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Internationalization and Performance of Retail Firms: A Bayesian Dynamic Model

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  • Assaf, A. George
  • Josiassen, Alexander
  • Ratchford, Brian T.
  • Barros, Carlos Pestana

Abstract

This paper offers a fresh approach to the literature examining the effect of internationalization on retail-firm performance. We draw on the organizational learning theory to test the moderating effect of four variables which are hypothesized to affect the performance of internationalizing retailers through facilitating the transfer of learning in international markets. The study innovates by introducing a new performance metric, and an advanced methodology to account for the dynamic aspects of organizational learning. Testing our hypotheses on a sample of international retailers, we find that the relationship between internationalization and performance is U-shaped, and moderated by mergers and acquisitions, age at entry to international markets and country of origin. The findings extend prior research by providing more comprehensive evidence regarding the conditions under which internationalization leads to improved performance. The authors conclude by outlining the implications for practice.

Suggested Citation

  • Assaf, A. George & Josiassen, Alexander & Ratchford, Brian T. & Barros, Carlos Pestana, 2012. "Internationalization and Performance of Retail Firms: A Bayesian Dynamic Model," Journal of Retailing, Elsevier, vol. 88(2), pages 191-205.
    • Handle: RePEc:eee:jouret:v:88:y:2012:i:2:p:191-205
    DOI: 10.1016/j.jretai.2011.11.005
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    9. Rúben Rocha & Anderson Rei Galvão & Carla Susana Marques & Carla Mascarenhas & Vítor Braga, 2020. "Cooperation Networks and Embeddedness—The Case of the Portuguese Footwear Sector," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    10. Hien Thi Ngoc Huynh & Phuong V. Nguyen & Khoa T. Tran, 2018. "Internationalization and Performance of Vietnamese Manufacturing Firms: Does Organizational Slack Matter?," Administrative Sciences, MDPI, vol. 8(4), pages 1-15, October.
    11. Hosseini, Mojtaba & Brege, Staffan & Nord, Tomas, 2018. "A combined focused industry and company size investigation of the internationalization-performance relationship: The case of small and medium-sized enterprises (SMEs) within the Swedish wood manufactu," Forest Policy and Economics, Elsevier, vol. 97(C), pages 110-121.
    12. Chun Ju Lin, 2015. "How Information from Taiwan-based Enterprises in China Influences Investment Decisions of China-based Service Enterprises in Taiwan," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 167-197, June.
    13. Johlke, Mark C. & Iyer, Rajesh, 2013. "A model of retail job characteristics, employee role ambiguity, external customer mind-set, and sales performance," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 58-67.
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