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Determinants of International Retail Involvement: The Case of Large U.S. Retail Chains

Although retail operations traditionally have been considered poor candidates for international expansion, firms in mature retail markets are increasingly turning to international markets as a means for strategic growth. In this study, the authors examine how internal determinants affect the international ventures of large U.S. retail chains, comparing internal characteristics of international and domestic firms. The authors use the behavioral internationalization paradigm to develop a model of international retail involvement, which serves as a conceptual framework for the study. Through a logistic regression model, the results support the relevance of six of eight explanatory determinants of international retail involvement. The findings highlight the powerful influence of the strategic management characteristics, competitive advantages related to retail concept and logistics, and a retailer's size. In contrast, neither previous experience in direct foreign sourcing nor competitive advantages related to retail merchandise were significant in this model.