A Retailer’s International Involvement: Conceptualization of Its Determinants

The goal of this paper is to apply existing theoretical and empirical knowledge in the field of international business to the study of internationalization of firms in the retail industry. A conceptual model of international retail involvement (IRI) is proposed. The model postulates that five firm and industry specific factors are the major antecedents of IRI: retailer’s knowledge and experience, retailer’s differential advantage, perceived attractiveness of international retail expansion and domestic market situation. Furthermore, the model suggests that two dimensional characteristics of a retail firm exert a moderating effect in the relationship between the five constructs and the IRI: the retailer’s size and its operating format/sector. Recommendations and conceptualizations for future empirical research are also presented.