Internationalization and Performance of Retail Firms: A Bayesian Dynamic Model.
Sep 21, 2012
Articles in journals
Barros, C., Assaf, A., Josiassen, A.
This paper offers a fresh approach to the literature examing the internationalisation on retail firm performamce. We draw on organizationlearning theory to test the moderating effects of four variables which are hypothesized to affect the performance of internationalising retailers through facilitating the transfer of learning in international markets. The study innovates by introducing a new performance metric and an advance methodology to account for the dynamic aspects of organizational learning. Testing our hypothesis in a sample of international retailers we found that the relationship between internationalisation and performance is U-shaped and moderated by merger and acquisitions, age at entry to international markets and country of origin. This finding expands prior research by providing more comprehensive evidence regarding the conditions under which internatiolization leads to improved performance. the authors conclude outlining the implications for practice.