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Performance implications of store format diversification for international retailers
Journal article

Performance implications of store format diversification for international retailers

Boryana V. Dimitrova, Brent Smith and Saejoon Kim
Journal of marketing channels, v 25(3), pp 117-136
03 Jul 2018

Abstract

Cultural distance international retailers internationalization speed political distance retailer performance store format diversification
International retailers face formidable tasks in trying to replicate, or improve upon, their home country success abroad. Their market-seeking efforts sometimes require strategic diversifications of their store format portfolios capable of serving customers in different host countries. In this study, we examine whether the degree of store format diversification helps improve the performance of international retailers. We also assess the possible moderating effects of three factors-internationalization speed, political distance, and cultural distance-on this relationship. Utilizing 2001-2015 panel data for 19 retailers originating from several home countries and operating in multiple host countries, we employ a fixed effects model to examine the hypothesized relationships. Our results show that the performance of international retailers is influenced negatively by store format diversification. This relationship is moderated by internationalization speed and political distance, but not by cultural distance.

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#17 Partnerships for the Goals
#9 Industry, Innovation and Infrastructure

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