Internationalization of Japanese Department Stores

Japanese department stores have gained significant market‐share in several Pacific Rim countries. In this paper, factors related to internationalization are discussed. Dunning's eclectic approach is considered as a framework for explaining internationalization. Profits, number of employees, and dollars spent for research and development are independent variables used to predict internationalization. Japanese department stores with international offices versus no international offices were correctly classified 83% of the time. Those retailers with international offices had greater profit, more employees, and more R&D funds than those without international offices. A two by two matrix focusing on growth and store format is presented to explain Japanese retailers' international expansion. Propositions for future research are presented.