Retail Internationalization: Analysis of Market Entry Modes, Format Transfer and Coordination of Retail Activities (Handel und Internationales Marketing Retailing and International Marketing)

The doctoral thesis investigates various strategies in the area of going and being international of retail firms which is of undisputable relevance due to the fairly narrow research status and the increasing internationalization of retail activities. Issues are investigated concerning the choice of retail market entry modes, i.e., the form of institutional arrangements that retailers use when entering foreign markets, the retail format transfer, i.e., the management of internal processes and the external marketing program elements and the coordination of retail activities, i.e., the implementation of the marketing program by the organizational structure. Regarding this, three important research questions are addressed:1) How do choose retailers their market entry mode in the area of conflict between full and shared-controlled modes and how is this decision influenced by the internal and external environment? 2) How can international retailers transfer their retail format successfully to foreign countries by standardizing or adapting the internal and external elements of their retail format? 3) How can retailers successfully coordinate the implementation of their retail marketing program to culturally diversified markets? These questions are investigated on the basis of established theories applied from the international management literature such as institutional theory, the resource-based view and the profit maximization theory. On the basis of comprehensive primary and secondary datasets, important implications are drawn for research and practice. ​ Foreword 6 Acknowledgements 8 Table of Contents 10 List of Figures 15 List of Tables 16 List of Abbreviations 18 A. Introduction 21 1. Relevance and Focus 21 2. Research Gaps and Questions 25 2.1. Main Decisions on Retail Internationalization 25 2.2. Literature Review 26 2.2.1 Retail Market Entry Mode Choice 26 2.2.2 Retail Format Transfer 32 2.2.3 Organization and Coordination of International Retail Activities 45 2.3. General Research Objectives 49 3. Structure of and Contributions by the Studies 51 3.1. Study 1 – Retail Market Entry Mode Choice 51 3.2. Study 2 – Retail Format Transfer 54 3.3. Study 3 – Organization and Coordination of International Retail Activities 56 4. Further Remarks 59 B. Study 1 – Effects of Institutionalized Entry Modes on Entry Mode Choices 61 1. Introduction 61 2. Literature on Institutional Theory in Entry Mode Choice 64 3. Theoretical Foundation 66 4. Conceptual Framework and Hypotheses Development 68 4.1. Institutionalized Entry Mode and Subsequent Entry Mode Choice 69 4.2. Moderating Effects of the External Institutional Environment 70 4.2.1 Political Distance 71 4.2.2 Cultural Distance 72 4.3. Moderating Effects of Internal Capabilities 73 4.3.1 International Experience 73 4.3.2 Internationalization Speed 74 5. Empirical Study 75 5.1. Data Set 75 5.2. Measurement of Variables 77 5.2.1 Dependent Variable 77 5.2.2 Independent Variables 77 5.2.3 Control Variables 79 5.3. Method 80 5.4. Results 83 5.4.1 Model Fit 83 5.4.2 Main Effect 85 5.4.3 Moderating Effects 85 5.4.4 Control Variables. 88 6. Discussion 88 6.1. Research Implications 89 6.2. Managerial Implications 91 6.3. Limitations and Further Research 93 C. Study 2 – Transferring the Retail Format Successfully into Foreign Countries 95 1. Introduction 95 2. Theoretical Foundation and Conceptual Framework 98 3. Literature Review and Hypotheses Development 102 3.1. Relationships between Processes and Marketing Program Elements 102 3.1.1 Core Processes and Core Marketing Programs 103 3.1.2 Core Processes and Peripheral Marketing Programs 104 3.1.3 Peripheral Processes and Peripheral Marketing Programs 106 3.2. Relationships between Processes, Marketing Program Elements and Performance 107 3.2.1 Marketing Programs and Performance 108 3.2.2 Processes and Performance 110 4. Empirical Study 111 4.1. Sample Design 111 4.2. Measurement of Variables 113 4.3. Methodological Approach 117 4.4. Results 118 5. Discussion 122 5.1. Core Results 122 5.2. Theoretical Implications 123 5.3. Managerial Implications 127 5.4. Limitations and Further Research 128 D. Study 3 – Successful Organization and Coordination of International Retail Activities 130 1. Introduction 130 2. Literature Review 132 2.1. Impact of the Degree of Marketing Program Standardization on Foreign Performance 133 2.2. Impact of the Organizational Structure employed on Foreign Performance 135 2.3. Impact of Both on Foreign Performance 137 3. Theoretical Foundation 138 4. Conceptual Framework and Hypotheses Development 139 4.1. The Degree of Marketing Program Standardization and Foreign Performance 141 4.2. The Degree of Centralization of Decision-making and Foreign Performance 143 4.3. The Degree of Formalization of Rules and Procedures and Foreign Performance 145 5. Empirical Study 147 5.1. Data Collection and Sample Characteristics 147 5.2. Measurement of Variables 149 5.3. Methodical Approach 155 5.4. Results 155 6. Discussion 159 6.1. Main Conclusions 159 6.2. Implications for Research and Practice 161 6.3. Limitations and Further Research 163 E. Final Remarks 165 1. Discussion and Conclusions 165 1.1. Core Results 165 1.2. Research Implications 168 1.3. Managerial Implications 171 2. Further Research 174 References 177 Appendix 212 Retail internationalization is gaining importance in retail practice, but the research status is still fairly narrow. Stefan Elsner aims to close this gap by investigating three important challenges within the retail internationalization process: the appropriate choice of market entry modes, the successful retail format transfer and the successful organizational structure abroad. Based on substantial macro-economic data and comprehensive interviews with retail firms operating internationally, the results emphasize the necessity of an established frame that provides the general direction, but leaves enough room for adaptations. Based on this finding, important implications can be drawn for research and practice. Contents · Entry Mode Choice · Format Transfer · Standardization and Adaptation · Organizational Structure Target Groups · Researchers and students of business administration with majors in marketing and international management. · Executives, managers and experts in the area of corporate management, international expansion and subsidiary management. About the author Dr. Stefan Elsner worked as a research and teaching associate at the Chair of Marketing and Retailing at the University of Trier Front Matter....Pages I-XXI Introduction....Pages 1-40 Study 1 – Effects of Institutionalized Entry Modes on Entry Mode Choices....Pages 41-74 Study 2 – Transferring the Retail Format Successfully into Foreign Countries....Pages 75-109 Study 3 – Successful Organization and Coordination of International Retail Activities....Pages 111-145 Final Remarks....Pages 147-158 Back Matter....Pages 159-199