Retail companies’ internationalization behavior and the 2008 crisis

Abstract

Purpose – The purpose of this paper is to challenge earlier recommendations and explanations regarding companies’ behaviour after an economic shock and analyses worldwide retail companies’ internationalization processes before and after the 2008 crisis. Design/methodology/approach – Drawing on information published between 2003 and 2012, the authors focus on the 2008 crisis and analyse 1,500 different internationalization moves by 109 companies from 26 countries. Findings – The analyses confirm that the pace of retail internationalization increased after the 2008 crisis, that these companies had mainly moved into countries with newly developing economies, and that the entry modes ranged from high-cost entry modes and low-cost strategies. Originality/value – This paper provides an initial indication of retailers’ actual internationalization behaviour in the period considered. Such material has not been available previously as international retailing research has primarily focused on theoretical assumptions. By focusing on the current financial crisis, the authors highlight the problem that researchers investigating various company behaviours face when comparing these to the theoretical expectations. By using a worldwide, multisectorial, and longitudinal retailing sample to illustrate the internationalization process, the authors not only generalize companies’ internationalization behaviour, but also challenge earlier recommendations and explanations regarding their behaviour after an economic shock.