Transaction Costs, Internationalisation and Logistics: The Case of European Food Retailing

Abstract

This paper provides an insight into the European food multiples' strategies during the internationalisation process. More specifically, the paper tries to link transaction-costs theory with the food multiples' logistics strategies at the national and international levels, and identifies a number of factors that may have an effect on the retailers' logistics strategies during their international expansion. Additionally, organisational modes available to retailers concerning the externalise (contract-out)/internalise (own-account) dilemma for their logistics operations are also examined, as retailers face this dilemma at the international level as well. Finally, a framework is provided that positions European food multiples according to the externalise/internalise dilemma for logistics operations in the course of international expansion.

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