Store Format Diversification, Customer Orientation and the Performance of Foreign Retailers
Foreign retailers contend with unrelenting challenges to discover and resolve issues affecting their performance in different host country markets. These retailers bear some wealth of international experience and also some liabil-ity of foreignness. Accordingly, managers of foreign retailers must en...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Asociación de Directivos Superiores de Administración, Negocios o Empresariales de Chile A.G. (ASFAE)
2021-07-01
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| Series: | Multidisciplinary Business Review |
| Subjects: | |
| Online Access: | https://journalmbr.net/index.php/mbr/article/view/1201 |
| _version_ | 1818908970959503360 |
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| author | Boryana V. Dimitrova Saejoon Kim Brent Smith Junhee Kim |
| author_facet | Boryana V. Dimitrova Saejoon Kim Brent Smith Junhee Kim |
| author_sort | Boryana V. Dimitrova |
| collection | DOAJ |
| description | Foreign retailers contend with unrelenting challenges to discover and resolve issues affecting their performance in different host country markets. These retailers bear some wealth of international experience and also some liabil-ity of foreignness. Accordingly, managers of foreign retailers must enact strategic decisions that will position their businesses in order to be competitive and profitable. In this study, the authors examine two generally overlooked fac-tors —degree of store format diversification and customer orientation— relating to improved foreign retailer per-formance. The authors also investigate the potential moderating effects of three host country characteristics —retail modernization, collectivism, and uncertainty avoidance— on this relationship. Based on the 2001-2015 panel data for 24 international retailers, results for main effects indicate that foreign retailer performance is influenced nega-tively by store format diversification and positively by customer orientation. These effects are moderated by host country retail modernization, collectivism, and uncertainty avoidance. In particular, host country retail modernization reverses, from negative to positive, the influence of store format diversification on foreign retailer performance. Fur-thermore, both collectivism and uncertainty avoidance strengthen the positive influence of customer orientation on foreign retailer performance. Finally, uncertainty avoidance strengthens the negative influence of store format diver-sification on foreign retailer performance. |
| first_indexed | 2024-12-19T22:19:29Z |
| format | Article |
| id | doaj.art-0892c2144aac40878150bbbf8dd936b1 |
| institution | Directory Open Access Journal |
| issn | 0718-400X 0718-3992 |
| language | English |
| last_indexed | 2024-12-19T22:19:29Z |
| publishDate | 2021-07-01 |
| publisher | Asociación de Directivos Superiores de Administración, Negocios o Empresariales de Chile A.G. (ASFAE) |
| record_format | Article |
| series | Multidisciplinary Business Review |
| spelling | doaj.art-0892c2144aac40878150bbbf8dd936b12022-12-21T20:03:41ZengAsociación de Directivos Superiores de Administración, Negocios o Empresariales de Chile A.G. (ASFAE)Multidisciplinary Business Review0718-400X0718-39922021-07-01Store Format Diversification, Customer Orientation and the Performance of Foreign RetailersBoryana V. Dimitrova0Saejoon Kim1Brent Smith2Junhee Kim3LeBow College of Business. Drexel University Philadelphiaollege of Business Administration. California State University, Stanislaus One University Circle. Turlock. United States of AmericaDepartment of Marketing Communication. Emerson College. Boston, United States of AmericaCollege of Business Administration. California State University, Stanislaus One University Circle. Turlock. United States of AmericaForeign retailers contend with unrelenting challenges to discover and resolve issues affecting their performance in different host country markets. These retailers bear some wealth of international experience and also some liabil-ity of foreignness. Accordingly, managers of foreign retailers must enact strategic decisions that will position their businesses in order to be competitive and profitable. In this study, the authors examine two generally overlooked fac-tors —degree of store format diversification and customer orientation— relating to improved foreign retailer per-formance. The authors also investigate the potential moderating effects of three host country characteristics —retail modernization, collectivism, and uncertainty avoidance— on this relationship. Based on the 2001-2015 panel data for 24 international retailers, results for main effects indicate that foreign retailer performance is influenced nega-tively by store format diversification and positively by customer orientation. These effects are moderated by host country retail modernization, collectivism, and uncertainty avoidance. In particular, host country retail modernization reverses, from negative to positive, the influence of store format diversification on foreign retailer performance. Fur-thermore, both collectivism and uncertainty avoidance strengthen the positive influence of customer orientation on foreign retailer performance. Finally, uncertainty avoidance strengthens the negative influence of store format diver-sification on foreign retailer performance.https://journalmbr.net/index.php/mbr/article/view/1201Foreign retailersstore format diversificationcustomer orientationretail modernizationcollectivismuncertainty avoidance |
| spellingShingle | Boryana V. Dimitrova Saejoon Kim Brent Smith Junhee Kim Store Format Diversification, Customer Orientation and the Performance of Foreign Retailers Multidisciplinary Business Review Foreign retailers store format diversification customer orientation retail modernization collectivism uncertainty avoidance |
| title | Store Format Diversification, Customer Orientation and the Performance of Foreign Retailers |
| title_full | Store Format Diversification, Customer Orientation and the Performance of Foreign Retailers |
| title_fullStr | Store Format Diversification, Customer Orientation and the Performance of Foreign Retailers |
| title_full_unstemmed | Store Format Diversification, Customer Orientation and the Performance of Foreign Retailers |
| title_short | Store Format Diversification, Customer Orientation and the Performance of Foreign Retailers |
| title_sort | store format diversification customer orientation and the performance of foreign retailers |
| topic | Foreign retailers store format diversification customer orientation retail modernization collectivism uncertainty avoidance |
| url | https://journalmbr.net/index.php/mbr/article/view/1201 |
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