Towards a conceptual model of the impacts of retail internationalisation
John Dawson, Professor of Marketing, The University of Edinburgh
Abstract
Much of the research literature on retailer internationalisation has focused on the reasons why retailers internationalise, retailers' choices of entry country and methods of entry. Surprisingly little research has been undertaken on the impacts of internationalisation processes on the firms involved, on the retail sector of the host country or on consumers in the host countries.
The paper proposes a general model in which these impacts can be considered. The model provides a framework for analysis of the impacts of internationalisation and so might enable informed debate on the need for public policy interventions in the process. The model might also be used to inform possible research agendas into impacts of internationalisation. This paper is a first step in the development of the model and is written with a view to the paper being used as the basis for discussion and elaboration. The ideas in the paper are at a relatively early stage of development and contributions will be sought on how to develop the model. In considering the impacts of internationalisation it is suggested that it is necessary to distinguish between
- types of impacts, and
- the level of intensity of impacts.
It is also necessary to consider specific events of internationalisation, i.e. the entry into a country of a firm. At this stage of our knowledge it is not realistic to generalise across countries or across retail sectors. The overall impact of an internationalisation event can be a portfolio of types of impact, each of which has different intensity. The figure shows a way of classifying the types of impact into four main areas. Within each area there are a number of types of impact, with examples provided in the figure. The intensity of impact can be considered as a function of several variables.
- Impact intensity = fn (company's adaptation to the culture and environment, company commitment to the new market, size of firm, responses of competition, public policy intervention)
The paper will explore this general model, make a case for considering the four areas of impact and for the determinants of intensity of impact. The paper will provide examples from firms that have been involved in internationalisation. The paper will also consider the issue of what constitutes 'success' in respect of retail internationalisation.
