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Article
Publication date: 7 January 2014

Anders Pehrsson and Tobias Pehrsson

The purpose is to extend the understanding of the resource base of the industrial firm's greenfield expansion on a foreign country market once a wholly owned subsidiary has been…

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Abstract

Purpose

The purpose is to extend the understanding of the resource base of the industrial firm's greenfield expansion on a foreign country market once a wholly owned subsidiary has been established.

Design/methodology/approach

A conceptual framework is developed relying on the resource-based theory of strategy. Resource bases in terms of value-adding activities of four Swedish industrial firms' subsidiaries in the USA are analysed. Four theoretical propositions are formulated regarding consistent associations among the activities and contingencies that are relevant to expansion on a foreign country market.

Findings

The propositions show how foreign subsidiaries' value-adding activities are aligned with two contingencies: the corporate strategy manifested by the product/market knowledge transferred from the parent firm that enable local expansion and the subsidiary's knowledge of competition barriers that obstruct local expansion. The value-adding activity may be basic or advanced and may repeat the parent firm's activity.

Research limitations/implications

US subsidiaries of four Swedish industrial firms were analysed. The propositions may be turned into hypotheses suitable for tests in statistical studies. A test may include firms from different home countries and subsidiaries on different host country markets.

Practical implications

The conceptual framework and the propositions provide a ground for an industrial firm's decision to conduct a strategy of greenfield expansion on a foreign country market once a wholly owned subsidiary has been established.

Originality/value

The framework is unique and emphasizes that both knowledge stemming from corporate strategy and knowledge of local competition need to be acknowledged in order to understand firm's greenfield expansion on a foreign country market.

Details

European Business Review, vol. 26 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Open Access
Article
Publication date: 31 March 2021

Marzanna Katarzyna Witek-Hajduk, Anna Małgorzata Grudecka and Anna Napiórkowska

The aim of this paper is to identify ways and motives of application of e-commerce in the foreign expansion of small and medium enterprises (SMEs) fashion brands.

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Abstract

Purpose

The aim of this paper is to identify ways and motives of application of e-commerce in the foreign expansion of small and medium enterprises (SMEs) fashion brands.

Design/methodology/approach

A multiple case study was used as the research method. Data were obtained from primarily in-depth interviews with managers of four Polish SMEs –fashion brands owners, whose products are sold in the foreign markets using e-commerce, and secondary sources.

Findings

Through this study the authors identified both strategic-proactive and market-reactive motives of e-commerce applications in SMEs’ fashion brands in the internet-enabled foreign expansion and three different models of usage of e-commerce in the foreign expansion of SMEs.

Research limitations/implications

The research was based on the multiple case study of only Polish SMEs in the fashion industry. The conclusions of this study can be applied by fashion companies in their internet-based foreign expansion.

Originality/value

This study contributes to the existing body of literature on the internationalization process of SMEs, and particularly on the application of cross-border e-commerce in the foreign internet-enabled expansion of fashion SMEs by identifying three various models of applying e-commerce, in the internet-enabled foreign expansion and their both proactive and reactive motives.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 26 no. 1
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 23 October 2018

Renata Maria Gomes, Jorge Carneiro and Luis Antonio Dib

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.

Abstract

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).

Details

International Journal of Retail & Distribution Management, vol. 46 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 January 2006

Francisco J. Mas, Juan L. Nicolau and Felipe Ruiz

The purpose of this study is to examine the impact on firm performance of foreign concentration vs diversification strategies, as well as the moderating role played by market

5140

Abstract

Purpose

The purpose of this study is to examine the impact on firm performance of foreign concentration vs diversification strategies, as well as the moderating role played by market, product and firm characteristics.

Design/methodology/approach

Moderated regression analysis is used.

Findings

Distribution and cultural distance (CU) moderate the relationship between foreign concentration‐diversification and stock market performance; while the non‐repetitive character of product purchase moderates the relationship at an accounting performance level.

Research limitations/implications

First, the lack of information prevented us from examining other groups of determining factors. Second, the possible existence of bias in the results due to the selection of stock market quoted firms.

Practical implications

Managers must realise that CU, distribution channel, and the product factor of non‐repeat purchase, play an important role in the choice of a concentration vs diversification strategy when explaining business results. Government authorities should develop training programmes for firms located in middle‐income countries in order to detect the CU with target markets, as well as the development of effective distribution channels and of product strategy in these markets.

Originality/value

The findings of this study and the implications proposed show the relevance of this topic. The paper focuses on a middle‐income country (Spain) and uses two measurements of firm performance: an accounting rate and a market measure based on the event‐study (excess returns on the stock market generated by the announcement of a foreign expansion).

Details

International Marketing Review, vol. 23 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 9 May 2016

Anders Pehrsson

A multinational firm’s expansion in a foreign market is a key issue of international business. The purpose of this study is to extend the understanding of essential drivers that…

Abstract

Purpose

A multinational firm’s expansion in a foreign market is a key issue of international business. The purpose of this study is to extend the understanding of essential drivers that will facilitate firm’s assessment of alternative modes of sequential expansion.

Design/methodology/approach

The study applies the knowledge-based view and explores a multinational firm’s sequential post-entry expansion in a foreign market. Event histories of Swedish industrial firms’ establishments of wholly owned subsidiaries in Germany, the UK and the USA were explored using Cox regression.

Findings

Broad market experiences stemming from corporate strategy and deep experiences from the preceding subsidiary increase the likelihood of a sequential investment. Effects of broad experiences are contingent on the context specified by the geographic scope of the firm and its general subsidiary experience.

Research limitations/implications

The study contributes to international expansion theory and integrates sources of knowledge originating from strategy theory and internationalization theory. The study shows that the dual approach is needed to understand international expansion.

Practical implications

In evaluating a further subsidiary investment in a foreign market, the multinational firm is advised to assess whether it possesses enough market experiences to justify the investment. The experiences should be associated with corporate strategy, the previous wholly owned subsidiary and the context specifications identified in the study.

Originality/value

The study is unique, as it addresses the simultaneous impact of broad and deep market experiences. Also, the inclusion of central context specifications makes the study novel.

Details

European Business Review, vol. 28 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 5 December 2016

Han-Mo Oh, Dennis B. Arnett and Sang Bong An

A appreciable number of exporters have successfully developed their markets in foreign countries although they have little prior experience in those countries. Advocating that…

1143

Abstract

Purpose

A appreciable number of exporters have successfully developed their markets in foreign countries although they have little prior experience in those countries. Advocating that indirect learning plays a crucial role in explaining this phenomenon, the purpose of this paper is attempted to investigate whether and how learning indirectly from competitors and interfirm relationships enables exporters to successful expand their business into foreign markets.

Design/methodology/approach

Drawing on the knowledge-based theory of the firm and the late-mover advantage theory, the authors developed an empirically testable model that explains and predicts the effects of indirect learning on the success of export market expansion. The model was tested using a complied archival data set in regard to exporters’ market expansion events and international accounting. The sampling frame was the events of Korean exporters’ market expansion.

Findings

Empirical evidence shows that exporters’ indirect learning from domestic, local, global competitors and from interfirm relationships influence their success of market expansion. In addition, indirect learning from domestic rivals and from interfirm relationships has a more positive effect on the success of expansion into emerging markets than into developed markets.

Research limitations/implications

Because the authors employed an event-study method, the limitations of this method can be applied to the present research. In addition, because of the empirical context, the results of the research may lack generalizability. The authors, however, provided an understanding how an exporter can succeed in a foreign market specifically when it has lack of direct experience in the market.

Practical implications

The results of the current research suggested that an exporter should try to learn from local, domestic, and global rivals experienced in a foreign market in order to succeed in the market. In addition, exporters should be affiliated with business groups or partnerships because these affiliations can strengthen the information-sharing mechanisms. Moreover, an exporter should focus first on learning from local rivals and then domestic rivals in order to develop proper expansion strategies. Finally, an exporter should attempt to more actively learn from rivals and interfirm relationships when it targets an emerging market than a developed market.

Originality/value

Prior studies have emphasized the effects of a firm’s direct learning on market development success. The authors, however, filled a knowledge gap of the impacts of learning in two aspects. First, the authors provided an understanding of the effects of indirect learning on market expansion success. Second, the authors demonstrated these effects in the context of export.

Details

Journal of Korea Trade, vol. 20 no. 4
Type: Research Article
ISSN: 1229-828X

Keywords

Article
Publication date: 1 January 2012

Lisa Qixun Siebers

This paper aims to examine the important factors that influence foreign retailers' expansion in China. By doing so the paper proposes business strategies for foreign retailers to

6954

Abstract

Purpose

This paper aims to examine the important factors that influence foreign retailers' expansion in China. By doing so the paper proposes business strategies for foreign retailers to be successful in China and other emerging economies.

Design/methodology/approach

A case study approach is employed to build theory. Five case studies were chosen, including the world's four largest retail firms: Wal‐Mart, Carrefour, Metro and Tesco, as well as the Japanese department store Heivado.

Findings

The paper identifies six important activities in successful retail expansion: adaptation to the external environment; responses to psychic distance; establishment of business networking; localization; entry strategies into new areas; and the role of local management team. A new framework articulates the interdependent relationships between various factors embedded in retail internationalization, including external environment, internal drivers, psychic distance, and expansion strategies.

Practical implications

The findings provide directions to managers of international retail firms on how to expand successfully in an emerging market.

Originality/value

This paper offers an exploratory framework on post‐entry expansion, which provides an indispensable link between previous research on pre‐entry and entry stages of retailer expansion and future research on foreign retailers' performance.

Details

Journal of Business Strategy, vol. 33 no. 1
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 28 March 2008

Jody Evans, Kerrie Bridson, John Byrom and Dominic Medway

In the light of recent changes in the international environment, the purpose of this paper is to consider whether the drivers of, and impediments to, retail internationalisation…

11878

Abstract

Purpose

In the light of recent changes in the international environment, the purpose of this paper is to consider whether the drivers of, and impediments to, retail internationalisation and the business strategy adopted have also changed.

Design/methodology/approach

Interviews were conducted with 12 UK and US retailers. These exploratory data were combined with a review of the literature to explore changes in the drivers and impediments of retail internationalisation.

Findings

Findings of this study suggest that, while a variety of factors drive retail internationalisation, profit growth is the most dominant motivator. In terms of impediments to foreign expansion, domestic market conditions were a barrier to the initiation of foreign expansion, whilst the regulatory environment and previous experiences presented obstacles in the process of internationalisation. Interviewees also expressed a desire for increased standardisation, while acknowledging the need for a substantial degree of adaptation in response to cultural differences.

Research limitations/implications

The research findings are limited in terms of their generalisability.

Originality/value

Much of the existing research into retail internationalisation was conducted in the 1990s. Given the substantial changes that have occurred over the past 15 years, the value of this paper lies in the updating of knowledge.

Details

International Journal of Retail & Distribution Management, vol. 36 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 June 2005

Lisa Maharajh and Jeanne Heitmeyer

This research investigated the foreign expansion of US‐owned retailers into the Latin American markets of Mexico, Argentina, Chile and Brazil. The purpose of this study was to…

5108

Abstract

Purpose

This research investigated the foreign expansion of US‐owned retailers into the Latin American markets of Mexico, Argentina, Chile and Brazil. The purpose of this study was to determine how important the following factors were in a retailer's decision to establish a presence in Latin America: political and economic stability of the country, retail market size and growth, real estate issues, government regulations in terms of types of entry modes, customer base or target market, competition, and technical feasibility. This study also determined if there was a significant difference in these factors for US‐owned retailers who were interested in international retailing and US‐owned retailers who were not interested in international expansion.

Design/methodology/approach

Data were gathered via a questionnaire administered to vice‐presidents of the international development division for US retail companies.

Findings

Factors determined important for a retailer's decision to expand into an international market were political and economic stability of the country and the size of the retail market. The least important factor was the technical feasibility. Retailers interested in expansion into Latin America and retailers not interested in expansion into Latin America did not score the factors significantly different.

Originality/value

This study identifies factors important for expansion into the international marketplace. Success in these ventures is necessary for the economic well‐being of the retail industry.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 9 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…

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Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

Keywords

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