Going International? Important Factors Executives Should Consider!

Keywords

Globalization, Restaurants, United States of America

Abstract

Purpose– The purpose of the paper is to explore the likely main driving forces behind the internationalization process for publicly traded restaurant firms in the USA, and to offer restaurant executives insights for successful expansions into the international arena. Design/methodology/approach– The paper uses data from publicly‐traded restaurant firms in the USA that have made the decision to expand internationally. The data spans both sides of the decision, i.e. before the international expansion and right after. Findings– This paper finds that firms that are growing rapidly, have lots of debt, or are in an economy that is growing rapidly prefer to expand in the domestic market. In contrast, firms that have achieved a high level of market penetration tend to expand in the international markets. Practical implications– The paper recommends the following key factors to be considered before a decision is made to expand internationally: size, leverage, penetration, and annual market excess return. Originality/value– This paper attempts to provide, for the first time, systematic financial evidence about the factors that executives should consider during their strategic decision making process of firm internationalization.

Publication Date

11-1-2007

Original Citation

Nan Hua, Arun Upneja, (2007) "Going international? Important factors executives should consider!", International Journal of Contemporary Hospitality Management, Vol. 19 Iss: 7, pp.537 - 545

Number of Pages

537-545

Document Type

Paper

Language

English

Source Title

International Journal of Contemporary Hospitality Management

Volume

19

Issue

7

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

This document is currently not available for download.

View via DOI


Share

COinS