Karise Hutchinson, Nicholas Alexander, Barry Quinn, and Anne Marie Doherty
Executive Summary
Research into retail internationalization has suggested that retailers that internationalize at an early stage in their development are capable of becoming some of the most dynamic and globally successful retailers in international markets as a result of their strong internationally relevant brands. However, little research has examined specifically the experience of small specialist retailers at an early stage in their international expansion. Hutchinson and colleagues consider the motives and facilitating factors that initiate and support the internationalization of smaller specialist retailers.
The literature on small and medium-sized enterprises has developed a body of knowledge that focuses on the key drivers for small firm expansion in the manufacturing sector. However, whereas previous research has been predominantly manufacturing based, this article contributes evidence of activity in the service sector by considering smaller specialist retailers.
Using a multiple-case approach, this research uses qualitative research techniques to build theory in an unexplored area. Hutchinson and colleagues consider nine companies; they use interviews with senior personnel responsible for the international decision-making process and company documentation, such as company histories, press releases, advertising and marketing material, and product market strategies, to build an understanding of the internationalization process and the decision-making process.
This research shows that the key motive behind internationalization is brand identity and the associated connotations of luxury product image, market appeal, original lifestyle concept, niche market opportunities, and global relevance. Such factors may also be considered differential advantages and key promoters of international activity in both the initial and the subsequent phases of expansion. Conceptually, this supports the contention that smaller specialist retailers adopt a proactive response to international market opportunities, and the framework provided in this study provides a more detailed understanding of that process.
Hutchinson and colleagues find that, in isolation, the motives behind internationalization are not sufficient for successful foreign market expansion and are dependent on several facilitating factors that provided these firms with the necessary resources to make internationalization a strategic reality. In particular, the findings emphasize the importance of the role of the entrepreneur/founder and the role of personal networking in decision making.
Biography
Karise Hutchinson is a researcher and lecturer in the School of Business, Retail and Financial Services at the University of Ulster in Northern Ireland. She received her PhD from the University of Ulster in 2006. Her areas of expertise include international retail marketing, small and medium-sized firms’ foreign market expansion, and luxury branding. Her consultancy experience to date includes working with companies in relation to branding and international marketing issues. Her current research agenda is focused on barriers to retailer internationalization, a research project working with the government body U.K. Trade and Investment (funded by the British Academy). In addition to publishing in Journal of International Marketing, she has recently published in Journal of Marketing Management, International Marketing Review, and Journal of Small Business and Enterprise Development.
Nicholas Alexander is Professor of International Marketing at the University of Wales, Aberystwyth. He received his PhD from the University of Ulster. His areas of expertise include international retail marketing and financial services marketing. His consulting experience for government and industry is primarily in international retail marketing and strategy. In addition to Journal of International Marketing, he has recently published in European Journal of Marketing, Journal of Marketing Management, and International Marketing Review. His current research is focused on international retail marketing and brand authenticity.
Barry Quinn is Senior Lecturer in International Retailing at the University of Ulster in Northern Ireland. He received his PhD from the University of Ulster in 1997. His areas of expertise include internationalization and retail marketing. His consulting experience for government and industry is primarily in international retail marketing. He has recently published in International Marketing Review, European Journal of Marketing, and Journal of Small Business and Enterprise Development. His current research is focused on various aspects of international retail marketing.
Anne Marie Doherty is Professor of Marketing at the University of Glamorgan. She holds a PhD in Marketing from the University of Strathclyde, Scotland. Her areas of research expertise are international retail marketing, fashion marketing, and market entry mode strategy, particularly franchising. In addition to Journal of International Marketing, she has published in European Journal of Marketing, Journal of Marketing Management, International Marketing Review, and the International Journal of Service Industry Management. She is currently involved in a range of projects on international retail marketing and luxury fashion branding.
Journal of International Marketing, Vol. 15, No. 3, September 2007
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