Abstract
The article addresses the need for empirical work on retailer internationalisation. It reviews the literature, explores the process of international development, and investigates the way in which decisions are made at this level. The article uses the ‘decision effectiveness’ concept to examine the internationalisation of Japanese department store groups between 1950 and 1995, and focuses on Daimaru's decision to invest in a new outlet in Melbourne. On the basis of interviews with company executives in Australia and Japan associated with the decision, the article concludes by emphasising how the perspective gained thereby may help in the understanding of the interrelatedness of the main components of internationalisation.

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