An investigation into changing retail trends and their impact on retail firms’ internationalization: Evidence from Saudi Arabia market

Almedawed, F (2026) An investigation into changing retail trends and their impact on retail firms’ internationalization: Evidence from Saudi Arabia market. Doctoral thesis, Liverpool John Moores University.

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Abstract

Chief executives and management teams of major retail firms, along with those from other industries, acknowledge that globalization poses their greatest current challenge. They are acutely aware that crafting strategies for international expansion and choosing the right countries for growth has become increasingly complex. While some organizations stick to conventional strategies characterized by standardized approaches to entering new markets, others have begun to implement a few localized adjustments. As a result, many multinational corporations struggle to create effective strategies, particularly when it comes to emerging markets.

The Saudi Arabian market, in particular, presents significant challenges for entry because of gaps in specialized intermediaries, regulatory structures, and mechanisms for contract enforcement— this collection of issues is known as "institutional voids" and hinders effective corporate strategy implementation. This research employs a multiple case study approach to explore the shifting dynamics within the Saudi market, focusing on changing trends, related opportunities and challenges, and how foreign retail companies leverage opportunities while managing risks in their market entry strategies. The analysis draws on key findings from established models of retail internationalization and other internationalization theories, including Institutional and Transaction Cost theories.

The findings of this study indicate that both internal and external elements influence the entry strategies selected by foreign companies. These factors include distinctive branding, international experience, the reputation of products or companies, business size and resource allocation, operational costs, market relationships, as well as practices within the company, demographics, wealth levels in the market, proximity to retail hubs, and the broader regulatory, legal, political, and economic landscapes of the Saudi Arabian market. Operational costs and relationships within market networks are closely tied to the transaction cost perspective. Moreover, institutional theory's formal and informal classifications include the regulatory, legal, political, and economic systems relevant to the Saudi market, alongside distinctive brand ideas, global experience, product or company reputation, the size of firms, their commitment of market resources, as well as organizational practices, demographic factors such as market wealth, and proximity to retail markets.

The study offers multiple suggestions, advocating that international retail firms provide their subsidiaries in Saudi Arabia with more decision-making freedom and better access to networks. This approach is likely to enhance their ability to learn from the foreign market and achieve innovation benefits derived from valuable knowledge and information. Additionally, it is recommended that companies gain a comprehensive understanding of the different entry modes available and ensure that these modes are well-aligned with their corporate strategies. The Saudi government is also called upon to improve various institutional frameworks to encourage foreign direct investment (FDI) within the retail sector of the economy.

Item Type:	Thesis (Doctoral)
Uncontrolled Keywords:	Foreign retailing; Internationalization; Entry strategies; Developing market
Subjects:	H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HF Commerce > HF5001 Business > HF5410 Marketing. Distribution of Products
Divisions:	Liverpool Business School
Date of acceptance:	4 June 2026
Date of first compliant Open Access:	10 July 2026
Date Deposited:	10 Jul 2026 13:34
Last Modified:	10 Jul 2026 13:36
DOI or ID number:	10.24377/LJMU.t.00028933
Supervisors:	Analogbei, M, Bai, H and Kostopoulos, I
URI:	https://researchonline.ljmu.ac.uk/id/eprint/28933

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