Anne Marie Doherty

Power and control in international retail franchising – Evidence from theory and practice

Franchising is fast becoming one of the most popular entry mode strategies for international retail companies when moving into international markets. Academic research, however, has only recently begun to examine international franchising within the context of retailer internationalisation. A major gap in the literature is the nature of the international retail franchise relationship and, in particular, the mechanisms used to control and co‐ordinate the international franchise network. This paper reports the findings from an in‐depth, ethnographic study of the internationalisation activity of one retail franchise company and examines the extent to which the marketing channels and agency theory literatures can, in practice, explain power and control in international retail franchising.

The internationalization of retailing : factors influencing the choice of franchising as a market entry strategy

Purpose – The purpose of this paper is to examine the factors that motivate international retail companies to choose franchising as a method for entering international markets.Design/methodology/approach – Employs a qualitative methodology and a multiple case study design. Six major UK‐based international fashion retailers form the empirical basis for the work.Findings – Finds the motivating influences to be a combination of both organisational and environmental factors. International retailing experience, availability of financial resources, presence of a franchisable retail brand, company restructuring and influence of key managers emerge as the organisational factors while environmental influences are revealed as opportunistic approaches, local market complexities, domestic competitive pressures and availability of potential franchise partners.Practical implications – Provides a useful source of information for those retail firms considering internationalization via the franchising method. Research is ...

Factors Influencing International Retailers' Market Entry Mode Strategy: Qualitative Evidence from the UK Fashion Sector

Research on the internationalisation of retail firms has focused on many diverse themes such as the motivations for internationalisation, individual company experiences and the direction and extent of international retail activity. One particular aspect of the retailer internationalisation process that has remained relatively under researched is entry mode choice. Furthermore, while research on fashion retailing is increasing, the internationalisation of the sector has been largely neglected in the literature. The aim of the current work is to provide an initial attempt at redressing this research gap. The paper reports findings from an in-depth study into the entry mode choice decision process of seven major UK international fashion retailers. It is found that entry mode strategy emerges over time as a result of a combination of historical, experiential, financial, opportunistic, strategic and company-specific factors.

Internationalization motives and facilitating factors: qualitative evidence from smaller specialist retailers

Drawing on case study evidence, this article explores the reasons small specialist retailers internationalize and the facilitating factors that help them overcome the obstacles to internationalization. The authors employ qualitative research techniques and, to build theory from an unexplored area of research, adopt a multiple-case approach. The findings suggest that though a strong company brand identity is the most significant motive for expansion, other internal and external factors facilitate the international decision-making process.

Power and control in international retail franchising

Purpose – As international retailers continue to employ franchising as a major method of market entry, the control of these international retail franchise networks becomes of significant importance. The aim of this paper is to examine the methods by which UK‐based international fashion franchisors control franchisees and their international franchise businesses.Design/methodology/approach – The paper employs a qualitative methodology and a multiple case design. Six UK‐based fashion retailers with international franchise operations form the empirical basis of the study.Findings – The franchise contract, support mechanisms, franchise partner selection, the franchise relationship and the use of master/area franchising were found to be the major methods by which international retail franchisors exert control over their franchise networks. While coercive and non‐coercive sources of power were identified in the form of the franchise contract and support mechanisms, the paper also identifies sources of relations...

International retail franchising: an agency theory perspective

International retailers are increasingly using franchising as a means of entering foreign markets. However, international retail franchising lacks a conceptual basis from which an explanation of the major elements of this activity can be generated. Agency theory and its major premises of information asymmetry, monitoring costs, moral hazard and opportunism, are introduced in an attempt to provide an initial effort at bridging this conceptual gap. The paper reviews international retailing and franchise research before explaining agency theory. A discussion follows on how agency theory can explain major elements of international franchise activity of retail firms such as the international retail franchise process and the operationalisation of the international retail franchise system.

Understanding the International Retail Divestment Process

This paper focuses on the international retail divestment process. Using a qualitative methodological approach the paper presents findings that facilitate a stage‐by‐stage consideration of the process. Interviews with current and ex‐employees, all senior managers, provide insights into the most important considerations, decisions and outcomes at different stages in the divestment process. By using this approach it has been possible to build up a complete picture of the process and has avoided an emphasis being placed on only one stage of divestment activity.

International retail research: focus, methodology and conceptual development

Purpose – The purpose of this paper is to consider the development of research in international retailing over the last 20 years and propose a future research agenda within a conceptual framework.Design/methodology/approach – The paper reviews the development of the retail internationalisation literature.Findings – Explains how different research topics have emerged over the years and how researchers have responded methodologically to the different research challenges encountered.Research limitations/implications – The paper emphasises the importance of journals such as the International Journal of Retail & Distribution Management in the development of the international retailing research domain and discusses the challenge researchers currently have in developing the subject area.Practical implications – Explores current understanding of the internationalisation process and through the consideration of different activities and processes within the international retail firm proposes a future research agend...

Consumer demographics, ethnocentrism, cultural values, and acculturation to the global consumer culture: A retail perspective

Abstract Globalisation creates threats and opportunities for retailers in both international and domestic markets. Recently, researchers established a framework for examining the development of supra national marketing segments to explain acculturation to the global consumer culture (AGCC) (Cleveland & Laroche, 2007). The research presented here extends their work by examining demographic and cultural drivers of AGCC and the impacts of global acculturation on ethnocentrism towards international retailers among a cross-section of US consumers (N = 492). Findings suggest that, to varying degrees, demographics and individualism impact four of the dimensions of AGCC, while the dimensions of AGCC impact ethnocentrism for food and fashion retailers. Cosmopolitanism and social interaction consistently reduce ethnocentrism towards retailers among the sample data.

Brand context and control: the role of the flagship store in B&B Italia

Purpose – The paper seeks to explore the phenomenon of the flagship store from the perspective of brand management and brand context within the luxury furniture sector.Design/methodology/approach – Adopts a case‐study approach, focusing upon Milan‐based furniture manufacturer and retailer B&B Italia and comprises interview derived data and archive material.Findings – Recognises the difficulty associated with manufacturing/product‐orientated organisations to establish a brand context. It identifies that the forward integration of luxury manufacturing companies into retailing, through the establishment of flagship stores provides such companies with an opportunity to provide a context for their brand and exercise a level of control over its manifestation that is difficult to achieve through other distribution channels.Research limitations/implications – Highlights the value of forward integration as a means of establishing brand context and experience.Originality/value – Demonstrates the wider value of the ...