Internationalization strategy through market entry mode: A study of the restaurant business

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Abstract

The low level of internationalization of Indonesian restaurants reflects the many internal obstacles, such as weak motivation of business actors, limited competence of human resources (HR), market access, and capital. This study aims to formulate an internationalization strategy for Indonesian restaurants through a market entry mode approach based on the Uppsala and eclectic models, and supported by the principle of collaborative governance (CG). This study uses soft system methodology (SSM) to understand the complex and unstructured human activity system (Checkland, 2000). The Uppsala model explains that the internationalization process is gradual and based on the accumulation of knowledge and increased market commitment (Johanson & Vahlne, 1977), while the eclectic model is used to analyze ownership, location, and internalization factors in determining the entry mode. The results of the study indicate that increasing the motivation and competence of HR, strengthening business networks, and cross-sector collaboration are key strategies. The government and business associations play a strategic role in providing information, facilitating training, and opening access to capital. In conclusion, an effective internationalization strategy must involve business actors, the government, and associations synergistically. These findings provide theoretical and practical contributions to the development of internationalization strategies for the service sector, especially restaurants, in developing countries such as Indonesia.

Keywords: Internationalization, Strategic Management, Market Entry Model, Uppsala Model, Eclectic Paradigm, Strategic Collaboration in Governance

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: D22, F23, M1, M16

Received: 16.02.2025
Revised: 04.06.2025; 10.11.2025
Accepted: 02.12.2025
Published online: 05.12.2025

How to cite this paper: Herlitah. (2025). Internationalization strategy through market entry mode: A study of the restaurant business. Corporate and Business Strategy Review, 6(4), 209–221. https://doi.org/10.22495/cbsrv6i4art19