The Strategic Role of Investment Banks in the Retailer Internationalisation Process: Is This Venture Marketing?

M Palmer, Barry Quinn

Research output: Contribution to journalArticlepeer-review

Abstract

In recent years the scale and scope of retailer internationalisation activity has grown markedly, mainly through increasing levels of cross-border merger and acquisition activity. This has been particularly prevalent among companies operating in the food retail sector. During this time, and within the context of increased merger and acquisition activity in international markets, the financial institutions have taken an increasingly prominent role in the retail internationalisation process. Explores the nature of the financial institutions’ role in the retailer internationalisation process and, specifically, the extent to which the financial institutions actually inhibit and/or promote retail international activity. A key purpose of this study is to examine some of the drivers and inhibitors of the retailer internationalisation process. Reports the findings from 30 in-depth interviews with food retail analysts of the leading investment banks in the City of London. The findings from this study should help to provide further insights into the nature of the retailer internationalisation process.
Original languageEnglish
Pages (from-to)1391-1408
JournalEuropean Journal of Marketing
Volume37
Issue number10
DOIs
Publication statusPublished - 2003

Bibliographical note

Reference text: Alexander, N. (1990), “Retailers and international markets: motives for expansion”, International
Marketing Review, Vol. 7 No. 4, pp. 75-85.
Alexander, N. (1995), “UK retail expansion in North America and Europe, a strategic dilemma”,
Journal of Retailing and Consumer Services, Vol. 2 No. 2, pp. 75-81.
Alexander, N. (1997), International Retailing, Blackwell, Oxford.
Alexander, N. and Myers, H. (2000), “The retail internationalisation process”, International
Marketing Review, Vol. 17 No. 4/5, pp. 334-53.
Anderson, R.C., Bates, T.W., Bizjak, J.M. and Lemmon, M.L. (2000), “Corporate governance and
firm diversification”, Financial Management, Vol. 29 No. 1, pp. 5-23.
Burt, S. (1991), “Trends in the internationalisation of grocery retailing: the European experience”,
The International Review of Retail, Distribution and Consumer Research, Vol. 1 No. 4,
pp. 487-515.
Clarke, I. and Rimmer, P. (1997), “The anatomy of retail internationalisation: Daimaru’s decision
to invest in Melbourne, Australia”, The Service Industries Journal, Vol. 17 No. 3, pp. 361-82.
Cotter, J. and Hutchinson, R.W. (1999), “The impact of accounting reporting techniques on
earnings enhancement in the UK retailing sector”, The International Review of Retail,
Distribution and Consumer Research, Vol. 9 No. 2, pp. 147-62.
Cotterill, R.W. (1993), “Food retailing: mergers, leveraged buyouts and performance”, in Duetsch,
L. (Ed.), Industry Studies, Prentice-Hall, Englewood Cliffs, NJ, pp. 157-81.
Denis, D.J. (1994), “Organisational form and the consequences of highly leveraged transactions:
Kroger’s recapitalisation and Safeway’s LBO”, Journal of Financial Economics, Vol. 36,
pp. 193-224.
Dobbs, R.F.C. and Koller, T.M. (1998), “The expectations treadmill”, The McKinsey Quarterly,
Vol. 1 No. 3, pp. 32-44.
Doherty, A.M. (1999), “Explaining international retailers’ market entry mode strategy:
internalisation theory, agency theory and the importance of information asymmetry”, The
International Review of Retail, Distribution and Consumer Research, Vol. 9 No. 4,
pp. 379-402.
Dunning, J. (1981), International Production and the Multinational Enterprise, Allen & Unwin,
London.
Dunning, J. (1988), “The eclectic paradigm of international production: a restatement and some
possible extensions”, Journal of International Business Studies, Vol. 19 No. 1, pp. 1-31.
Francis, J. and Philbrick, D. (1993), “Analysts’ decisions as products of a multitask environment”,
Journal of Accounting Research, Vol. 31, pp. 216-30.
Goldman Sachs (2000), Food Retail, Goldman Sachs, New York, NY, pp. 1-80.
Greenberg, H. (1998), “When analysts really analyzed”, Fortune, 21 December, pp. 258-9.
(The) Grocer (1996), “Acquisitions is way forward in Europe”, The Grocer, Vol. 218 No. 7275,
pp. 21-8.
Hoskisson, R.E., Johnson, R.A. and Moesel, D.D. (1994), “Corporate divestiture intensity in
restructuring firms: effects of governance, strategy, and performance”, Academy of
Management Journal, Vol. 37 No. 5, pp. 1207-52.
HSBC (1997), European Retailing: The Value of Competitive Advantage, HSBC James Capel
European Research, pp. 1-219.
EJM
37,10
1406
Hubbard, N. and Kelly, J. (1999), “Mergers changing the face of retailing”, European Retail Digest,
No. 24, pp. 5-7.
Johnson, G. and Scholes, K. (1993), Exploring Corporate Strategy: Text and Cases, Prentice-Hall,
Hemel Hempstead.
Johnson, R.A. and Greening, D.W. (1999), “The effects of corporate governance and institutional
ownership types on corporate social performance”, Academy of Management Journal,
Vol. 42 No. 5, pp. 564-76.
Lincoln, Y.S. and Guba, E.G. (1985), Naturalistic Inquiry, Sage Publications, Newbury Park, CA.
(The) McKinsey Quarterly (2000), The McKinsey Quarterly, No. 2, p. 68.
Merrill Lynch (1999), Leaders Emerging: Trends in Retail Consolidation, Merrill Lynch & Co.,
New York, NY, pp. 1-18.
Myers, H. and Alexander, N. (1996), “European food retailers’ evaluation of global markets”,
International Journal of Retail & Distribution Management, Vol. 24 No. 6, pp. 34-43.
Pellegrini, L. (1991), “The internationalization of retailing and 1992 Europe”, Journal of
Marketing Channels, Vol. 1 No. 2, pp. 3-27.
Quinn, B. (1999a), “The temporal context of UK retailers’ motives for international expansion”,
The Service Industries Journal, Vol. 19 No. 2, pp. 101-16.
Quinn, B. (1999b), “Control and support in an international franchise network”, International
Marketing Review, Vol. 16 No. 4/5, pp. 345-63.
Salmon, W. and Tordjman, A. (1989), “The internationalisation of retailing”, International
Journal of Retailing, Vol. 4 No. 2, pp. 3-16.
Sanders, G. and Carpenter, M.A. (1998), “Internationalization and firm governance: the roles of
CEO compensation, top team composition, and board structure”, Academy of Management
Journal, Vol. 41 No. 2, pp. 158-79.
Shleifer, A. and Vishny, R.W. (1997), “A survey of corporate governance”, The Journal of
Finance, Vol. 52 No. 2, pp. 737-83.
Sternquist, B. (1997), “International expansion of US retailers”, International Journal of Retail &
Distribution Management, Vol. 25 No. 8, pp. 262-8.
Taylor, S.J. and Bogdan, R. (1984), Introduction to Qualitative Research Methods: The Search for
Meanings, John Wiley, New York, NY.
Vida, I. and Fairhurst, A. (1998), “International expansion of retail firms: a theoretical approach
for future investigations”, Journal of Retailing and Consumer Services, Vol. 5 No. 3,
pp. 143-51.
Williams, D.E. (1992), “Motives for retailer internationalisation: their impact, structure and
implications”, Journal of Marketing Management, Vol. 8, pp. 269-85.
Wrigley, N. (1997a), “British food retail capital in the USA – part 1: Sainsbury and the Shaw’s
experience”, International Journal of Retail & Distribution Management, Vol. 25 No. 1,
pp. 7-21.
Wrigley, N. (1997b), “British food retail capital in the USA – part 2: Sainsbury and the Shaw’s
experience”, International Journal of Retail & Distribution Management, Vol. 25 No. 2,
pp. 48-58.
Wrigley, N. (1998a), “European retail giants and the post-LBO reconfiguration of US food
retailing”, The International Review of Retail, Distribution and Consumer Research, Vol. 8
No. 2, pp. 127-45.
Is this venture
marketing?
1407
Wrigley, N. (1998b), “Corporate finance, leveraged restructuring and the economic landscape: the
LBO wave in US food retailing”, in Martin, R. (Ed.), Money and the Space Economy, John
Wiley & Sons, Chichester.
Wrigley, N. (2000a), “The globalization of retail capital: themes from economic geography”, in
Clark, G., Gertler, M. and Feldman, M. (Eds), Handbook of Economic Geography, Oxford
University Press, London.
Wrigley, N. (2000b), “Strategic market behaviour in the internationalisation of food retailing -
interpreting the third wave of Sainsbury’s US diversification”, European Journal of
Marketing, Vol. 34 No. 8, pp. 891-919.
Yin, R.K. (1994), Case Study Research: Design and Methods, Sage, London.
EJM
37,10
1408

Fingerprint

Dive into the research topics of 'The Strategic Role of Investment Banks in the Retailer Internationalisation Process: Is This Venture Marketing?'. Together they form a unique fingerprint.

Cite this