Key Determinants of Retail Internationalization: Do Institutions Matter?
by Michael Czinkota, Svetla Marinova, A. Coskun Samli, and Zhizhong Jiang
International retailing, linked to the current state of globalization is on the move. Many retail establishments are internationalizing, although this process is not yet well understood. The institutional theory, as suggested by (Huang and Sternquist, 2007), may shed some important light on this critical topic.
The regulatory, normative, and cognitive social system of a firm’s institutional environment influences its institutional behavior and decisions (Meyer and Rowan, 1977; DiMaggio and Powell 1983; Scott 1995). Organizations make an effort to gain legitimacy through compliance with the social system of their institutional environment. They achieve this through isomorphism, which is a constraining process that makes units resemble each other when exposed to the same environmental conditions (DiMaggio and Powell, 1983).
This article explores the key determinants of retail internationalization and examines if institutions still matter. You may download the full chapter here: Key Determinants Article
Taken from Key Determinants of Retail Internationalization: Do Institutions Matter? (2015). In S. Marinova (Ed.), Institutional Impacts on Firm Internationalization. Palgrave MacMillan.