INTERNATIONALIZATION STRATEGY THROUGH MARKET ENTRY MODE: A STUDY OF THE RESTAURANT BUSINESS

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Herlitah

2025 Corporate and Business Strategy Review Vol. 6 Issue 4 Article Cited by 0 SDG 8SDG 16 Quartile

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. © 2025 The Author.

Affiliations

Faculty of Economics and Business, Universitas Negeri Jakarta, Jakarta, Indonesia

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