The global retailer's strategic proposition and choice of entry mode

Abstract

Purpose

The main aim of this paper is to provide research propositions that explain global retailers' international expansion. Global retailers are considered to be concentralized‐standardized retail formats.

Design/methodology/approach

Research literature is used to develop the concepts related to predicting international expansion. Examples from retailers are used to set the stage for proposition development.

Findings

Seven propositions are provided for further examination. These propositions are related to unique retail concept, private brands, unique capability, internalization advantages, pioneering advantages, resource availability, governance resources, and growth experience.

Research limitations/implications

This is a conceptual paper leading to development of propositions for further testing. An empirical analysis is required to determine whether the theoretical connections can be proven.

Originality/value

The major value of the paper is the melding of theory and retail examples to explain the international expansion of a particular type of retailer. Global retailers are centralized and standardized, thereby providing an expansion opportunity in the area of franchising.

Citation

Park, Y. and Sternquist, B. (2008), "The global retailer's strategic proposition and choice of entry mode", International Journal of Retail & Distribution Management, Vol. 36 No. 4, pp. 281-299. https://doi.org/10.1108/09590550810862688