DIFFERENTIAL FIRM ADVANTAGES AND RETAILER INTERNATIONALISATION

Retailer internationalisation (RI) is lacking in detailed empirical research. What is available ignores the critical factors important to the success of retailers operating internationally. Consequently, this exploratory study attempts to unearth various factors, labelled Differential Firm Advantages (DFA), vital to the smooth performance and competitive differentiation of international retail operations. The nature and attributes of DFAs, with specific reference to retailing, are reviewed and subsequent survey results reveal certain DFAs can be regarded as prerequisites for retailers operating in international markets. The underlying structure of differential advantages is also examined, giving the study a further unique dimension. Performance in international markets appears to depend upon the balanced integration of various compatible DFAs. Indeed past experiences show certain UK‐based international retailers have had problems in achieving this equilibrium.