Internationalization and Performance of Retail Firms: A Bayesian Dynamic Model

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

Research output: Contribution to journalJournal article

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.
Original languageEnglish
JournalJournal of Retailing
Volume88
Issue number2
Pages (from-to)191-205
ISSN0022-4359
DOIs
Publication statusPublished - 2012

Keywords

  • Retail Firm Performance
  • Internationalization
  • Organizational Learning
  • Cost Efficiency
  • Bayesian Dynamic Modeling

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