter M E (1991). Towards a dynamic theory of strategy. Strategic Management Journal, 12: 95–117
Rothaermel F T, Kotha S, Steensma H K (2006). International market entry by U.S. internet firms: An empirical analysis of country risk, national culture, and market size. Journal of Management, 32(1): 56–82
Sivakumar K (2002). Simultaneous determination of entry timing and involvement level: An optimization model for international marketing. International Marketing Review, 19(1): 21–38
Spence M (2003). International strategy formation in small Canadian high-technology companies: A case study approach. Journal of International Entrepreneurship, 1(3): 277–296
Sricastava R K, Green R T (1986). Determinants of bilateral trade flows. Journal of Business, 59(4): 623–640
Szymanski D M, Troy L C, Bharadwaj S G (1995). Order of entry and business performance: An empirical synthesis and reexamination. Journal of Marketing, 59: 17–33
Terpstra V, Sarathy R (1994). International Marketing, 6th ed. Fort Worth, TX: Dryden Press
Terpstra V, Yu C M (1988). Determinants of foreign investment of U.S. advertising agencies. Journal of International Business Studies, 19(1): 33–46
Woodcock P C, Beamish P W, Makino S (1994). Ownership-based entry mode strategies and international performance. Journal of International Business Studies, 25(2): 253–273
Wrigley N, Lowe M (2002). Reading Retail: A Geographical Perspective on Retailing and Consumption Space. London: Arnold
Author information
Authors and Affiliations
Corresponding author
Additional information
__________
Translated from Zhongguo Ruankexue 中国软科学 (China Soft Science), 2009, (1): 97–111
Rights and permissions
About this article
Cite this article
Cai, R., Wang, Y. An empirical study on the timing of big retailers’ initial internationalization: Influence of the target market and entry-mode choice. Front. Bus. Res. China 4, 608–629 (2010). https://doi.org/10.1007/s11782-010-0113-0
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11782-010-0113-0