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The Strathprints institutional repository is a digital archive of University of Strathclyde's Open Access research outputs. Strathprints provides access to thousands of Open Access research papers by University of Strathclyde researchers, including by researchers from the Department of Computer & Information Sciences involved in mathematically structured programming, similarity and metric search, computer security, software systems, combinatronics and digital health.

The Department also includes the iSchool Research Group, which performs leading research into socio-technical phenomena and topics such as information retrieval and information seeking behaviour.

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Explaining international retailers' market entry mode strategy : internalization theory, agency theory and the importance of information asymmetry

Doherty, Anne Marie (1999) Explaining international retailers' market entry mode strategy : internalization theory, agency theory and the importance of information asymmetry. International Review of Retail, Distribution and Consumer Research, 9 (4). pp. 379-402. ISSN 0959-3969

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Abstract

Research on the internationalization of retailing has focused on descriptive and empirical studies centring on issues such as motivations for retail internationalization and individual company experiences of the internationalization process. One particular aspect of the retail internationalization process that has remained relatively underresearched, and consequently under theorized, is market entry mode strategy. Furthermore, with a few notable exceptions, potentially interesting research from the economics of international production and corporate finance literatures has been virtually ignored in the international retailing domain. This paper represents an initial step in rectifying these deficiencies by exploring some of the issues associated with the economics-based internalization and agency theories, in the context of international retailers' market entry mode strategy. By combining market transaction costs (associated with internalization theory), together with information and monitoring costs (associated with agency theory), and thus highlighting the interlinking issue of information asymmetry, a more coherent basis is established for analysing international retailers' entry mode choice decision.