SME retailer internationalisation:case study evidence from British

retailersKarise Hutchinson and Barry QuinnUniversity of Ulster, Coleraine, UK, and

Nicholas AlexanderUniversity of Wales, Aberystwyth, UK

Abstract

Purpose – The internationalisation of large multinational retailers is well documented and muchresearch attention has been given to their motives and strategies for expansion. Yet, no research in thisfield has specifically addressed the internationalisation of small- to medium-sized companies (SMEs)operating in the retail industry. The theoretical insights from the literature revealed important gaps inextant research, which relate to the barriers, stimulants, drivers, facilitators, process, and market entrystrategy of retail SME internationalisation.

Design/methodology/approach – This paper aims to fill these gaps. Since the intention of thisstudy was not to describe, but rather to build theory from an unexplored area of research, an in-depthcase approach was deemed most appropriate. Therefore, the paper presents the findings from anumber of case studies of SME retail internationalisation operating from the UK.

Findings – Key findings from this study not only confirm that smaller British retailers have both thepotential and capability to enter international markets successfully, but provides initial insights intohow they overcome the constraints of size and establish an international market strategy. The findingsfrom this study also offer insights into the SME sector of the retail industry in the UK in terms of theirexperience and adoption of government exporting programmes, and details the main implications formanagers of small international firms.

Originality/value – Although knowledge on SME retailer internationalisation, as it stands, is at avery early stage of development, this analysis of actual company activity in the UK retail industryprovides important insights into a neglected area of international retail study and should help todevelop the body of knowledge on SME internationalisation in general.

Keywords Small to medium-sized enterprises, Retailers, International business, United Kingdom

Paper type Research paper

IntroductionThere is now a developed body of knowledge on the internationalisation of retailoperations (Williams, 1992a; Sternquist, 1997; Vida, 2000; Goldman, 2001), however, itis interesting to note that the majority of studies have focused, either implicitly orexplicitly, on the activities of large retail organisations (Burt, 1986; Alexander, 1990;Williams, 1992b; Sparks, 1995; Arnold and Fernie, 2000). Despite this orientation in theliterature towards large retail operations, various authors have shown that, withrespect to the retail sector, size is by no means a significant impediment tointernationalisation (Hollander, 1970; Williams, 1991; Vida et al., 2000).

If retail small- to medium-sized company (SME) internationalisation has not beeninvalidated in the literature, the first question at the outset of this study inquires; can

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/0265-1335.htm

SME retailers

25

Received October 2003Revised August 2004

Accepted October 2004

International Marketing ReviewVol. 23 No. 1, 2006

pp. 25-53q Emerald Group Publishing Limited

0265-1335DOI 10.1108/02651330610646287

small- and medium-sized retailers expand their operations overseas? At the beginningof this study various examples of successful retail SME internationalisation werefound. European examples of retail SME internationalisation include Neals YardRemedies (UK), Godiva Chocolatier (Belgium), L’Occitane (France), Jil Sander(Germany), Bitte Kai Rand (Denmark), La Cicogna (Italy) and Lundia (Netherlands).It has been argued that these smaller retailers have greater potential in internationalmarkets than larger retailers weighed down by organisational preconceptions(Alexander and Quinn, 2001). The fact that dynamic smaller retailers (such as thoseaforementioned), with strong concepts, formats and products have shown themselvescapable of rapid international growth has been essentially ignored in the literature.Therefore, empirical research and academic review of small- and medium-sizedinternational retailers merits attention in the literature.

While the attention given to company size has been minimal in the body of literatureon international retailing there does, however, exist a strong body of knowledge onSME international expansion (Reuber and Fischer, 1997; Wolff and Pett, 2000).Evidence from exporting, marketing, and international business and entrepreneurshipliteratures demonstrates that small firms are, contrary to the expectations of manyscholars, active players in the international arena (Kohn, 1997). Within this literature ithas been shown that a successful exporter does not have to be a big exporter (Namiki,1988; Bonaccorsi, 1992; Reuber and Fischer, 1997; Coviello and McAuley, 1999) andthat SMEs have the potential to focus resources and efforts narrowly enough as theirexport-effective larger counterparts (Ali and Swiercz, 1991; Wolff and Pett, 2000). Themajority of empirical research in the field of SME internationalisation has focused onthe manufacturing industry with a few exceptional studies on the service sector(O’Farrell et al., 1998; Coviello et al., 1998; Masurel, 2001). This study, which exploresSME internationalisation within the retail industry, then further provides uniqueinsights into a previously unexplored sector in the field of international SME research.

If retail SMEs can expand internationally, and successfully, then what are the keydifferences between large and small retail firms in terms of the barriers and incentivesto international development? A review of both retail and SME literatures revealed avariety of definitions and characteristics that identify differences between SMEs andlarger firms. SMEs are differentiated from larger companies not only in terms ofphysical size (employees, sales turnover and stores), but also in terms of managerial,financial and operating characteristics. The barriers inhibiting internationaldevelopment of SMEs have been well documented (Leondiou, 1995; Morgan andKatsikeas, 1997) including limited financial, operational, logistical and learningresources. However, SMEs with international operations have overcome such barriersto expansion stimulated by competitive strategies of differentiation, and driven byentrepreneurial vision and networks.

This study also inquired to what extent government export assistance programsfacilitate the international development of retail SMEs based in the UK. Increasingly, itis being suggested that research and policy should be directed towards enablingestablished firms to overcome obstacles to development rather than focusing only onnew firms (North and Smallbone, 1996; Devins, 1999; DTI, 2001). Therefore, this paperseeks also to highlight the findings from retail SMEs in the UK relative to governmentassistance with recommendations and implications for both practitioners andpolicy-makers.

IMR23,1

26

Since the intention of this study was not to describe, but rather to build theory froman unexplored area of research, an in-depth case approach was deemed mostappropriate (Eisenhardt, 1989; Strauss and Corbin, 1994; Yin, 1994; Collis and Hussey,2003). Case research, in the field of SME internationalisation, is likewise contextreflective, and sensitive to the characteristics of the small- and medium-sized firms(Coviello et al., 1998). This paper focuses on the in-depth case evidence gathered fromnine established international retail SMEs in the UK.

Building upon international retail and SME empirical research, this exploratorystudy endeavours to provide an understanding of the international developmentexhibited by established small- and medium-sized retail firms. While it is recognisedthat the entrepreneur is a key variable in SME internationalisation, the focus of thisstudy is placed upon a holistic perspective of the firm, as opposed to a whollyentrepreneurial study. Therefore, intrinsically linked to the overall question of thisresearch are three key dimensions of the firm: resource capabilities stimulating anddriving international expansion; patterns of foreign development; and internationalmarket entry strategy. The paper begins with the theoretical insights and keyliterature themes surrounding the key sub-questions of this study, which areincorporated into a theoretical framework of retail SME international expansion.Following this, the research methodology is detailed and explained. Industry andcompany profiles and the findings from the case study research are presented in thefollowing section. The paper will then conclude with a discussion of the findings inrelation to the research questions with recommendations for policy-makers andresearchers.

Theoretical insightsSME definitionsThe difference between large firms and SMEs can be identified in terms of physicalsize and presence. Classification of SME size can include number of employees, numberof retail outlets, annual turnover, and a combination of employee and turnovermeasures (Kaynak et al., 1987; Smith and Sparks, 1997; Masurel, 2001). However,empirical studies across industries found sales turnover as the optimal indicator ofdistinguishing between smaller and larger international firms (Cavusgil, 1976, 1984;Reid, 1982; Ali and Swiercz, 1991; Beamish et al., 1993). This study has followed theguidelines of the European Commission (2000) and defined retail SME according tomaximum sales turnover of £24 million pounds sterling.

Resource characteristicsSmall- and medium-sized firms differ from large firms also in terms of managerial,financial and operating resources. There are two main theoretical perspectives on firmresources: resource-based view (RBV) and dynamic capabilities. At the heart of theRBV are those physical, human and organisational assets that can be used toimplement value-creating strategies (Barney, 1986; Wernerfelt, 1995). Dynamiccapabilities, on the other hand, are the antecedent organisational and strategic routinesby which managers alter their resource base to achieve congruence with the changingbusiness environment (Teece et al., 1997). It has been found that resource capabilities(static or dynamic, positive or negative) influence the propensity, method and mode offoreign market entry (Morgan and Katsikeas, 1997).

SME retailers

27

Internationalisation involves a high degree of risk and SMEs have more limitedresources to cope with the downside of foreign expansion (Buckley, 1989).Therefore, the obstacles impeding international development for SMEs can besummarised as strategic, operational, informational and process-based restrictions(Morgan and Katsikeas, 1997). As a result of weak financing and the subsequentneed for quick return on investment, SMEs generally have a limited range of entrymodes to choose from and a narrower operational base from which internationalactivities can be undertaken (Papadopoulos, 1987). Intensified by limited marketknowledge and lack of interaction with key parties, often owners of small firmshave no inclination, expertise or awareness to grow (O’Farrell and Hitchens, 1988)and consequently to pursue potential opportunities for expansion overseas.

However, the existence of export stimuli can allow SMEs to overcome such barriers tointernational expansion (Leondiou, 1995). International stimuli are those motivatingfactors which over-ride these obstacles and, in the literature, several key themes haveemerged as important stimuli, drivers and facilitators of foreign expansion: internationalstrategy, entrepreneurial vision/experience, firm networks and external assistance.

International strategyMore often, SMEs are concentrated in sectors or markets that allow them to capitaliseupon their strengths in international markets (Papadopoulos, 1987; Merrilees andTiessen, 1999). According to Barney (2002) firms with resources that are valuable,inimitable, rare and non-substitutable have a competitive advantage over theircompetitors both domestically and internationally. Therefore, it is maintained thatalthough smaller retailers cannot compete directly with multiple retailers on price, retailSMEs may be better focused and equipped to serve specific international markets (Doyleand Broadbridge, 1999; Lipow, 2002; Chetty and Campbell-Hunt, 2003). By operating asa market “nicher” with differentiated and unique products, SMEs can successfully servea narrowly defined segment and service a small proportion of demand in theinternational markets (Bloodgood et al., 1997; Kohn, 1997; Merrilees and Tiessen, 1999).

In the light of the need for competitive strategy through product differentiation(Barney, 2002), it can be argued that retail SMEs must be less marketing-orientated andmore market-orientated when considering internationalisation activity. In other words,not necessarily influencing the market explicitly, but rather reacting to marketopportunities by following strategies of product differentiation and adaptation(Lanzara, 1987; Michmann and Mazze, 2001). According to Porter (1980) productdifferentiation can occur on seven levels: product features, linkages between functions,timing, location, product mix, links with other firms and reputation. In a like manner,Simpson and Thorpe (1996) found that the product, lifestyle, image and niche of thefirm’s brand were key competitive advantages unique to specialty retailers (smaller insize) with successful operations in international markets. Small- and medium-sizedretailers may also differentiate from larger retailers through the image and lifestyle oftheir product offering and brand, positioning their merchandise exclusively to theluxury market (Spannagel, 1993).

Importance of entrepreneur/managerThe international experience and orientation of the owner-manager or entrepreneur ofa firm can also be viewed as an antecedent to, and driver of, SME internationalisation

IMR23,1

28

(Miesenbock, 1988; Reuber and Fischer, 1997; Burpitt and Rondinelli, 2000). While thefocus of this study is placed upon the firm, as opposed to the entrepreneur, it recognisesthat factors relating to managerial competence, international orientation and corporatevision can be recognised as key drivers of internationalisation (Hollander, 1970;Treadgold, 1989; Williams, 1991; Reuber and Fischer, 1997; Doherty, 2000; Fillis, 2001).

From the literature it has been found that the company founder has an importantinfluence upon the strategic orientation, resource orientation, management structure,reward philosophy, growth orientation and entrepreneurial culture of a firm(Stevenson, 1983). Hence, it can be argued that the vision, direction and ultimatecompetitive advantage of the firm in international markets is directly related to thecharacteristics of the decision-maker (Morgan, 1997). Likewise, the internationalorientation of the senior manager/s or entrepreneur has a significant impact upon thecompany’s network relationships in foreign markets, which in turn has a bearing onthe direction of international expansion and the subsequent market entry strategy.Fundamentally then, it may be argued that SME international development is not onlydriven by the accessibility of resources, but by the competence and vision ofmanagement (Chandler and Hanks, 1994).

Firm networksIn the case of international SME studies, competitive advantage may be defined notonly by internal resources, but also by interaction and relationships with other firms(Johanson and Mattsson, 1988; McKieran, 1992; Coviello et al., 1998; O’Farrell andWood, 1998). It has been argued that social and business networks have the potential toact as catalysts for international business expansion (Merrilees et al., 1998; Coviello andMcAuley, 1999). Not only can networking overcome internal resource deficiencies(Westhead et al., 2001), but yield access to knowledge and experience absent within thefirm (Vida et al., 2000; Rutashobya and Jaensson, 2004). These may be both informaland formal contacts in key and target markets, ranging from friendship and familylinks offshore to contacts with business and government organisations (Coviello et al.,1998). Relatively recent research by Holmund and Kock (1998) and Apfelthaler (2000)highlight the importance of down stream activities, in the form of personal and socialcontacts via family or friendship links, as compelling forces behind SMEinternationalisation. Moreover, from a formal perspective, international networkingcan involve upstream participation in international trade fairs, exhibitions, sharing thesame suppliers and buyers (Koch, 2001), right through to strategic alliances, jointventures and change in ownership/management (Bell et al., 2001; Lindsay et al., 2003).

External assistanceThe owners of small firms often encounter information obstacles, lacking the businessskills or personnel to assemble, and interpret information on international expansion(Westhead et al., 2001). Owing to the inability of SMEs to accumulate all necessaryresources, some firms may acquire strategically relevant information forinternationalisation using external information sources (Morgan and Katsikeas,1997). External assistance may include hiring new managerial talent experienced ininternational business (Holmund and Kock, 1998) or communicating with expertsoutside the company (Terziovski, 2003). It has been suggested that the acquisition ofexport marketing information to aid decision-making is a key factor in explaining

SME retailers

29

superior levels of export performance (Culpan, 1989; Hart and Tzokas, 1999). But, in theUK, Crick and Czinkota (1994) found that exporting firms were largely unaware ofgovernment programmes available for assisting international activity. Therefore, itmay be argued that despite the potential market information and contacts availablefrom government bodies, many SMEs with limited knowledge are unaware ofopportunities in foreign markets (Westhead et al., 2001).

Process of international developmentTraditional models of internationalisation contend that firms exhibit an evolutionaryprogression in their international operational development. The Uppsala model( Johanson and Vahlne, 1977) suggested that firms gradually internationalise in anincremental manner through a series of evolutionary “stages”. Firms were presumed tobegin exporting by targeting “psychically close” countries and through confidence andexperience, firms committed greater resources and targeted countries more“psychically distant” (Johanson and Wiedersheim-Paul, 1975; Bilkey and Tesar,1977). This “stages” view of internationalisation has also found support in theinternational retailing literature (Robinson and Clarke-Hill, 1990; Treadgold, 1990;Pellegrini, 1994). The international movements of large multinational retailers haveprovided much support for this perspective in that empirical studies have foundmultinational retailers to pass through phases in their international development andseek more familiar environments before moving on to distant markets (Treadgold,1990; Myers and Alexander, 1996).

Although the stage theories of internationalisation have gained considerablesupport, they have also attracted significant criticism. A key criticism of the stagesmodel is that it suggests the presence of a deterministic and mechanistic path by whichfirms implementing an international strategy must follow (Buckley et al., 1979; Reid,1986; Bell, 1995). Recent studies in the field of SME internationalisation have takenaccount of the randomness and complexities involved in the internationalisationprocess which may cause some SMEs to leapfrog stages or enter markets that aredistant from the domestic market (Ibeh, 2003; Rundh, 2001).

It has been suggested that the process of international expansion for SMEs isactually a process of change (Piercy, 1982) and more casual in approach for businessservice firms, compared to manufacturers (O’Farrell and Wood, 1998). Research studieshave shown that the process of international expansion adopted by SMEs is neitherpredetermined nor systematic (Lanzara, 1987; Bell et al., 2001) and is characterised by alesser degree of determinism and a more active role given to the firm (Welch andLuostarinen, 1988; Dalli, 1994).

These criticisms of the stages model are particularly relevant in the context ofinternational retail SME expansion, whereby retail firms are faced with a selection ofentry modes which facilitate rapid expansion and the bypassing of the various stagesin the expansion process. It has been found that retailers, in general, do not alwaysfollow a progressive path to internationalisation but often scale down theirinternational operations with a view to either progressive deinternationalisation orperhaps further activity in the future (Alexander and Quinn, 2002). Furthermore, thenetworks and relationships between smaller retail firms and foreign business partnersmay lead to the spontaneous development of new expansion opportunities, causing arapid rush of international activity.

IMR23,1

30

Direction of foreign expansionInternational development for smaller retailers may not always be confined togeographically and culturally close markets, but rather the specialist marketdimensions of the company’s products can permit retail SMEs to accessopportunities in new markets regardless of cultural diversity (Hutchinson et al.,2002). Likewise, small- and medium-sized retailers seeking internationaldevelopment, and empowered by a globally relevant brand, format and planningflexibility, may have access to opportunities in markets not necessarily culturally orgeographically proximate (Alexander and Quinn, 2001). According to Lanzara (1989)luxury products exclusive to the high-income consumers, are often generically“international” requiring only small changes to meet the special tastes of individualmarkets. Therefore, smaller retailers with a luxury brand may be more apt to acentrally controlled strategy with a limited but consolidated presence throughflagship stores in prominent capital cities throughout the world, typically London,Paris, and New York.

Entry mode strategiesInternational firms can choose between various market entry modes for foreignmarkets depending on the amount of resource commitment available, extent of risk,potential for returns and degree of control required (O’Farrell et al., 1998; Yip et al.,2000). Retail companies would appear to have a broad selection of market entry modesat their disposal, including exporting, licensing, in-store concessions, franchising, jointventures, and partly or wholly owned direct investments (McGoldrick and Davies,1995). SMEs, on the other hand, have a more limited range of international entry modesto choose from, a narrower operational base from which new international activitiescan be taken (Papadopoulos, 1987; Benito and Welch, 1994) and, therefore, generallyavoid entry modes that require greater resource commitments (Erramilli and D’Souza,1993).

Lower cost and control entry modes such as licensing and exporting/wholesalingdirectly to the market are attractive methods of entering a foreign market with lessfinancial commitment. While licensing offers inexpensive yet “fast track” internationalexpansion, it may not be appropriate for retailers with distinct ownership assets(Sternquist, 1997). A retailer must have built a successful product brand, if the brandname is to be sold or licensed to the market (Davies, 1992). Whereas, wholesaling hasbeen found by fashion retailers to be an effective preliminary method of foreign marketentry in terms of a low-risk means of generating cash flow, customer loyalty andmarket intelligence (Moore et al., 2000).

Networking and partnerships can provide smaller firms with both the competitiveadvantage and the option of resource-sharing entry methods to facilitate internationalexpansion (Vatne, 1995; Rutashobya and Jaensson, 2004). Franchising has providedretailers such as Body Shop and Benetton with a route to expansion that is less costlyand risky than joint ventures or acquisitions (Alexander and Quinn, 2001). Ideally,franchise operations are an innovative way to combine the advantages of largerbusiness, such as economies of scale and product development, with the advantages ofsmall-scale entrepreneurship (Sanghavi and Pavlin, 1996).

However, franchising should not be considered a straightforward option for smallcompanies, it has been argued that smaller retailers are less likely to be successful in

SME retailers

31

attracting potential franchisees compared to more established franchisers that havewell-known brands (Alon, 2001). It has also been shown that while franchisingfacilitates rapid international expansion for small firms, the restrictive effects of smallsize, in terms of support provision and the limited resources to control and monitordiverse international operations, may become highly significant over time as theinternational network expands (Quinn, 1999).

Higher degrees of control modes (at a high investment cost), such as wholly ownedsubsidiaries and flagship stores are also appropriate for retailers with highlyproprietary products or processes. Retail innovations and specialist products aredifficult to defend from imitators, therefore, some smaller firms may find it necessaryto internalise their innovations (Pellegrini, 1991) and open wholly owned subsidiariesin various countries. According to research by Moore et al. (2000) luxury and fashionbrands typically open flagship stores within premium shopping streets across theworld (such as Bond Street in London and Fifth Avenue in New York) as the vitalcomponent of their marketing communications strategy. Although costs are very highand turnover is modest, the flagship store supports wholesale business and securesreputation of a brand.

Theoretical frameworkThe key themes from the theoretical insights aforementioned have been integrated andpresented in a theoretical framework. This theoretical framework is organised aroundcore aspects of international development, as defined by previous studies frominternational retail and SME research. From Figure 1, the key areas presented includethe barriers, stimulants, drivers, facilitators, process, and market entry strategy ofretail SME internationalisation.

From the broader literature retail SMEs stimulated by a specialist market strategyor driven by strong entrepreneurial management and firm networks, may overcomeany barriers (strategic, operational, information or process) to internationalisation.Furthermore, external assistance from government or consultancy firms may alsoaddress any resource obstacles and facilitate expansion overseas. Theprocess/direction of retail SME internationalisation and entry mode choice may bothaffect, and be affected by, how the company is stimulated and driven into newinternational markets.

This framework charts the existing body of knowledge on international retail andSME expansion and identifies several important gaps and research questions (Perry,1998). These issues or questions are not expressed as precise, testable, closed yes/nopropositions, but as general broad, open research issues (Yin, 1994):

RQ1. What types of barriers inhibit international expansion for retail SMEs?

RQ2. How are these barriers overcome?

RQ3. Can company strategies of differentiation or market appeal stimulate retailSME expansion?

RQ4. How important is entrepreneur/decision-maker in directing the companyoverseas?

RQ5. Do firm networks drive retail SME international expansion?

IMR23,1

32

RQ6. What type of assistance is available in UK from external organisations, anddoes this facilitate retail SME expansion into foreign markets?

RQ7. Is there any pattern to the direction and approach to the foreign developmentof small- and medium-sized retailers from the UK?

RQ8. What types of entry mode choices are available and appropriate tointernational retail SMEs and why?

Figure 1.International retail SME

development: a theoreticalframework

STIMULUS

SPECIALIST STRATEGYSpecialist strategies, focused retail conceptsand strong brand enable differentiation from

competitors in international market

MARKET STRATEGYLess marketing-orientated and more market-

orientated with merchandise directed atinternational premium or middle-market

consumers

DRIVERS

ENTREPRENEUR/ MANAGERVision, experience and know-how ofmanagement influence the direction,

speed and strategy ofinternationalisation

NETWORKSFormal and informal relationships of

management are central to internationalexpansion strategies

PROCESS OFDEVELOPMENT

DIRECTIONInternational appeal of

brand: allows expansion notonly into close markets butdistant capital cities across

the world

APPROACHIt is a process of change,

more opportunistic,informal and haphazard in

nature

ENTRY MODECHOICE

DEPENDENCYVARIABLESProduct Assets

(brand and market appeal)Resource Capability

(financial andorganisational commitment)

OPTIONSOwn Store,Concessions,Franchising, Wholesale

Licensing and Distribution

BARRIERS

STRATEGIC: risk, management attitudes, lack skillsOPERATION: financial constraints

INFORMATION: limited market knowledgePROCESS: lack of interaction with key parties

FACILITATORS

EXTERNAL ASSISTANCEGovernment programs or

consultancy service

SME retailers

33

These questions and issues are addressed throughout the findings and discussion ofthe case company evidence.

Research methodologyA case study design was chosen for several reasons. First, given the paucity ofresearch in this area, a more exploratory and theory building approach was deemedappropriate (Eisenhardt, 1989; Strauss and Corbin, 1994; Collis and Hussey, 2003).Exploratory case studies are appropriate where the existing knowledge base is poorand the available literatures can provide no conceptual framework or hypotheses tonote (Yin, 1994; Perry, 1998). The theoretical framework presented in the previoussection provided a clear indication of the themes and gaps in both the fields of SMEand retail international literature. Therefore, it was anticipated that the inductiveprocess of data generation involved in case study research would provide a greaterunderstanding (Janesick, 1998) and new insight into retail SME internationalisation.This approach, furthermore, has been credited as an effective way of gaining a richdepth of information about the dynamics of organisational activity (such asinternationalisation), leading to theory generation (Stake, 1994). Finally, the adoptionof a case study approach responds to the recent calls in the fields of internationalretailing and SME internationalisation for more in-depth studies (Sparks, 1995;Coviello et al., 1998; Doherty, 2000; Goldman, 2001).

The first stage of the research methodology was to identify SME retailersoperating in the UK market with international operations. Cases were selected by atheoretical sampling design, and this allowed for the selection of similar firms inorder to generate theory. The retail company cases were selected by the followingcriteria: case companies with sales turnover less that £24 million must originate inthe UK, with Head Office location in the UK, and operate in at least oneinternational market. From a sample of 17 retailers, letters were sent to themanaging director of each firm explaining the purpose of the research andrequesting access to key personnel. Nine out of the seventeen agreed to participatein the study. The level of access requested included face-to-face in-depth interviewswith relevant persons within senior management (at least two) involved in theinternational decision-making process of the company, and any other relevantinformation.

Data was collected from a number of sources. Secondary data was analysed toprovide further background material and to help triangulate the data. By collectingseparate impressions together, a fuller and richer picture of the firm’s experience wasbuilt (Collis and Hussey, 2003). This included case histories, promotional material oneach firm, archival information and company reports. Interviews were conducted withthe international manager or senior manager/s responsible for the internationalactivities of the firm and were transcribed and analysed using analytic coding.Throughout the duration of the study analysis of the data went hand in hand with datacollection, to allow for the emergence of important themes and patterns in the data(Taylor and Bogdan, 1984).

The paper now presents the findings from the case studies. A thematic summary ofthe findings is provided firstly, followed by a cross-case analysis of the findings. Directquotes from case informants are used to facilitate the analysis, as they are believed tobest reflect the phenomena under investigation (Coviello et al., 1998).

IMR23,1

34

FindingsThe cross-case analysis revealed a number of key themes that emerged from the datawhich consist of a number of sub-categories, shown in Table I. The findings willtherefore be presented around these key themes.

Company/industry profileThe nine retail SMEs in this study operate within four different sectors (clothing andaccessories, beauty and cosmetics, sports and leisure and jewellery and gifts) of theretail industry. For reasons of confidentiality, these companies cannot be named.However, to facilitate a full understanding of the similarities and differences betweencases, companies will be referred to as companies A, B, C, D, E, F, G, H and I in thediscussion that follows.

Companies E, C and D operate within the beauty and cosmetics sector of the retailindustry. Company C is a very English firm who sells gift orientated products whilecompany E, is essentially a “perfumer” with a small range of accessories aimed at thepremium end of the market. Company D is slightly different from companies C and E inthat it produces and sells only natural products designed for consumers who desirealternative remedies to combat ailments. In the clothing and accessories sector, bothcompanies B and A operate specifically in the designer and premium end of theconsumer market, but company I targets one specific consumer segment – clothes andaccessories for big and tall men. In the sports and leisure sector, company H has twodivisions within the firm: sports and travel dedicated to the production and selling of

Theme Sub-category

Industry profile Beauty and cosmeticsClothing and accessoriesJewellery and giftsSports and leisure

Firm size Size: turnover, age and international experienceBarriers: finance, time, contacts

Barriers Financial commitmentComplexity of international marketsMarket informationBrand controlManagement resources

International stimulus Specialist/niche marketUnique conceptInternational brand potentialBritish/English lifestyle image

International drivers Management qualitiesCompany networksAccess to external market information

Process of international development Opportunistic developmentSpeed of international expansionMarket expansion patterns

Entry mode strategies Entry mode choiceDependency variablesVertical integration (manufacturer to retailer)

Table I.Thematic summary

of findings

SME retailers

35

bespoke and collectable guns and specialist outdoor activities and holidays, and theother selling clothes and accessories to complement the luxury adventure lifestyle of itscustomers. Finally, both companies F and G operate within the jewellery and giftssector.

Firm sizeTo illustrate the domestic and international activities of the nine companies in thisstudy, Table II describes their size in terms of turnover and number of stores in the UKand the extent of their foreign development in the light of their experience overseas andthe number of international markets entered.

From Table II the size of the companies in terms of domestic turnover indicates abroad spectrum of cases included in this study: three companies are towards the smallsize of SME (less than £10 million), four are mid-sized (between £10 and £29 million)and two are at the top end of the SME definition (between £20 and £25 million).Likewise, in terms of age and experience there is a mixed comparison, with threecompanies less than 10 years old, four between 10 and 30 years and two between 30 and60 years. As regards the international scope of business activities in these companies,there appears to be no relationship between size of sales at home and that abroad.In other words, it can be argued that even a small domestic business constrained bysize issues, may establish a successful international presence (for example, seecompanies D and E).

BarriersThe main barriers expressed by the majority of the retail SMEs in this study were(in order of importance) financial commitment, complexity of international markets,market information, brand control, and management resources. In terms of financinginternational expansion, company I, insist as “a small family run business . . . financingis an issue . . . there is an element of risk for the shareholders and family”. As companyF argue, internationalisation is “less risky for larger companies . . . since they have alarger pool of money to fall back on”.

The cultural, legal, economic and consumer differences between marketscontributes to the complexity of foreign market development, as company B arguesthat “international expansion is much more complex than domestic growth . . . evenwithin the EU there are still huge differences in local restrictions and legalities”.Both companies H and F maintain that smaller retailers expanding into new countries

Company UK T/over (£m) Number of UK stores Years in overseasNumber of overseas

countries

D 5.7 15 20 17E 6.5 21 12 10H 8.2 2 10 2F 10.8 3 2 1I 11.5 32 32 3G 12.0 16 5 10A 18.0 20 60 29C 22.3 34 25 30B 25.7 10 25 14

Table II.Domestic andinternational profile ofcase companies

IMR23,1

36

“need to understand the differences between markets” and “recognise the needs of theculture”. The idiosyncrasies of foreign markets necessitate prior research and analysisof the target market. In order to make a fully informed decision retail SMEs “have toaccount of the risks and assess the market very well and in-depth before making aninternational move” (company A). Likewise, company F believes internationalisationas a high risk therefore “you need to really understand the market you are going intoand really understand the reasons why you are doing it”.

For the retail SMEs in this study (companies A, D, E, G and I) that have stronginternational brands, “protection of the brand is vital” (company D). According tocompany E “the risks that people are concerned with are the loss of control . . . in termsof control in brand management”. Therefore, management resources to support theinternational expansion of the company’s and brand “is a very time consuming andoften complex procedure, especially dealing with different cultures and markets”(company D). Company I state that management resources are “the biggest cost,getting the people in place” and “whenever you start to go international you need to putin place the infrastructure that is going to serve you for the next year or two” (companyD). The findings will now describe how retail SMEs overcome these obstacles tointernationalisation stimulated by specialist market strategies, driven by strongmanagement and company networks, and enabled by the adoption of key entry modestrategies.

International stimulusSpecialist/niche market advantages. These companies can be seen to employ variousspecialist retail strategies, and these may be considered in terms of single-product,single-client and single-theme market strategies (Tordjman, 1994). Table III illustratesthe types of differentiated strategies utilised by British retail SMEs both at home andabroad.

The findings from Table III indicate that retail SMEs are less marketing-orientatedand more market-orientated in consideration of internationalisation activity. CompanyB, for example, strongly argued that “luxury is the focus . . . targeting the middle tohigh class customer”. These specialist market advantages are further explained byFigure 2 which describes the market appeal of the nine retail SMEs on a continuumfrom high price and the premium end of the market towards a more moderate priceaccessible to the middle-market. These firms have been placed on this diagramaccording to the description given by each company respondent.

Niche market International retail SMEs

Single-product E: “perfumer”C: toiletries and giftsG: “luxury gifts and accessories”F: top-end jewellers

Single-client I: “destination shop for big and small men”D: for those educated in healthy alternatives

Single-theme H: “luxury adventure”B: “English lifestyle aspirations”A: “pure British style”

Table III.Specialist market

advantages for Britishretail SMEs in

international markets

SME retailers

37

This strategy of differentiation and specialism is further portrayed by each company inFigure 2, ranging from high price and the premium end of the market towards a moremoderate price accessible to the middle-market. For instance, at the premium endof the market, companies A, B, F and H describe themselves as “luxury” brandstargeting the high-class customer. While companies E, C and G describe their productsas luxury, they are somewhere in the middle between the high and middle market.On the moderate price end of the spectrum, more accessible to middle marketcustomers, companies D and I highlight the niche aspects of their products with moreaffordable prices for the majority of customers.

Unique concept. Although all the firms in this study like to believe they are unique,in the case of company B it feels that it has something different within the luxury area.This company argues that the style of its brand is:

. . . about the best traditional fabrics used in a way that’s slightly disrespectful . . . the oldvintage and raggedly-edged mixed in with the new.

In a very different manner, company F is more “tongue-in-cheek” about the way it doesthings with jewellery and is often cited as “an unstuffy alternative” to traditionaljewellery retailers. According to the company:

. . . every product is hand crafted and tailor-made keeping that spontaneity and creativity andoriginality (about the company) without succumbing to all these pressures of becoming a bigbrand.

Figure 2.Market appeal of Britishinternational retail SMEs

HIGH PRICE- PREMIUM END OF MARKET

“ultimate luxury”“we are one of the mainchoices for top-endjewellery”

“luxury is the focus….targeting the middle to high classcustomer”

“a genuine luxury brand”

“affordable luxury”

“not heavily premium-we are not out of people’sreach”

“niche, but also cater for themore luxury end of the market”

“is affordable to themajority of customers”

MODERATE-HIGH PRICE- MIDDLE MARKET ACCESSIBILITY

B

A

H

F

I

E

G

“luxuryretailer….oftenplaced beside C”

C

D

IMR23,1

38

In a similar way company H proudly states, that “everything is made for one person”.International brand potential. For instance, company D’s brand was:

. . . designed for people who wanted to be healthy naturally and to be more educated abouttheir body and the alternative ways and remedies by which to combat ailments.

The company argues that:

. . . the uniqueness of the concept is something that is appreciated across the world . . . (and thebrand) is a well-known look that people can translate into sales in their country.

This brand in particular draws on the core values of natural and organic treatmentsand the belief about why and how a firm does business. In terms of economicconditions, the top-end luxury brands of companies B, E, F and H are steeped inexclusivity, luxury and English aspirations, trading on the wants and desires ofhigh-income consumers. Company H maintains that its customers throughout allmarkets of the world “love the Englishness and Britishness of the brand”.

British/English lifestyle image. For the companies in this study image, design andcreativity are of paramount importance in international markets, and many of theluxury and up-market goods retailers have traded on classic design and frequentEnglish or British associations. This is obvious in the case of six out of the ninecompanies studied, entailing little adaptation in the international strategies of theseorganisations. Company B, in particular, points out that “the English lifestyleaspiration is very much a key strength in international markets”. It was the distinctBritish country sporting image established in 1976 that influenced the image of theretailer right up to the present day. In company H’s case it is “the Englishness andthe Britishness of the brand” and the long traditions in gun-making that surround thecompany’s heritage that attracts international customers. For companies A and E, theBritish roots of the brand are further demonstrated by Royal Warrants that accompanythe packaging of their goods. This is a “key factor” for the international development ofcompanies A and E in that their foreign customers think “if it is good enough for theRoyal Highness Prince of Wales, then the company is doing something right”.

International driversManagement qualities. There is no doubt that the owner manager has a pivotal roleto play in the international decision-making of retail SMEs. Two-thirds of therespondents pointed out the significance of the entrepreneurial qualities of the founderof the firm and an informal approach to market development decisions. For company F,the founder’s creative background in art school and jewellery design has forged “. . .very much a hands on approach . . . always on the go and fully aware of all the differentmarkets in the world”.

The positive attitude towards international expansion is a strong factor within themanagement of these smaller retail companies and internationalisation is perceived asa challenge rather than an undesirable burden. Company C, 30 years ago, “wasprepared to take risks and opportunities” and company G aspires “to take the brandglobal”. In the case of most of the firms in this study, international expansion isevaluated as a calculated risk, but a risk worth taking: “if it is done right and the time isright and you go into it with the full knowledge of what you are trying to get out of it, itcan be fantastically successful” (company F).

SME retailers

39

From Figure 3, it is evident that three retailers out of the nine were more establishedin terms of business age and expanded into foreign markets much later in theirdevelopment. Regardless of experience, the respondents in the “older” companies alsostressed the continued availability of more and greater opportunities for them both inthe domestic and international markets.

Company networks. Of the nine case studies examined in this study it is interestingto note that five of these companies have experienced a change in company structurewithin the past seven years, involving a take-over by a parent company. In terms of theactual impact upon the organisational structure and international decision-making ofthe company, the international management structure within these SMEs hasremained autonomous. All five companies were operating in international marketsprevious to the take-over and it is evident that adoption by a parent company for theseretailers caused an increase in foreign expansion activities. Company A, parented byan Asian company, stated that “our business has certainly improved in Asia, duringthe time that they have taken over”.

In terms of finance injection, company C argues “if the parent company has avery strong relationship with the bank, then there is no doubt you will benefit fromit”. The financial support that these bigger companies can offer to smaller retailersis also invaluable from an experiential learning perspective, as company Hexplained that “you need the support, you can branch out and try new thingswhen you’ve got big daddy as a resource”. Likewise, regards the inherited networks,company C found that “there is no doubt that the benefits of being part of alarger network and the umbrella that comes with that has had a very positive effecton us”.

Informal networking and knowledge acquired by international travel are alsoimportant for the companies in this study. Company T maintains that “contacts indifferent countries are very important . . . you get a lot of information from what youlearn”. The creation of strong social bonds, often as a result of the founder or seniormanager travelling and living in different foreign countries, has allowed several ofthese firms to access necessary business information. For instance, in companies L andC both founders were drawn to certain markets over others due to the experience ofliving and building solid social relationships in those countries. The owners ofcompany L “knew Hong Kong very well . . . the person who was in charge of letting our

Figure 3.Company age v.experiencein international markets

0

20

40

60

80

100

120

140

160

L N T C M I H P A

Years International

Age

IMR23,1

40

first store we knew”. In the case of company C, “in Scandinavia our distributor therewas a good friend that (the owner) met and liked and became very good friends with”.

Access to external market information (government and private organisations).Four companies (A, B, C and D) used government assistance and consultancy adviceprimarily in the initial decision stage of expansion to acquire information on theconsumer market and business environment of the target country. According tocompany B financial support and assistance from consultancy firms can act:

. . . as a knowledge bank for advice on markets in the Far East, where local information on theeconomy, culture and buying behaviours of the people are very different to the West andrequire special attention.

The government agencies contacted by the companies included the Department ofTrade and Industry (DTI), Trade Partners UK (TPUK) and Business Link. The mainlevel of assistance was the ability of the government to provide business contacts in theinternational markets of interest, either from an agency or franchise partnerperspective. For example, company A when choosing agents “will go to the DTI andthe DTI will give us a list of people” and company C argue that the government route ofassistance is not only less expensive, but important because of “the contacts they canestablish”. In the case of company D, when expanding into “the larger markets wewould consider Business Link and TPUK to do that” both in terms of market research,accessing business contacts and potential franchisees.

However, the general nature of government services was the first point raised incriticism by retail SMEs. It was found that:

. . . each company has an individual way of doing things and they (Business Link) wouldapproach it more broadly and say this is the way to do it (company D).

Secondly, the success rate of making contacts with the appropriate people in the newinternational market was very low. For example, one retailer (company D) argued that:

. . . sometimes these organisations can push you in that proactive direction where you arespeaking to people that are really not right . . . it stopped ultimately because it generated leadsthat were not right for us and there is a reluctance to do that again, to go back to that stagewere we were turning people down.

The third criticism related to the lack of marketing and convenient access toinformation on government exporting assistance. Several retailers had no knowledgeof the exporting assistance available and relevant to SMEs.

Process of international developmentOpportunistic development. The case companies in this study experienced differentprocesses of international development and events leading up to the decision to expandinto new markets. Company B remarked that: “In the early stages, the desire to growinternationally occurred on a day-to-day basis, depending on who walked in the door”.This natural progression to foreign expansion was also characteristic of company Iwho maintains that it was “not part of any strategic vision, but at the time there was aferry from Hull to Rotterdam”.

On the one hand, several of the case companies experienced an unplanned, reactiveand opportunistic initial decision (B, C, D and I), while for others internationalexpansion was part of a planned initiation made in a proactive and systematic manner

SME retailers

41

(F and H). There is evidence among these companies that socialisation through familylinks, friendships and living abroad have had the greatest effect when decisionsregarding choice of markets for expansion are being made. In the case of companies Cand G, the founders of these companies were drawn to certain markets over others dueto the experience of being and living in those countries. For company G the founders“knew Hong Kong well . . . so the person in charge of letting our first store we knew”.In the same way, company C stated:

In Scandinavia our distributor there was a good friend that (the owner) met and liked andbecame very good friends with.

Speed of international development. The relationships which these retail SMEs havebuilt with various actors in the international network may be regarded as highlyimportant for the timing of international market development. Firm C exemplifies thisnotion of informal networking in the process of expansion:

. . . he (the founder) judged the market from the people and whether he liked and trusted them

. . . larger retailers fail because they are too detailed in their execution planning and don’thave enough intuition.

The change in ownership status also marked a clear impetus for an increase ininternational involvement among the retailers in this study. This is related to theirdesire to exploit the international potential of their brands and their need to raisesufficient capital to fund foreign expansion. Company C, although present in Asiabefore the takeover by its Malaysian parent company, was nowhere near as successfulas it was following the change in ownership: “the parent company’s geographicalexperience allowed us to develop the Far Eastern markets a lot stronger”.

However, there were a significant number of companies (A, G, H and I) thatexperienced a somewhat slower pace of expansion. For company H, there was “the needto take every step slowly and efficiently”. Company A believed not in precipitatingforeign market decisions, but in recognising the complexities involves in expansion“you need to account of all the risks and assess the market very well and in-depthbefore making an international move”.

Market expansion patterns. The market development of these companies hasinvolved in many cases the opening of flagship stores within capital cities, locatedtypically within premium shopping streets in London, Paris and New York (companiesB, E, F, G and H). For instance, company E stated that “the original idea was to pickkey cities where we wanted shops . . . prestigious capitals throughout the world”.

Company H emphasised the need to have complete control over its business,therefore, in its three international stores the capital investment has been high:“the image and service has to reflect the level of quality of the brand . . . we put anawful lot into our flagship stores”. Yet, for companies A, C, D and I, less emphasis wasplaced on control and more on access to target markets; franchising, distribution andlicensing agreements have enabled a greater spread of business to an extensiveconsumer market. Two-thirds of the cases expanded initially into geographically andculturally distant markets, such as the US and the Far East. It is evident that retailSMEs, in the context of the UK market at least, tend to possess a strong image and aglobally relevant brand, thus allowing the company to access opportunities in marketsthat are not necessarily culturally or geographically proximate. For company H

IMR23,1

42

“our brand is an international lifestyle brand . . . so it is a very natural thing to moveinto these countries”.

Entry mode strategiesEntry mode choice. From the findings based on these companies, there appears to be avariety of different international entry modes used by retail SMEs. These include ownstores, licensing, wholesaling, concessions and franchising. All companies in this study(except company F who is at the very early stage of internationalisation) have used at leasttwo or more different methods of entry mode strategies in their international development.

Dependency variables. It may be argued from the case evidence that given thebarrier of finance commitment, there is a willingness among these retail SMEs toconsider and accept the trade off between absolute control of own stores and the higherrisk equivalent of franchise and wholesale agreements. The usage of low-cost andlow-control entry mode strategies reflects not only the financial limitations andconstraints placed upon these smaller retailers, but according to these companies thenature of business in the target market can dictate which way the market should beentered. Particularly in the markets of the Middle East, company G believes that“you have to have a franchise partner in the Middle East, you can’t do it on your own”.Some of these companies have had to adapt the entry mode to local requirements, asthey often had to act quickly when an opportunity arose in the market. Company A, forexample, stresses the ability “to be flexible internationally and the way you areexpected to do business in some markets is quite unconventional”.

All the companies in this study emphasised the issue of control and risk associatedwith expansion as important variables in the decision-making process regarding entrymodes. Company C points out that:

. . . you need to decide whether you want complete control or whether you are willing to sharethe risks and this depends on how quickly you want to achieve expansion . . . in smaller moreinteresting markets we will distribute our products, and in the principal markets we will haveour own retail store.

Company D maintains that franchising “eases the financial and organisational risks forus as a company, being a small company, this is really the only way we can feasiblyexpand internationally”. For company G, franchising was the initial entry strategy foroverseas markets:

. . . a risk to our reputation rather than to our wallets . . . a franchise partner in the Middle Eastis the only way to establish a presence successfully.

The appeal of franchising as a viable entry mode strategy for companies D, G and I notonly relates to the low cost aspect, but arguably lies in the niche aspects and strongbrand appeal of their product. Not only can franchising overcome any lack ofknowledge in the target country for the company, but the strong niche appeal of thecompany is an attractive business venture to potential franchisees seeking to fill a gapor niche in their local consumer market.

However, for company G, it has been the case that they:

. . . have got braver and braver, we would now choose to operate in countries where we canoperate directly . . . we have found that the results are better if we do and as we’ve gotfinancially stronger.

SME retailers

43

Company H states the need to have complete control over their brand therefore“franchising is not an option and we won’t license either”. Company A does not takeany financial risks in foreign expansion, using mainly wholesale and licensing as ameans of entry. Although no fiscal risk is incurred in international expansion, thecompany acknowledged that:

. . . there is risk as to exposure of the product . . . and in terms of licensing we are just verycareful in every aspect of the agreement.

Vertically integrated strategy: manufacturer to retailer. All but one of the companiesstudied in this research have experienced integration from manufacturing orproduction into retailing or selling of their goods. The majority of these verticallyintegrated retailers also point out that the production and design of their own goodsremains an important operational aspect of their business and the image of theirinternational brand in all markets. For instance, company D maintained that its herbgarden in Dorset now provides enough herbs to enable them to manufacture most ofthe fresh herb tinctures sold in the shops and used in their products.

There are two key areas important to smaller retailers in this study that haveexperienced vertical integration from producer/manufacturer to retailer. Firstly, theyare fully committed to the in-house manufacture of their products (companies D, E, F,G, H). Secondly, the production of their goods remains important in sustaining theuniqueness of the product’s characteristics, especially in foreign markets (companies Dand H). Company H trades internationally on the craftsmanship and bespoke elementsof its products and remarked that “you are paying for it made by hand by a craftsmanwho has spent up to 7 years in training”. In terms of the implications for entry modechoice, the majority of these companies that have experienced vertical integration fromproduction to retailing have used wholesale and distribution through agents as ameans of entering certain overseas markets.

DiscussionSeveral themes emerge from these case findings, some extend upon the themespresented in the theoretical framework and others add new insights for retail SMEinternationalisation. There is no question from the findings of this study that smallerretailers have both the potential and capability to enter international markets.However, what is important in terms of contribution to theory development is how theymanage to overcome the obstacles in the international development process andsuccessfully establish a presence in overseas markets. The five main barriers tointernationalisation noted by the companies were financial commitment, complexity ofinternational markets, market information, brand control, and management resources.Therefore, in comparison to the literature, retail SMEs do not appear to considerstrategic and process barriers as important obstacles when internationalising. In termsof overcoming the obstacles aforementioned, while the possession of a distinctspecialist strategy driven by strong management serves to stimulate and drive plansfor retail SME internationalisation, it may be argued that networking resources make ita reality.

In terms of international stimulus, the retail SMEs in this study sought toachieve competitive differentiation by using specialist strategies directed at theluxury/premium and middle market consumers. At the top-end of the market there are

IMR23,1

44

those luxury retail SMEs portraying strong affiliations with traditional style valuesand quality (e.g. company A and H) and sources of utility typically include high qualityproducts, exclusive brand recognition, excellent service and elevated prices. At themiddle-market spectrum there are those concept retailers which focus on a particularmarket segment and customer (e.g. company D and I) with recognisable and moreaffordable middle market brands and products. For British retail SMEs withoperations abroad the high quality of their international retail brand may also bebedded in British imagery and highlighted by awards of Royal Warrants.

As regards the important role of the entrepreneur/manager in internationaldecision-making, the driving influence of the owner’s international orientation andbusiness outlook was a strong theme to emerge, thus confirming the findings of manystudies within the international SME literature (Reid, 1981; Apfelthaler, 2000).However, given the constraints of size and the noted barriers, the findings suggest thatmost retail SMEs in this study have used both formal and informal networking toovercome such obstacles to expansion.

One interesting aspect for five of these companies has been a change in companystructure, involving a take-over by a parent company. The adoption by a financiallystronger parent bridged any gaps in finance, increased manpower resources andbrought new expertise, which caused an increase in company international activity.Not only can such networking overcome any obstacles to foreign expansion, but thesefindings confirm that informal relationships built with friends and family are highlyimportant for the timing of retail SME international development.

The use of government and consultancy services may also bridge marketinformation obstacles to internationalisation for retail SMEs (e.g. companies A, B, Cand D). However, the presented findings suggest that the majority of firms felt that theactivities of government agencies failed to facilitate the internationalisation process,which supports to some extent the research conclusions of Westhead et al. (2001).

The path to internationalisation for these companies is marked more by a process ofchange rather than a predetermined strategic plan of expansion. The findings wouldsuggest that international development could best be described as a reaction andresponse to opportunities both at home and abroad. For these companies,internationalisation tends to be ad hoc, in that it involves opportunistic reaction tosporadic events and propositions from the international market. The level ofsophistication and flexibility required for operating in culturally distant markets arequalities inherent within the majority of the retail SMEs examined here who haveexpanded into such distant territories very successfully. The specialist characteristicsand format of these smaller retailers significantly impacts upon the direction ofinternational expansion. It can be argued that these retailers with a strong image andglobally relevant brand have secured access to opportunities in markets that are notnecessarily culturally or geographically proximate. For example, the luxury retailers(companies A, B and H) in this study have located in capital cities, thus exploiting theirpremium appeal.

There are a variety of entry methods employed by these smaller retailers acrossdifferent markets. Although a large percentage of the firms have opened at least onestore outlet internationally, it appears that wholesaling, or selling products directly toforeign markets, is an attractive method readily used by the majority of these firms inorder to overcome any financial obstacles to foreign expansion. In terms of the factors

SME retailers

45

influencing entry mode choice, it may be argued that the key issue for these companiesis the level of available resources. In terms of the barriers to internationalisation, formost of the companies, the major influence upon the entry method chosen was the levelof cost involved and the amount of risk incurred to the company/brand in the decisionto enter a new foreign market.

In the case of some companies (e.g. companies F and H) a large degree of importancewas placed upon protecting the brand and name of the company in new and foreignmarkets. In order to protect the exclusivity of the brand, an international presence forretail SMEs with premium products was achieved either through organic growth(flagship stores in prominent capital cities) or in-store concessions. For thosecompanies where product assets and the exclusivity of the brand are not critical factors(e.g. companies D and I), it was found that non-controlling market entry modes such asexporting, licensing, wholesale and distribution agreements proved attractiveforeign-market entry modes, due to the lower level of resource commitment.

Implications for private and public support organisationsThis study offers insights into the SME sector of the retail industry in the UK in termsof their experience and adoption of government exporting programmes. Firstly, it maybe suggested that policy-makers need to recognise the idiosyncrasies of retailing incomparison to manufacturing internationally, therefore, adapting the general nature ofexporting programs to suit the needs of retailers. Given the specialist nature andformat of these SME retailers and their operation internationally in niche and luxurymarkets, it may be more appropriate to create a specific program or forum aimed at theissues of branding, product quality/image, and entry mode strategies in differentinternational markets.

Secondly, in terms of access to information and the marketing of exporting servicesand programmes, these government agencies may need to assess the level and targetsof their marketing campaigns, to ensure that all types of companies with internationalpotential can be reached. Moreover, policy initiatives should aim to develop theinternational orientation of the owner-manager as a precursor to the formulation andimplementation of internationalisation strategy as suggested by Lloyd-Reason andMughan (2002).

Ultimately, the challenge facing government bodies requests the furtherdevelopment of channel relationships, networking contacts and international-relatedinformation programs accessible to retail SMEs. There is no doubt that governmentassistance has a purpose and a role in the international development of small- andmedium-sized retailers in the UK, however, this barrier of wrong perception that mustbe first addressed by government, and then more closely targeted policy initiatives canbe developed.

Implications for managersThe main implications for managers of small international firms concern attitudes,perceptions and knowledge of international business strategy. Chetty andCampbell-Hunt (2003) found that managers need to be aware of the mental modelsthey have that could be their main barriers to internationalisation. Based on theevidence from this study, managers of retail SMEs need to invest enthusiasm andsustenance into their relationships with customers, suppliers and distributors: it is

IMR23,1

46

through these networks that they can overcome any lack of knowledge of foreignmarkets.

Without sufficient know-how and formal training in international retailing,successful foreign expansion is unlikely (Vida et al., 2000). Sometimes a false sense ofcertainty can lead firms into believing that help is not needed, but SMEs should beencouraged to actively participate in relevant training sessions and trade talkssponsored by government organisations. Specifically for those SMEs at an early stageof internationalisation, hiring new managerial talent experienced in internationalbusiness or obtaining assistance from government exporting bodies by existingmanagement will dramatically improve the internal planning procedures andcapabilities of the firm.

ConclusionThe aim of this paper has been to encourage additional and further research ratherthan providing an exhaustive review of the international development of retail SMEs.From the theoretical framework presented, key research issues have been identified.The findings from this study not only confirm that smaller British retailers have boththe potential and capability to enter international markets successfully, but providesinitial insights into how they overcome the constraints of size and establish aninternational market strategy. As there is now strong empirical evidence that neithersize, age nor experience matters to British international retailers, this analysis of actualcompany activity in the UK retail industry provides important insights into a neglectedarea of international retail study and this should help to develop the body of knowledgeon SME internationalisation in general.

Knowledge on SME retailer internationalisation, as it stands, is at a very early stageof development. Several of the themes emerging from these findings may be exploredin more depth in future research. For example, the issue of branding in theinternationalisation of retail SMEs, the role of the entrepreneur and owner/manager inthe international decision-making process of retail SMEs, the factors that influence themarket selection decisions and entry mode strategies. Exploration of these issueswould undoubtedly provide important insights into a neglected area of internationalretail study, and would serve to further develop the body of knowledge on SMEs ingeneral.

References

Alexander, N. (1990), “Retailing post 1992”, Service Industries Journal, Vol. 10 No. 1, pp. 172-87.

Alexander, N. and Quinn, B. (2001), “SMEs and the internationalisation of retailing”, Marketingand Retailing Working Paper Series 01/3, Faculty of Business and Management,University of Ulster, Belfast.

Alexander, N. and Quinn, B. (2002), “International retail divestment”, International Journal ofRetail & Distribution Management, Vol. 30 No. 2, pp. 112-25.

Ali, A. and Swiercz, P.M. (1991), “Firm size and export behaviour: lessons from the Mid West”,Journal of Small Business Research, Vol. 29, pp. 70-1.

Alon, I. (2001), “The use of franchising by US based retailers”, Journal of Small BusinessManagement, Vol. 39 No. 2, pp. 111-22.

Apfelthaler, G. (2000), “Why small enterprises invest abroad: the case of four Austrian firms withUS operations”, Journal of Small Business Management, Vol. 38 No. 3, pp. 92-8.

SME retailers

47

Arnold, S. and Fernie, J. (2000), “Wal-Mart in Europe: prospects for the UK”, InternationalMarketing Review, Vol. 7 Nos 4/5, pp. 416-32.

Barney, J.B. (1986), “Organisational culture: can it be a source of sustained competitiveadvantage?”, Academy of Management Review, Vol. 11 No. 3, pp. 656-65.

Barney, J.B. (2002), Gaining and Sustaining Competitive Advantage, Prentice-Hall, EnglewoodCliffs, NJ.

Beamish, P.W., Craig, R. and McLellan, K. (1993), “The performance characteristics of Canadianversus UK exporters in small and medium sized firms”, Management International Review,Vol. 33, pp. 121-37.

Bell, J. (1995), “The internationalisation of small computer software firms: a further challenge tostage theories”, European Journal of Marketing, Vol. 29 No. 8, pp. 60-76.

Bell, J., McNaughton, R., Young, S. and Crick, D. (2001), “Towards an eclectic model of small firminternationalization”, in Jones, M. and Dimitratos, P. (Eds), Researching New Frontiers,paper presented at Fourth McGill Conference: International Entrepreneurship.

Benito, G.R.G. and Welch, L.S. (1994), “Foreign market servicing: beyond choice of entry mode”,Journal of International Marketing, Vol. 2 No. 2, pp. 7-27.

Bilkey, W.J. and Tesar, G. (1977), “The export behaviour of smaller-sized Wisconsinmanufacturing firms”, Journal of International Business Studies, Vol. 8 No. 1, pp. 93-8.

Bloodgood, J.M., Sapienza, H.J. and Almedia, J.G. (1997), “The internationalisation of newhigh-potential US ventures: antecedents and outcomes”, Entrepreneurship Theory &Practice, Vol. 20 No. 4, pp. 61-76.

Bonaccorsi, A. (1992), “On the relationship between firm size and export intensity”, Journal ofInternational Business Studies, Vol. 23 No. 4, pp. 605-35.

Buckley, P.J. (1989), “Foreign direct investment by small and medium sized enterprises: thetheoretical background”, Small Business Economics, Vol. 1, pp. 89-100.

Buckley, P., Newbould, D. and Thurwell, J. (1979), “Going international – the foreign directinvestment decisions of smaller UK firms”, EIBA Proceedings Uppsala, pp. 72-87.

Burpitt, W.J. and Rondinelli, D.A. (2000), “Small firms’ motivations for exporting: to earn andlearn?”, Journal of Small Business Management, Vol. 38 No. 4, pp. 1-14.

Burt, S. (1986), “The Carrefour group – the first 25 years”, International Journal of Retailing, Vol. 1No. 3, pp. 54-78.

Cavusgil, S.T. (1976), “Organisational determinants of firms’ export behaviour: an empiricalanalysis”, PhD dissertation, University of Wisconsin-Madison, Madison, WI.

Cavusgil, S.T. (1984), “Differences among exporting firms based on degree ofinternationalisation”, Journal of Business Research, Vol. 12 No. 2, pp. 195-208.

Chandler, G. and Hanks, S.H. (1994), “Founder competence, the environment, and ventureperformance”, Entrepreneurship Theory & Practice, Vol. 18 No. 3, pp. 77-89.

Chetty, S. and Campbell-Hunt, C. (2003), “Paths to internationalisation among small andmedium-sized firm: a global versus regional approach”, European Journal of Marketing,Vol. 37 Nos 5/6, pp. 796-820.

Collis, J. and Hussey, R. (2003), Business Research: A Practical Guide for Undergraduate andPostgraduate Students, Palgrave Macmillan, Basingstoke.

Coviello, N. and McAuley, A. (1999), “Internationalisation and the smaller firm: a review ofcontemporary empirical research”, Management International Review, Vol. 39 No. 3,pp. 49-61.

IMR23,1

48

Coviello, N.E., Ghauri, P.N. and Martin, K.A-M. (1998), “International competitiveness: empiricalfindings form SME service firms”, Journal of International Marketing, Vol. 6 No. 2, pp. 8-27.

Crick, D. and Czinkota, M.R. (1994), “Export assistance: another look at whether we aresupporting the best programs”, International Market Review, Vol. 12, pp. 61-72.

Culpan, R. (1989), “Export behaviour: the relevance of firm size”, Journal of Business Research,Vol. 18, pp. 207-18.

Dalli, D. (1994), “The exporting process: the evolution of small and medium sized firms towardinternationalisation”, Advances in International Marketing, Vol. 6, pp. 85-110.

Davies, G. (1992), “Two ways in which retailers can be brands”, International Journal of Retail &Distribution Management, Vol. 20 No. 2, pp. 24-34.

Devins, D. (1999), “Supporting established micro businesses: policy issues emerging from anevaluation”, International Small Business Review, Vol. 18, pp. 86-96.

Doherty, A.M. (2000), “Factors influencing international retailers market entry mode strategy:qualitative evidence from the UK fashion sector”, Journal of Marketing Management,Special Millennium Edition, Vol. 161 Nos 1/3, pp. 223-45.

Doyle, S.A. and Broadbridge, A. (1999), “Differentiation by design: the importance of design inretailer repositioning and differentiation”, International Journal of Retail & DistributionManagement, Vol. 27 No. 2, pp. 72-82.

DTI (2001), “Opportunity for all in a world of change”, White Paper on Enterprise, Skills andInnovation, Department of Trade and Industry, London.

Eisenhardt, K.M. (1989), “Building theory from case study research”, Academy of ManagementReview, Vol. 14 No. 4, pp. 532-50.

Erramilli, M.K. and D’Souza, D.E. (1993), “Venturing into foreign markets: the case of the smallservice firm”, Entrepreneurship Theory & Practice, Vol. 17, pp. 29-41.

European Commission (2000), “The European observatory for SMEs”, Report 6, Office forOfficial Publications of the European Communities, Luxembourg.

Fillis, I. (2001), “Small firm internationalisation: an investigative survey and future researchdirections”, Management Decision, Vol. 39 No. 9, pp. 767-83.

Goldman, A. (2001), “The transfer of retail formats into developing economies: the example ofChina”, Journal of Retailing, Vol. 77, pp. 221-42.

Hart, S. and Tzokas, N. (1999), “The impact of marketing research activity on SME exportperformance: evidence from the UK”, Journal of Small Business Management, Vol. 37,pp. 63-75.

Hollander, S.C. (1970), Multinational Retailing, Michigan State University, East Lansing, MI.

Holmund, M. and Kock, S. (1998), “Relationships and the internationalisation of Finnish smalland medium-sized companies”, International Small Business Journal, Vol. 16 No. 4,pp. 46-64.

Hutchinson, K., Quinn, B. and Alexander, N. (2002), “SME retailer internationalisation: aqualitative study”, Marketing and Retailing Working Paper Series 03/1, University ofUlster, Belfast.

Ibeh, K.I.N. (2003), “On the internal drivers of export performance among Nigerian firms:empirical findings and implications”, Management Decision, Vol. 41 No. 3, pp. 217-25.

Janesick, V.J. (1998), “The dance of qualitative research design: metaphor, methodolatry, andmeaning”, in Denzin, N.K. and Lincoln, Y.S. (Eds), Strategies of Qualitative Inquiry, Sage,London, pp. 56-85.

SME retailers

49

Johanson, J. and Mattsson, L-G. (1988), “Internationalization in industrial systems – a networkapproach”, in Buckley, P.J. and Ghauri, P.N. (Eds), The Internationalization of the Firm:A Reader, Academic Press, London, pp. 303-21.

Johanson, J. and Vahlne, J.E. (1977), “The international process of the firm: a model of knowledgedevelopment and increasing foreign commitment”, Journal of International BusinessStudies, Vol. 8 No. 1, pp. 23-32.

Johanson, J. and Wiedersheim-Paul, F. (1975), “The internationalisation of the firm: four Swedishcase studies”, Journal of Management Studies, Vol. 12 No. 3, pp. 305-22.

Kaynak, E., Ghauri, P.N. and Olofsson-Bredenlow, T. (1987), “Export behaviour of small Swedishfirms”, Journal of Small Business Management, Vol. 25, pp. 26-32.

Koch, A.J. (2001), “Factors influencing market and entry mode selection: developing the MERMSmodel”, Marketing Intelligence and Planning, Vol. 19 No. 5, pp. 351-6.

Kohn, T.O. (1997), “Small firms as international players”, Small Business Economics, Vol. 9,pp. 45-51.

Lanzara, R. (1987), “Strategic differentiation and adaptation among small and medium-sizedItalian exporting manufacturers”, in Rosson, P.J. and Reid, S.D. (Eds), Managing ExportEntry and Expansion, Praeger, New York, NY.

Leondiou, L.C. (1995), “Export stimulation research: review, evaluation and integration”,International Business Review, Vol. 4, pp. 133-56.

Lindsay, V., Chadee, D., Mattsson, J., Johnston, R. and Millet, B. (2003), “Relationships, the role ofindividuals and knowledge flows in the internationalisation of service firms”, InternationalJournal of Service Industry Management, Vol. 14 No. 1, pp. 7-35.

Lipow, V. (2002), “All the world’s a store: international retail trends”, available at: http://retail.monster.com/articles/international

Lloyd-Reason, L. and Mughan, T. (2002), “Strategies for internationalisation within SMEs: thekey role of the owner-manager”, Journal of Small Business, Vol. 9 No. 2, pp. 120-9.

McGoldrick, P.J. and Davies, G. (1995), International Retailing: Trends and Strategies, Pitman,London.

McKieran, P. (1992), Strategies of Growth, Maturity, Recovery and Internationalisation,Routledge, London.

Masurel, E. (2001), “A dynamic view of SME co-operation and market concentration in Dutchretailing”, available at: http://sbaer.uca.edu/research/1996/icsb

Merrilees, B. and Tiessen, J.H. (1999), “Building generalisable SME international marketingmodels using case studies”, International Marketing Review, Vol. 16 Nos 4/5, pp. 326-44.

Merrilees, B., Miller, D. and Tiessen, J. (1998), “Serendipity, leverage and the process ofentrepreneurial internationalisation”, Small Enterprise Research, Vol. 6 No. 2, pp. 3-11.

Michmann, R.D. and Mazze, M. (2001), Specialty Retailers – Marketing Triumphs and Blunders,Quorum Books, Westport, CT.

Miesenbock, K.J. (1988), “Small business and exporting: a literature review”, International SmallBusiness Journal, Vol. 6 No. 2, pp. 42-61.

Moore, C.M., Fernie, J. and Burt, S. (2000), “Brands without boundaries: the internationalisation ofthe designer retailer’s brand”, European Journal of Marketing, Vol. 34 No. 8, pp. 919-37.

Morgan, R. (1997), “Decision-making for export strategy”, Small Business and EnterpriseDevelopment, Vol. 4, p. 2.

Morgan, R.E. and Katsikeas, C.S. (1997), “Export stimuli: export intention compared with exportactivity”, International Business Review, Vol. 6, pp. 477-99.

IMR23,1

50

Myers, H. and Alexander, N. (1996), “European food retailers’ evaluation of global markets”,International Journal of Retail & Distribution Management, Vol. 24 No. 6, pp. 34-44.

Namiki, N. (1988), “Export strategy for small business”, Journal of Small Business Management,Vol. 26, pp. 32-7.

North, D. and Smallbone, D. (1996), “Small business development in remote rural areas: theexample of mature manufacturing firms in Northern England”, Journal of Rural Studies,Vol. 12, pp. 151-67.

O’Farrell, P.N. and Hitchens, D.M.W.N. (1988), “Alternative theories of small-firm growth: acritical review”, Environment and Planning, Vol. 20, pp. 1365-82.

O’Farrell, P.N. and Wood, P.A. (1998), “Internationalisation by business service firms: towards anew regionally based conceptual framework”, Environment and Planning, Vol. 30,pp. 109-28.

O’Farrell, P.N., Wood, P.A. and Zheng, J. (1998), “Internationalisation by business service SMEs:an inter-industry analysis”, International Small Business Journal, Vol. 16 No. 2, pp. 13-34.

Papadopoulos, N. (1987), “Approaches to international market selection for small andmedium-sized enterprises”, in Rosson, P.J. and Reid, S.D. (Eds), Managing Export Entryand Expansion, Praeger, New York, NY, pp. 128-58.

Pellegrini, L. (1991), “The internationalisation of retailing and 1992 Europe”, Journal ofMarketing Channels, Vol. 1 No. 2, pp. 3-27.

Pellegrini, L. (1994), “Alternatives for growth and internationalisation in retailing”, TheInternational Review of Retail, Distribution and Consumer Research, Vol. 4 No. 2,pp. 121-48.

Perry, C. (1998), “Processes of a case study methodology for postgraduate research inmarketing”, European Journal of Marketing, Vol. 32 Nos 9/10, pp. 785-802.

Piercy, N. (1982), Export Strategy: Markets and Competition, Allen and Unwin, London.

Porter, M.E. (1980), Competitive Strategy, Free Press, New York, NY.

Quinn (1999), “Control and support in an international franchise network”, InternationalMarketing Review, Vol. 16 Nos 4/5, pp. 345-62.

Reid, S.D. (1981), “The decision-maker and the export entry and expansion decision”, Journal ofInternational Business Studies, Vol. 12, pp. 101-22.

Reid, S. (1982), “The impact of size on export behaviour in small firms”, in Czinkota, M.R. andTesar, G. (Eds), Export Management: An International Context, Praeger, New York, NY.

Reid, S. (1986), “Export channel choice and export performance: a contingency approach”, inTan, C., Lazer, W. and Kirpalani, V. (Eds), Emerging International Strategic Frontiers,American Marketing Association, Singapore, pp. 260-4.

Reuber, A.R. and Fischer, E. (1997), “The influence of the management team’s internationalexperience on the internationalisation behaviours of SMEs”, Journal of InternationalBusiness Studies, Vol. 28 No. 4, pp. 807-25.

Robinson, T. and Clarke-Hill, C. (1990), “Directional growth by European retailers”, InternationalJournal of Retail & Distribution Management, Vol. 25 No. 8, pp. 262-8.

Rundh, B. (2001), “International market development: new patterns in SMEs international marketbehaviour?”, Market Intelligence and Planning, Vol. 19 No. 5, pp. 319-29.

Rutashobya, L. and Jaensson, J-E. (2004), “Small firms’ internationalisation for development inTanzania: exploring the network phenomenon”, International Journal of Social Economics,Vol. 31 Nos 1/2, pp. 159-72.

SME retailers

51

Sanghavi, N. and Pavlin, I. (1996), “Franchising as a SME development issue: the caseof transitional economies”, paper presented at ICSB 41st World Conference, Stockholm,17-19 June, available at: www.sbaer.uca.edu/research/1996/ICSB

Simpson, E.M. and Thorpe, D. (1996), “A conceptual model of strategic considerations forinternational retail expansion”, in Akehurst, G. and Alexander, N. (Eds), TheInternationalisation of Retailing, Frank Cass, London.

Smith, A. and Sparks, L. (1997), “Retailing and small shops”, Institute for Retail Studies,University of Stirling, Stirling.

Spannagel, R. (1993), “Small and medium enterprises in retailing in Germany – strong in the westand weak in the east”, paper presented at Seventh International Conference on Research inthe Distributive Trades, University of Stirling, Stirling, pp. 584-90.

Sparks, L. (1995), “Reciprocal retail internationalisation: the Southland Corporation, Ito Yokadoand 7-Eleven convenience stores”, The Service Industries Journal, Vol. 15 No. 4, pp. 57-96.

Stake, R.E. (1994), “Case studies”, in Denzin, N.K. and Lincoln, Y.S. (Eds), Handbook ofQualitative Research, Sage, Newbury Park, CA, pp. 236-47.

Sternquist, B. (1997), “International expansion of US retailers”, International Journal of Retail &Distribution Management, Vol. 25 No. 8, pp. 262-8.

Stevenson, H.H. (1983), “A perspective on entrepreneurship”, Working Paper, 9-384-131, HarvardBusiness School.

Strauss, A.S. and Corbin, J. (1994), “Grounded theory methodology”, in Denzin, N.K. and Lincoln,Y.S. (Eds), Handbook of Qualitative Research, Sage, Newbury Park, CA, pp. 273-85.

Taylor, S.J. and Bogdan, R. (1984), Introduction to Qualitative Research Methods: The Search forMeanings, Wiley, New York, NY.

Teece, D.J., Pisano, G. and Shuen, A. (1997), “Dynamic capabilities and strategic management”,Strategic Management Journal, Vol. 18 No. 7, pp. 509-33.

Terziovski, M. (2003), “The relationship between networking practices and business excellence: astudy of small to medium enterprises (SMEs)”, Measuring Business Excellence, Vol. 7 No. 2,pp. 78-92.

Tordjman, A. (1994), “European retailing: convergence, differences and perspectives”,International Journal of Retail & Distribution Management, Vol. 22 No. 5, pp. 3-19.

Treadgold, D. (1989), “Retail internationalisation: 1992 in context”, in Bendall, A. (Ed.), Retailingto 1992: Key Factors for Retailers, Longman Group, Harlow, pp. 8-17.

Treadgold, A.D. (1990), “The developing internationalisation of retailing”, International Journalof Retail & Distribution Management, Vol. 18 No. 2, pp. 4-11.

Vatne, E. (1995), “Local resource mobilisation and internationalisation strategies in small andmedium-sized enterprises”, Environment and Planning, Vol. 27, pp. 63-80.

Vida, I. (2000), “An empirical inquiry into international expansion of US retailers”, InternationalMarketing Review, Vol. 17 Nos 4/5, pp. 454-75.

Vida, I., Reardon, J. and Fairhurst, A. (2000), “Determinants of international retail involvement:the case of large US retail chains”, Journal of International Marketing, Vol. 8 No. 4,pp. 37-60.

Welch, L.S. and Luostarinen, R. (1988), “Internationalisation: evolution of a concept”, Journal ofGeneral Management, Vol. 2, pp. 34-55.

Wernerfelt, B. (1995), “The resource-based view of the firm: ten years after”, StrategicManagement Journal, Vol. 16 No. 3, pp. 171-4.

IMR23,1

52

Westhead, P., Wright, M. and Ucbasaran, D. (2001), “The internationalisation of new and smallfirms: a resource-based view”, Journal of Business Venturing, Vol. 16, pp. 333-58.

Williams, D. (1991), “Differential firm advantages and retailer internationalisation”, InternationalJournal of Retail & Distribution Management, Vol. 19 No. 4, pp. 3-12.

Williams, D. (1992a), “Motives for retailer internationalisation: their impact, structure andimplications”, Journal of Marketing Management, Vol. 8, pp. 269-85.

Williams, D. (1992b), “Retailer internationalisation: an empirical enquiry”, European Journal ofMarketing, Vol. 26 Nos 8/9, pp. 8-24.

Wolff, J.A. and Pett, T.L. (2000), “Internationalisation of small firms: an examination of exportcompetitive patterns, firm size and export performance”, Journal of Small BusinessManagement, Vol. 38 No. 2, pp. 34-47.

Yin, R.K. (1994), Case Study Research: Design and Methods, 2nd ed., Sage, Newbury Park, CA.

Yip, G.S., Biscarri, J.G. and Monti, J.A. (2000), “The role of the internationalisation process in theperformance of newly internationalising firms”, Journal of International Marketing, Vol. 8No. 3, pp. 10-35.

Further reading

Burghausen, M. and Fan, Y. (2002), “Corporate branding in the retail sector: a pilot study”,Corporate Communications: An International Journal, Vol. 7 No. 2, pp. 92-9.

Jeffreys, J.B. (1968), “Large retail firms in Europe: their characteristics, relative importance, andfuture development”, European Journal of Marketing, Vol. 2, pp. 268-72.

Moen, O. (1999), “The relationship between firm size, competitive advantages and exportperformance revisited”, International Small Business Journal, Vol. 18 No. 1, pp. 53-72.

Moore, C. (1997), “La Sans Frontieres: the internationalisation of fashion retailing”, Journal ofFashion Marketing and Logistics, Vol. 10 No. 2, pp. 66-84.

Waldman, C. (1978), Strategies of International Mass Retailers, Praeger, New York, NY.

SME retailers

53

To purchase reprints of this article please e-mail: reprints@emeraldinsight.comOr visit our web site for further details: www.emeraldinsight.com/reprints