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International Journal of Retail & Distribution Management
International retail research: focus, methodology and conceptual development
Nicholas Alexander Anne Marie Doherty
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Nicholas Alexander Anne Marie Doherty, (2010),"International retail research: focus, methodology and
conceptual development", International Journal of Retail & Distribution Management, Vol. 38 Iss 11/12 pp.
928 - 942
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Christopher M. Moore, Anne Marie Doherty, Stephen A. Doyle, (2010),"Flagship stores as a market entry
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Nicholas Alexander, Anne Marie Doherty, Jason M. Carpenter, Marguerite Moore, (2010),"Consumer
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IJRDM
38,11/12
International retail research:
focus, methodology and
conceptual development
928
Nicholas Alexander
Department of Marketing, Lancaster University Management School,
Lancaster University, Lancaster, UK, and
Anne Marie Doherty
Glamorgan Business School, University of Glamorgan, Treforest, UK
Abstract
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Purpose – The purpose of this paper is to consider the development of research in international
retailing over the last 20 years and propose a future research agenda within a conceptual framework.
Design/methodology/approach – The paper reviews the development of the retail
internationalisation literature.
Findings – Explains how different research topics have emerged over the years and how researchers
have responded methodologically to the different research challenges encountered.
Research limitations/implications – The paper emphasises the importance of journals such as
the International Journal of Retail & Distribution Management in the development of the international
retailing research domain and discusses the challenge researchers currently have in developing the
subject area.
Practical implications – Explores current understanding of the internationalisation process and
through the consideration of different activities and processes within the international retail firm
proposes a future research agenda.
Originality/value – The paper addresses the achievements of researchers in the area of
international retailing over the last 20 years and, within a conceptual framework, explores those
lacunae in the knowledge base that require further research.
Keywords Retail management, Marketing, Research work, Retailing, Serials
Paper type Literature review
International Journal of Retail &
Distribution Management
Vol. 38 No. 11/12, 2010
pp. 928-942
q Emerald Group Publishing Limited
0959-0552
DOI 10.1108/09590551011085993
Introduction
By the end of the 1980s the number of publications on the subject of international
retailing were few and, in terms of their publication dates, far between. Recently,
20 years later, the area is rich in articles that address the subject of international
retailing. These articles provide three overall contributions. First, they address different
aspects of international activity: for example, the motivations behind the process of
retail internationalisation, market selection, market entry methods and the divestment
process. Second, they provide conceptualisations that recognise the broader intellectual
agenda surrounding the internationalisation of business while at the same time
recognising the uniqueness of the retail experience and the value that experience brings
to understanding general international business processes. Third, they address research
questions from the perspective of different research methodologies.
That contribution has been made possible through the outlets, journals especially,
that have provided academic research with a voice. The International Journal of Retail &
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Distribution Management under the editorship of Professor John Fernie has made a
notable contribution to providing that opportunity. Twenty years ago a student eager to
access papers on international retailing would have had neither the search engines nor
the on-line systems available today; however, a student in 2010 carrying out a search for
papers specifically focused on “international” perspectives of retailing, and merely
asking for those with international in the title, would find, using those restricted criteria,
around 20 articles in the International Journal of Retail & Distribution Management.
The same search, using the same criteria, for the Journal of Retailing would reveal one.
In that rather raw fact, resides two fundamental realities of research in international
retailing. First, international retailing research today would not have developed in the
way, and at the speed, that it has without the editorial policies of journals such as the
International Journal of Retail & Distribution Management and the support of that
journal in particular. Second, in the next 20 years, researchers face the task of
recognising that research and exporting the wealth of understanding generated by it
into the wider literature.
Development of the literature
In the late 1980s a new wave of international retail activity had begun to build. The
consumer society that had emerged in the 1980s generated retailers increasingly capable
of addressing the challenge of international activity either because of their increasing
market orientation (Piercy and Alexander, 1988), their operational size (Treadgold, 1988)
or their brand strength (Alexander, 1989, 1990a, b; Williams, 1992a, b). This commercial
activity generated academic interest.
In the early stages of this research interest the emphasis was on the identification
of activity, the type of activity and the characteristics of the international retailer. The
work of Mitton (1987), Treadgold (1988) and Alexander (1989) in Retail & Distribution
Management, a precursor to the International Journal of Retail & Distribution
Management, and subsequently Hamill and Crosbie (1990) and Robinson and
Clarke-Hill (1990) in the International Journal of Retail & Distribution Management itself
are good examples of this research activity. Their work helped to map international
retailing activity, as did the work of Burt (1989), Hallsworth (1990) and Pellegrini (1991)
and others in other journals. This body of work began the process of bringing the much
earlier work of Hollander (1970) up to date.
This ushered in a period in which research in this area was consolidated and key
themes began to emerge and be defined: international distribution strategies (Fernie,
1992, 1995), motivational structures (Alexander, 1995), patterns of geographic
expansion (Burt, 1993; Davies and Fergusson, 1995), market positioning (McGoldrick,
1995). However, by the late 1990s, the emphasis had changed and attention was
increasingly drawn to the conceptualisation of the process and how international
retailing activity fitted within conceptualisations of international business generally or
challenged previous assumptions in the wider literature (Sternquist, 1997; Vida and
Fairhurst, 1998; Doherty, 1999; Alexander and Myers, 2000; Vida et al., 2000).
One outcome of this conceptualisation process was the bringing together of
international retail themes in larger volumes of work (Alexander, 1997; Sternquist, 1998),
and the recognition of a new agenda that established the need for more detailed
consideration of different aspects of the internationalisation process and management
activity. Consequently, the last ten years have seen an emphasis on operational aspects
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of international retailing such as market selection (Gripsrud and Benito, 2005;
Alexander et al., 2007; Myers and Alexander, 2007; Swoboda et al., 2007) and market entry
method (Doherty, 1999, 2000, 2009; Quinn, 1999; Gielens and Dekimpe, 2001; Doherty and
Alexander, 2004, 2006; Palmer and Owens, 2006; Huang and Sternquist, 2007; Park and
Sternquist, 2008). Likewise it has seen the consideration of the international retail process
including the process of divestment (Alexander and Quinn, 2002; Burt et al., 2002, 2003,
2004; Wrigley and Currah, 2003; Palmer, 2004; Alexander et al., 2005; Palmer and Quinn,
2007; Cairns et al., 2008; El-Amir and Burt, 2008). The International Journal of Retail &
Distribution Management has played an important role in the development of an
understanding of that process.
Likewise, in the last 15 years the type of retailer under detailed study has widened to
include a more balanced view of international activity. Earlier work tended to emphasise
the internationalisation of food retailers and the larger formats, but the late 1990s
witnessed the emergence of research on fashion retailers driven largely by the work of
Moore (1997, 1998). Fernie et al. (1997, 1998) continued in the same vein, focusing on the
internationalisation of the luxury brand, an area that evolved further with the
publication of work by Moore et al. (2000, 2004) and Moore and Birtwistle (2004, 2005).
This continues into the present with recent research focusing on the activities of
international fashion retailers such as Zara (Lopez and Fan, 2009), as well as research
which explores critical success factors (Wigley et al., 2005; Wigley and Moore, 2007),
expansion patterns (Waarts and van Everdingen, 2006) and entry method (Doherty,
2000, 2007, 2009; Moore et al., 2010). The International Journal of Retail & Distribution
Management has been central to this evolution.
Concurrent with this increasing focus on the fashion sector has been the continued
growth in research on the internationalisation of the large format retailers such as
Wal-Mart (Arnold and Fernie, 2000; da Rocha and Dib, 2002; Christopherson, 2007) and
Home Depot (Bianchi and Arnold, 2004). Smaller, niche retailers have also garnered
some attention (Foscht et al., 2006; Picoy-Coupey, 2006; Hutchinson et al., 2007). This
increasing breadth of activity has not, however, happened at the expense of the larger
food retailers, with economic geography still continuing to predominantly focus on this
sector (Aoyoma, 2007; Humphrey, 2007).
Methodologically, international retail research has become increasingly engaged with
qualitative methods in recent years. This is in contrast to earlier work that was more
reliant on observation (Treadgold, 1988), questionnaires (Alexander, 1990a, b; Williams,
1992a, b; Myers, 1995; Myers and Alexander, 1996, 1997), databases (Burt, 1993; Davies
and Fergusson, 1995) and case descriptions of individual firms based on secondary data
(Laulajainen, 1992; Moore, 1998). The late 1990s, and particularly the 2000s witnessed a
significant move to the use of more in-depth qualitative methods such as ethnography
(Quinn, 1998, 1999), in-depth interviews (Moore, 1997; Palmer and Quinn, 2005; Evans
et al., 2008a, b), the increasing use of the single qualitative case study (Palmer, 2005;
Palmer and Quinn, 2007; Cairns et al., 2008; Bianchi, 2009; Wigley and Chiang, 2009) and
multiple case studies (Bianchi and Ostale, 2006; Doherty and Alexander, 2004, 2006;
Moore et al., 2004; Hutchinson et al., 2006, 2007; Doherty, 2009). This move to more
in-depth methods of data collection and analysis is entirely characteristic of a domain
moving into a more mature stage of its development. The use of observation,
questionnaires and databases provided a sound basis for the research area from which
in-depth qualitative accounts of actual company activity could lead to more robust
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theory building. Indeed, the use of questionnaires and databases still complement the
developing qualitative methods agenda (Alexander et al., 2005; Maharajh and Heitmeyer,
2005). Nor is it to say that a reliance on secondary sources is now redundant, as the recent
edition of the Journal of Economic Geography (2007) on the subject of transnational retail,
supply networks and the global economy, attests. Ultimately, while these theoretical
contributions are welcome, insights based on primary qualitative data help research in
this area to get closer to the organisations themselves and provide a greater
understanding of how and why retail internationalisation actually happens.
International retailing research in 2010
Two recent reviews of the literature on international retailing have clearly identified the
current strength in international retailing research (Alexander and Doherty, 2009;
Swoboda et al., 2009). Alexander and Doherty’s (2009) review of research emphasises
conceptual or theoretical papers, patterns of international retailer activity, host market
characteristics, the motivations behind international activity, market selection, market
entry methods, supply chain management in international markets, marketing and brand
management and international retail divestment. Swoboda et al. (2009) emphasise “the
motives for going international”, “internationalisation strategies”, “market selection and
(past) entries”, “choices of market entry strategy”, “market operations (standardization
vs adaptation)”, “international performance” and “studies dealing with failures and
foreign divestments”. Likewise, in their edited book of reprinted past papers on retail
globalisation and the “transnational” company, Coe and Wrigley (2009) thematically
emphasise the emergence of transnational companies, emerging markets, host economies
and the impact of transnational retailers on those economies, transnational sourcing,
and the “process of market entry, expansion and exit by transnational retailers”.
Considering these three recent publications, journal literature review (Swoboda et al.,
2009), reader (Coe and Wrigley, 2009) and book (Alexander and Doherty, 2009), certain
themes emerge very strongly. Market selection and market entry, activities which
Swoboda et al. (2009) describe as “market-oriented decisions”, have clearly attracted
considerable attention and recognition over the last ten years. Likewise, research into
divestment activity has burgeoned. As Coe and Wrigley (2009) acknowledge in the
choice of papers covering divestment, it was not until the early years of the century
(Alexander and Quinn, 2002) that this stream of research began to emerge. Since then a
considerable amount of research on divestment in international retailing has appeared.
However, it is also clear that the motives and strategy debate has become somewhat
lost in the research agenda; while recent articles by Hutchinson et al. (2007) and Evans et al.
(2008a, b) have revisited and revitalised research in the area of motivations, strategy has
remain somewhat neglected. In some respects this might be considered surprising as
strategic questions were a significant feature of papers in this area in the early days of
research into international retail activity. Similarly, while Swoboda et al. (2009) highlight
the “standardisation vs adaptation” stream in the literature, their review again
emphasises the relative lack of interest that has been shown in the last five years
compared to the 1990s and even the early 2000s. One explanation for this is that these two
themes were very closely connected in the early literature on the subject and, although
they came to strongly influence thinking in the area, there was clearly a need to investigate
in more depth some of the observations that had emerged in early papers: hence the
emphasis on the areas of market selection, market entry and divestment decisions.
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Intriguingly the area of company performance has not emerged as strongly as might
have been expected. Although, Evans and Mavondo (2002) and Evans et al. (2008a, b)
consider performance, their research theme is underpinned by market selection decisions.
Elsewhere, case study work such as that by Wigley et al. (2005) has directly addressed the
performance question with respect to fashion companies. However, the question of
performance remains an underexplored one that might ably assist researchers in the
revitalisation of the now relatively quiescent strategy debate.
Of the three reviews noted above, Alexander and Doherty (2009) and Swoboda et al.
(2009) identify similar themes, Coe and Wrigley’s (2009) collection moves in a slightly
different direction. An economic geography perspective, dominated by the big box
formats, permeates Coe and Wrigley’s (2009) thematic structure and choice of published
articles. Likewise, just as economic geography has shown an interest in international
retailing in recent years, so business history has taken an increasing interest in
international retail development. Whysall’s (1997) consideration of the acquisition of the
British retailer Boots by US interests in the 1920s, Godley and Fletcher’s (2000)
consideration of inward investment in Britain during the late nineteenth and the
twentieth century and Harm’s (2008) exploration of the Americanisation of the German
distribution system are indicative of an increased interest in international retail activity
from an historical perspective.
This raises, yet again, the issue of how international retailing is to be understood.
The study of retailing generally and international retailing in particular has been
strongly influenced by economics, geography and marketing. In some senses
economics and geography underpinned research in this area, particularly in the UK,
until the arrival of a strong marketing influence at the end of the 1980s and beginning
of the 1990s. The development of international retailing research over the last 20 years
has therefore taken the research area strongly in the direction of marketing. Indeed,
it might be said that while retail specific journals such as the International Journal of
Retail & Distribution Management has nurtured the subject area of international
retailing, much of the most important work has increasingly appeared in marketing
specific journals, such as the International Marketing Review, the Journal of Marketing
Management, the European Journal of Marketing and the Journal of International
Marketing.
Ultimately, there is evidence of a shift toward disciplines such as geography, history
and marketing, as the intellectual influence of these subject areas exert a pressure to
define research being undertaken on international retailing. In many respects this could
prove to be a very beneficial outcome. A substantial literature, with all its research
foci and lacunae, now characterises international retailing research. There may be much
to be said in the literature’s assumptions, presumptions and contributions being
considered in relation to other intellectual indices. However, conversely there is also
much to be said for a continued strong dialogue that recognises the idiosyncrasies of the
internationalisation process in retailing (Dawson, 1994, 2007) and considers the activity
in its own right. However, if the latter is to be achieved the research area needs to return
to certain fundamental questions.
Back to basics
The last ten years have provided research that looked far more closely at the
components of international retailing activity. The way that retailers address aspects
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of the internationalisation process, such as market selection and market entry has been
explored in such a way as to provide a more rigorous understanding of the retail
internationalisation process. However, while the evidence of activity has been
considered and qualitative research has provided greater insights into the workings of
international retail organisations, there are still areas that have not been considered in
sufficient depth.
The coordination of functions within the retail organisation and an understanding of
the use or misuse of experience within the retail organisation, remain relatively
unexplored. Recently, research on divestment activity has drawn on managers’
experiences and their understanding of withdrawal from markets (Palmer, 2005; Bianchi
and Ostale, 2006; Cairns et al., 2008). Such research could be constructively used to
explore other aspects of retail international activity in greater detail. For example,
leadership, which Alexander and Myers (2000, p. 345) identified as a key “internal
facilitating competency” within organisations remains an under researched area;
although, it has recently been highlighted as a significant aspect of the divestment
process (Cairns et al., 2010).
Likewise, and in contrast to the need to understand the detail of international retail
management activities and the interrelationship thereof, there is also a need to revisit
broader strategic issues. Twenty years ago the strategic development of international
retailing activity dominated the literature. That was hardly surprising. Such an
approach was appropriate to the early stages of subject development. However, there is
now a need to better understand the strategic direction of leading international
operations. That is not to say that short speculative papers are called for, rather work
should focus on in-depth research which seeks to better understand strategic
developments within an organisation and institutional framework. The global,
multinational and transnational vocabulary of the later 1980s and early 1990s (Salmon
and Tordjman, 1989; Treadgold, 1991) has not been sufficiently challenged in the
literature despite researchers’ greater understanding of the internationalisation process.
This in itself raises the question of an integrated theoretical understanding of
international retailing. If Dawson’s (1994, p. 278) warning still holds good, that
internationalisation in retailing “is substantially different from the internationalization
process in manufacturing firms” then there is still substantial room for theory
development. However, there is a danger that theoretical development will only address
international retailing issues or again import concepts from the broader literature and
shoehorn them into the retail context.
However, in looking for a theoretical overview of international retail activity there
may also be the need for a willingness to address fundamental problems in studying the
companies that are brought together in studies of international activity. From the early
days of Treadgold’s (1988) matrix of international retailing activity and Salmon and
Tordjman’s (1989) identification of broad strategic options, there has been an obvious
tension in theory development created by the companies considered. As Alexander
(1997, p. 51) noted some time ago, Treadgold’s (1988) and Salmon and Tordjman’s (1989)
classification of activity could be deconstructed using Hollander’s (1970) classification
system. That is, the type of retail operation considered will conform to broad strategic
options, market selection patterns and market entry decisions. In other words, the study
of luxury or fashion retailers will highlight patterns of international development that
are not replicated by large unit retailers dealing in food and non-food items. This returns
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to the questions raised by Alexander and Myers (2000) and revisited most recently by
Evans et al. (2008a, b), regarding the drivers of change. In the case of luxury fashion
operations, concept or brand is a strong driver of international development (Moore et al.,
2004). In the case of large unit food retailers the technology or skills base is paramount
(Wrigley, 2000).
In terms of the basic unit of analysis therefore, the number and type of international
retailer has increased dramatically over the last 20 years, yet we do not have a robust
classification system by which to categorize these companies. It would seem that
economic geographers tend to focus on the larger, food sector based transnational
corporation (Wrigley and Lowe, 2007), whereas retail marketing scholars tend to explore
the full range of international retail organisations, across the range of sectors, formats
and size. When Treadgold (1988) produced his typology of transnational retailers, he
lists 43 companies which, while specifically not claiming to be exhaustive includes “all of
the principal players in the international arena together with a number of companies
representative of particular approaches to developing an international presence”
(Treadgold, 1988, p. 8). Two decades later, a report by CB Richard Ellis (2009) charts the
activity of 260 international retail firms. It may well be the conclusion that international
retailing is now so complex that a classification system should not attempt to move
beyond core competencies, that is, merchandise base and format relationship (Alexander
and Doherty, 2009, p. 104).
International retailing: a research agenda for the future
Figure 1 seeks to bring together a conceptualisation of the activities of the international
retail firm, the research agenda already addressed and the research agenda implied for
the future. Within the wider competitive market environment the figure suggests three
core areas of research activity: corporate domain, corporate orientation and
market-based activities. Here there are two main determinants of the corporate
orientation: environmental and corporate characteristics. Likewise, there are two main
determinants of market-based activity: market activity management and market
portfolio management. Each of these four determinants has two subsidiary factors that
have received research attention and/or require further attention.
Competitive market environment
Corporate domain
Cross functionality
Corporate orientation
Figure 1.
International retail
structure: operational and
research environment
Market based activity
Environmental
characteristics
Corporate
characteristics
Market activity
management
Market portfolio
management
Experience
Cultural
Entry method
Market selection
Exposure
Operational
Market
proposition
Market
divestment
Corporate performance
Market performance
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In recent years, those factors that constitute market based activity have received
considerable detailed research attention. As noted above market selection (for example,
Gripsrud and Benito, 2005; Alexander et al., 2007) and divestment (Burt et al., 2003;
Cairns et al., 2008) have received increased attention in recent years. Likewise factors
that constitute market activity management, entry method (Doherty, 1999, 2000; Palmer
and Owens, 2006) and the market proposition (Burt and Carralero-Encinas, 2000; Wigley
and Moore, 2007; Wigley and Chiang, 2009; Alexander et al., 2010) have attracted
increased attention over the last ten years.
In contrast, corporate orientation has attracted far less attention in recent years.
As far as corporate characteristics are concerned, operational characteristics have been
an underlying factor in international retail thinking since the late 1980s. Here lies
the “standardisation vs adaptation” (Swoboda et al., 2009) debate. However, as
Swoboda et al.’s (2009) observations of the literature suggest, this issue has been
somewhat moribund for the last five years. Likewise an understanding of the cultural
characteristics of international retail organisations has not yet attracted sufficient
research attention. However, it is clear that this area is receiving some attention, for
example Christopherson’s (2007, p. 451) research on “Wal-Mart’s failure in Germany”
and Bianchi and Arnold’s (2004) research on Home Depot in Chile provide insights into
corporate attitudes and assumptions. Although this research has focussed on
divestment issues, which again takes the literature back to market-based activity
and portfolio management, it nevertheless provides a much needed window on the
importance of corporate characteristics within the internationalisation process. As
Alexander and Myers (2000) noted ten years ago, with respect to their market and
operational matrix, understanding the corporation on a ethnocentric-geocentric
continuum is fundamental to understanding how the corporation responds to and is
influenced by the markets in which international retailers operate.
The environmental factors affecting corporate orientation, experience and exposure,
are associated with the international learning process. That is, how organisations
modify their operations in light of experience. Again, this has been noted with respect to
retailers’ response to international experience and the modification of their entry method
strategy (Quinn and Alexander, 2002). Palmer’s work (2005) explicitly addresses the role
of learning in the context of Tesco’s international retail experiences; earlier work (Palmer
and Quinn, 2005) having provided an exploratory framework for analyzing international
retail learning. The relationship between markets and corporate orientation was
recognised by Wrigley (2000) in his work on transnational retailers and international
markets; this has been recently revisited in Wrigley and Lowe (2007). This relationship
between the market and organisation is explored in Coe and Wrigley (2007) and clearly
emphasises within an economic geography framework the environmental context in
which organisations appear to learn. There is clearly the opportunity for further work in
this area.
As noted above, research which contributes to an understanding of one determinant
is often linked to another. This is inevitable. Corporate orientation, through its affects
within the corporate domain, influences market activity management (entry method and
market proposition) and market portfolio management (market selection, divestment).
In turn, market performance and corporate performance outcomes of both corporate
orientation and market-based activity define the ability of the firm to operate and
respond within the competitive market environment. The key to understanding these
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processes lies with an understanding of cross functionality within the corporate domain.
From that understanding will be derived a better understanding of the broader strategic
agenda, which is where we started 20 years ago.
Conclusion
As a result of 20 years of sustained research on international retailing various
conclusions may be drawn. First, international retailing is reasonably well understood.
This is a very different situation from 20 years ago. Second, as an area of investigation
in its own right, there is a body of work that describes and analyses the process. The
evolution of this literature, described above, now provides a sound platform for further
development and refinement. Third, this work has contributed to a wider understanding
of the internationalisation process and it is increasingly doing so in a wider context. As
an important component of the service sector, retailing contributes a wider
understanding of the broader internationalisation process. However, the contribution
international retailing studies has to make to the broader internationalisation and
globalisation agenda has not been fully realised. Bringing the extensive work in this
field, which the International Journal of Retail & Distribution Management under the
editorship of Professor John Fernie has been instrumental in supporting, to a wider
audience so that the fundamental value of this extensive body of research is fully
understood is a fundamental challenge for this research over the next 20 years.
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About the authors
Nicholas Alexander is a Professor of Marketing at Lancaster University Management School.
He has published research in various areas including international retail marketing, relationship
marketing and financial services marketing. His consulting experience for government and
industry is primarily in international retail marketing and strategy. In addition to the International
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Journal of Retail & Distribution Management he has recently published in the Journal of
International Marketing, Journal of Services Marketing, Journal of Marketing Management,
European Journal of Marketing and the International Marketing Review. His current research is
focused on international retail marketing, branding and marketing history.
Anne Marie Doherty is a Professor of Marketing at the University of Glamorgan. Her areas of
research expertise are international retail marketing, market entry mode strategy, particularly
franchising, and fashion marketing. Professor Doherty’s work has been published in journals such
as the Journal of Business Research, Journal of International Marketing, European Journal of
Marketing, Journal of Marketing Management and the International Marketing Review. She is an
Associate Editor of the Journal of Marketing Management and was awarded the European Journal
of Marketing Outstanding Reviewer of the Year Award 2009. Her co-authored book, with
Professor Nicholas Alexander, on International Retailing is published by Oxford University Press.
Anne Marie Doherty is the corresponding author and can be contacted at: [email protected]
To purchase reprints of this article please e-mail: [email protected]
Or visit our web site for further details: www.emeraldinsight.com/reprints
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