IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v95y2019i3p30-46.html
   My bibliography  Save this article

The Effects of Retail Banner Standardization on the Performance of Global Retailers

Author

Listed:
  • Nath, Pravin
  • Kirca, Ahmet H.
  • Kim, Saejoon
  • Andras, Trina Larsen

Abstract

Global retailers often face an important decision about the extent to which they should standardize or adapt their retail banners, a choice that the authors refer to as retail banner standardization (RBS). Drawing on the international marketing and retailing literatures, this study investigates how RBS affects the performance of global retailers in a longitudinal sample of 69 global retailers from multiple countries and sectors, across ten years. Findings indicate that the role of banner standardization in the successful performance of global retailers depends on retailer and market-level characteristics. Specifically, the results demonstrate that RBS improves retailer profitability as retailers increase their global penetration and emphasize status-based differentiation. Findings also suggest that banner standardization has stronger effects on profitability as retailers increase their focus on emerging markets and e-commerce. However, the authors also find that while RBS increases profits at low levels of global diversity, this effect becomes non-significant as retailers expand to highly diverse foreign markets. As such, the study provides important implications for global retailers while also filling the gap in banner/brand standardization/adaptation research that lies at the intersection of retailing and international marketing.

Suggested Citation

  • Nath, Pravin & Kirca, Ahmet H. & Kim, Saejoon & Andras, Trina Larsen, 2019. "The Effects of Retail Banner Standardization on the Performance of Global Retailers," Journal of Retailing, Elsevier, vol. 95(3), pages 30-46.
    • Handle: RePEc:eee:jouret:v:95:y:2019:i:3:p:30-46
    DOI: 10.1016/j.jretai.2019.04.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022435919300223
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretai.2019.04.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Reinartz, Werner & Dellaert, Benedict & Krafft, Manfred & Kumar, V. & Varadarajan, Rajan, 2011. "Retailing Innovations in a Globalizing Retail Market Environment," Journal of Retailing, Elsevier, vol. 87(S1), pages 53-66.
    2. Sumantra Ghoshal, 1987. "Global strategy: An organizing framework," Strategic Management Journal, Wiley Blackwell, vol. 8(5), pages 425-440, September.
    3. Farok J Contractor & Sumit K Kundu & Chin-Chun Hsu, 2003. "A three-stage theory of international expansion: the link between multinationality and performance in the service sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 5-18, January.
    4. Schmid, Stefan & Kotulla, Thomas, 2011. "50 years of research on international standardization and adaptation--From a systematic literature analysis to a theoretical framework," International Business Review, Elsevier, vol. 20(5), pages 491-507, October.
    5. Aparna Joshi & Mila B. Lazarova & Hui Liao, 2009. "Getting Everyone on Board: The Role of Inspirational Leadership in Geographically Dispersed Teams," Organization Science, INFORMS, vol. 20(1), pages 240-252, February.
    6. Robert Jensen & Gabriel Szulanski, 2004. "Stickiness and the adaptation of organizational practices in cross-border knowledge transfers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(6), pages 508-523, November.
    7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    9. ter Braak, Anne & Deleersnyder, Barbara, 2018. "Innovation Cloning: The Introduction and Performance of Private Label Innovation Copycats," Journal of Retailing, Elsevier, vol. 94(3), pages 312-327.
    10. Ganesh Iyer, 1998. "Coordinating Channels Under Price and Nonprice Competition," Marketing Science, INFORMS, vol. 17(4), pages 338-355.
    11. Gabrielsson, Mika & Gabrielsson, Peter, 2011. "Internet-based sales channel strategies of born global firms," International Business Review, Elsevier, vol. 20(1), pages 88-99, February.
    12. Sungho Park & Sachin Gupta, 2012. "Handling Endogenous Regressors by Joint Estimation Using Copulas," Marketing Science, INFORMS, vol. 31(4), pages 567-586, July.
    13. Laszlo Tihanyi & David A Griffith & Craig J Russell, 2005. "The effect of cultural distance on entry mode choice, international diversification, and MNE performance: a meta-analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 270-283, May.
    14. 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.
    15. Özsomer, Aysegül & Batra, Rajeev & Chattopadhyay, Amitava & ter Hofstede, Frenkel, 2012. "A global brand management roadmap," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 1-4.
    16. Blut, Markus & Teller, Christoph & Floh, Arne, 2018. "Testing Retail Marketing-Mix Effects on Patronage: A Meta-Analysis," Journal of Retailing, Elsevier, vol. 94(2), pages 113-135.
    17. Gauri, Dinesh Kumar & Trivedi, Minakshi & Grewal, Dhruv, 2008. "Understanding the Determinants of Retail Strategy: An Empirical Analysis," Journal of Retailing, Elsevier, vol. 84(3), pages 256-267.
    18. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    19. N Capar & M Kotabe, 2003. "The relationship between international diversification and performance in service firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 345-355, July.
    20. Hsu, Chin-Chun & Pereira, Arun, 2008. "Internationalization and performance: The moderating effects of organizational learning," Omega, Elsevier, vol. 36(2), pages 188-205, April.
    21. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    22. Grewal, Dhruv & Iyer, Gopalkrishnan R. & Levy, Michael, 2004. "Internet retailing: enablers, limiters and market consequences," Journal of Business Research, Elsevier, vol. 57(7), pages 703-713, July.
    23. Jody Evans & Felix T Mavondo, 2002. "Psychic Distance and Organizational Performance: An Empirical Examination of International Retailing Operations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 515-532, September.
    24. Brian R Chabowski & Saeed Samiee & G Tomas M Hult, 2013. "A bibliometric analysis of the global branding literature and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(6), pages 622-634, August.
    25. Kendall Roth & David M Schweiger & Allen J Morrison, 1991. "Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(3), pages 369-402, September.
    26. Jan-Benedict E M Steenkamp & Rajeev Batra & Dana L Alden, 2003. "How perceived brand globalness creates brand value," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 53-65, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Batsakis, Georgios & Theoharakis, Vasilis & Li, Chengguang & Konara, Palitha, 2023. "Internationalization and digitalization: Their differing role on grocer and non-grocer retailer performance," Journal of Retailing, Elsevier, vol. 99(3), pages 400-419.
    2. Ballerini, Jacopo & Ključnikov, Aleksandr & Juárez-Varón, David & Bresciani, Stefano, 2024. "The e-commerce platform conundrum: How manufacturers' leanings affect their internationalization," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    3. Timothy J. Richards & Simba Pasirayi, 2024. "Food retailing in developing economies: Review of empirical insights and new directions," Agribusiness, John Wiley & Sons, Ltd., vol. 40(4), pages 926-949, October.
    4. Mamoun Benmamoun & Hadi Alhor & Christine Ascencio & Woojong Sim, 2021. "Social enterprises in electronic markets: web localization or standardization," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(1), pages 215-231, March.
    5. Li, Shenyu & Popkowsky Leszczyc, Peter T.L. & Qiu, Chun, 2023. "International retailer performance: Disentangling the interplay between rule of law and culture," Journal of Retailing, Elsevier, vol. 99(2), pages 193-209.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. A. George Assaf & Alexander Josiassen & Haemoon Oh, 2016. "Internationalization and hotel performance," Tourism Economics, , vol. 22(3), pages 572-592, June.
    2. Yuying Shi & Jeremy M. Lim & Barton A. Weitz & Stephen L. France, 2018. "The impact of retail format diversification on retailers’ financial performance," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 147-167, January.
    3. de Jong, Gjalt & van Houten, Jerry, 2014. "The impact of MNE cultural diversity on the internationalization-performance relationship," International Business Review, Elsevier, vol. 23(1), pages 313-326.
    4. Timo Mandler & Fabian Bartsch & C. Min Han, 2021. "Brand credibility and marketplace globalization: The role of perceived brand globalness and localness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1559-1590, October.
    5. Batsakis, Georgios & Theoharakis, Vasilis & Li, Chengguang & Konara, Palitha, 2023. "Internationalization and digitalization: Their differing role on grocer and non-grocer retailer performance," Journal of Retailing, Elsevier, vol. 99(3), pages 400-419.
    6. Timo Mandler & Fabian Bartsch & C. Min Han, 0. "Brand credibility and marketplace globalization: The role of perceived brand globalness and localness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-32.
    7. Dovev Lavie & Stewart R. Miller, 2008. "Alliance Portfolio Internationalization and Firm Performance," Organization Science, INFORMS, vol. 19(4), pages 623-646, August.
    8. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    9. Wirginia Doryń & Dorota Stachera, 2008. "Wpływ internacjonalizacji na wyniki ekonomiczne największych polskich przedsiębiorstw przemysłowych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 95-114.
    10. Feng, Cong & Xiang, Kexin, 2023. "Structural power of female executives and retailer profitability: A contingent resource-based perspective," Journal of Business Research, Elsevier, vol. 168(C).
    11. Ye, Silin & Zhou, Jing & Jiang, Yunwen & Liu, Xiaming, 2023. "Managers as the bridge: How cultural friction influences the integration of cross-border mergers and acquisitions," International Business Review, Elsevier, vol. 32(4).
    12. Thams, Yannick & Alvarado-Vargas, Marcelo J. & Newburry, William, 2016. "Geographical diversification as a predictor of MNC reputations in their home nations," Journal of Business Research, Elsevier, vol. 69(8), pages 2882-2889.
    13. G. Tomas M. Hult & Forrest V. Morgeson III & Udit Sharma & Claes Fornell, 2022. "Customer satisfaction and international business: A multidisciplinary review and avenues for research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1695-1733, October.
    14. Shahzad, Muhammad Faisal & Abdulai, Awudu, 2020. "Adaptation to extreme weather conditions and farm performance in rural Pakistan," Agricultural Systems, Elsevier, vol. 180(C).
    15. Mandler, Timo & Sezen, Burcu & Chen, Jieke & Özsomer, Ayşegül, 2021. "Performance consequences of marketing standardization/adaptation: A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 125(C), pages 416-435.
    16. Sari, Emre & Moilanen, Mikko & Lindeboom, Maarten, 2023. "Role of grandparents in risky health behavior transmission: A study on smoking behavior in Norway," Social Science & Medicine, Elsevier, vol. 338(C).
    17. Markus Venzin & Vikas Kumar & Jens Kleine, 2008. "Internationalization of retail banks: A micro-level study of the multinationality-performance relationship," Management International Review, Springer, vol. 48(4), pages 463-485, April.
    18. Axel Dreher & Sarah Langlotz, 2020. "Aid and growth: New evidence using an excludable instrument," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 1162-1198, August.
    19. Geleilate, José-Mauricio G. & Magnusson, Peter & Parente, Ronaldo C. & Alvarado-Vargas, Marcelo J., 2016. "Home Country Institutional Effects on the Multinationality–Performance Relationship: A Comparison Between Emerging and Developed Market Multinationals," Journal of International Management, Elsevier, vol. 22(4), pages 380-402.
    20. Oliver J. Rutz & George F. Watson, 2019. "Endogeneity and marketing strategy research: an overview," Journal of the Academy of Marketing Science, Springer, vol. 47(3), pages 479-498, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jouret:v:95:y:2019:i:3:p:30-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.