Article

Internationalization of retail operations

Taylor & Francis
Journal of Marketing Management
Authors:
  • Universities of Stirling and Edinburgh
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Abstract

International retail operations may be defined as the operation, by a firm or alliance, of shops, or other forms of retail distribution, in more than one country. Such operations have an extensive history. Motives for retailers to operate internationally are considered. Theoretical explanations have not been well developed but a potentially useful framework exists with the transaction cost paradigm. International operations may be achieved within several different organizational structures with some firms adopting different approaches for different markets. The empirical evidence of international retail activity lacks a sound survey base but some tentative generalities are drawn.

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... Os estudos sobre internacionalização varejista (IV) começaram a surgir na década de 1990, marcando o início de uma prolífica fase de desenvolvimento do conhecimento e consolidação da pesquisa que hoje conta com corpo teórico próprio . Enquanto que parte do conhecimento sobre IV é oriunda dos conceitos de negócios internacionais, fortemente alicerçados na atividade manufatureira, outra parte é proveniente de pesquisas específicas para a atividade varejista, cujas especificidades demandam, segundo alguns autores, o desenvolvimento de corpo teórico próprio (Alexander & Myers, 2000;Dawson, 1994Dawson, , 2000. 1 Contato do autor: renatamariagomes@uol.com.br A pesquisa em IV passou por intensa fase de desenvolvimento nos últimos 20 anos, dominada por pesquisas quantitativas (Swoboda, Zentes, & Elsner, 2009), em linha com o observado no campo de estudos em negócios internacionais (Welch, Piekkari, Plakoyiannaki, & Paavilainen-Mäntymäki, 2011). ...
... A literatura de negócios internacionais vem buscando explicar os fenômenos envolvidos nos processos de internacionalização das firmas, com claro enfoque em manufatura (Dawson, 1994). Entretanto, para alguns autores, as bases teóricas da área de negócios internacionais não ofereciam modelos adequados para compreensão das estratégias de IV -tais como abrangência geográfica, modo de entrada e padrões de adaptação aos países de destino -e, por isso basearam seus estudos em achados empíricos e com fundamentação teórica oriunda dos estudos sobre o varejo (Alexander, 1990;Salmon & Tordjman, 1989;Treadgold, 1991). ...
... Entretanto, para alguns autores, as bases teóricas da área de negócios internacionais não ofereciam modelos adequados para compreensão das estratégias de IV -tais como abrangência geográfica, modo de entrada e padrões de adaptação aos países de destino -e, por isso basearam seus estudos em achados empíricos e com fundamentação teórica oriunda dos estudos sobre o varejo (Alexander, 1990;Salmon & Tordjman, 1989;Treadgold, 1991). Dawson (1994) alertou que o campo de negócios internacionais foi desenvolvido com base em firmas manufatureiras e que adaptações de conceitos vindos da manufatura para o varejo deveriam ser feitas com certo cuidado, pois há vários fatores que diferenciam estas atividades, tais como as economias de escala, grau de dispersão geográfico, custos de saída, velocidade de retorno do investimento e importância dos fornecedores. Apesar desse alerta, alguns autores recorreram às teorias de negócios internacionais prevalentes -tanto as de abordagem econômica, quanto as de abordagem comportamental (cf. ...
Article
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A pesquisa em internacionalização varejista (IV) passou por intensa fase de desenvolvimento desde a década de 1990, dominada por pesquisas de natureza quantitativa e com base na experiência de varejistas de grandes formatos, como supermercados. Entretanto, a internacionalização do setor varejista evoluiu em bases que os modelos existentes não têm sido capazes de explicar, gerando uma demanda por pesquisas com métodos mais profundos de conhecimento. O resultado foi um notório aumento de artigos publicados desde o início da década de 2000 baseados pesquisas de natureza exploratória e qualitativa, como estudos de caso. Este artigo pretende responder identificar quais foram as contribuições no conhecimento sobre IV oriundas de estudos de caso. Com base na literatura disponível, 42 artigos foram selecionados, sumariados e discutidos com vistas à identificação das contribuições mais relevantes para diferentes tipos varejistas, bem como para assuntos em IV ainda pouco pesquisados.
... Some researchers have discussed the internationalization strategies followed by retailers within a few decades. Dawson [7] and Goldman [8] indicated that the failure of international expansion plans is often format related. Some researchers have focused their investigations on the internationalization strategy patterns. ...
... Although Dunning's three factors approach developed for manufacturing firms, the factor of ownership-specific advantages may have relevance to the study of the retailing sector [7], [21]. Ownership-ship specific means the firm has an innovatory product, process or business method which gives to the firm competitive advantage in the market. ...
... However, adaptation is necessary, but once retailers adapt the local environment, it would lose their competitive strength of their formats. For instance, Goldman [7] found that retailers facing Chinese retailers operating the same formats felt adaptation to Chinese conditions would dilute the competitive strength of their formats. Thus, how to adapt the local markets and build a sustainable competitive advantage is a key issue in the international operations. ...
... There has been growing interest in the internationalisation of retailers (Alexander & Myers, 2000;Swoboda, Zentes, & Elsner, 2009;Treadgold, 1988;Treadgold, 1990) as a result of the particular characteristics of retail internationalisation that are seen as limiting the applicability of insights generated on the basis of the internationalisation of manufacturing firms (Burt & Carralero-Encinas, 2000;Dawson, 1994). Key among these characteristics is the simultaneity of production and consumption of retailers' services (Boddewyn, Halbrich, & Perry, 1986;Bouquet, Hebert, & Delios, 2004). ...
... Key among these characteristics is the simultaneity of production and consumption of retailers' services (Boddewyn, Halbrich, & Perry, 1986;Bouquet, Hebert, & Delios, 2004). As a result, unlike manufacturers, retailers cannot export their services and have to be physically located where their customers are, requiring retailers to establish store networks in, transfer retail formats to, and thus embed themselves in a multitude of potentially highly different environments (Burt, Johansson, & Dawson, 2016, Coe & Lee, 2013Currah & Wrigley, 2004; Dawson & Mukoyama, 2014a; Dawson, 1994;Huang & Sternquist, 2007;Wood et al., 2016). Their direct interaction with the end customers also increases retailers' exposure to the differences in customer needs and preferences across countries (Bianchi & Ostale, 2006;Burt, Johansson, & Thelander, 2010, Burt, Johansson, & Thelander, 2011Evans & Bridson, 2005). ...
... Prior research into retail internationalisation has underlined the role that retailers' resources and competencies play (e.g., Bianchi, 2009;Currah & Wrigley, 2004;Dawson & Mukoyama, 2014b;Lowe & Wrigley, 2010;Picot-Coupey et al., 2014;Vida, Reardon, & Fairhurst, 2000). As a consequence prior research into retail internationalisation has drawn on the resourcebased view (RBV) (Bianchi, 2009;Cao & Dupuis, 2009;Elsner, 2014;Mohr & Batsakis, 2014), while other theories explaining the internationalisation of firms, mainly developed to explain the internationalisation of manufacturing firms, have been argued to be of limited use in explaining retail internationalisation (Dawson, 1994). ...
Article
Despite the fact that many firms simultaneously expand into multiple new markets, we know very little about why firms choose this type of international expansion instead of sequentially entering new markets. Drawing on the resource-based view (RBV) we argue that in order to engage in simultaneous international expansion firms have to be able to draw on intangible assets, be financially strong, and have international experience that will enable them to reduce and/or shoulder the strains on managerial resources, time compression diseconomies and costs of simultaneously entering multiple new overseas markets. We further expect the strength of these associations to be moderated by the cultural distance between a firm’s home country and newly entered countries. Our analysis of the international expansion of the sales operations of 102 retailers over the period 2003-2012, during which these retailers sequentially or simultaneously entered into a total 836 overseas markets, largely supports our hypotheses. Our study underlines the usefulness of the RBV for understanding simultaneous international expansion as an important phenomenon that has received only scant scholarly attention to date.
... Retail internationalization (RI) is not a recent phenomenon (Alexander, 2012;Leknes and Carr, 2004), but research in the field still suffers from fragmentation Burt and Sparks, 2002;Dawson, 2000;Swoboda et al., 2009). Such undesirable state of affairs stems from the absence of an agreed upon definition of what constitutes RI (Dawson, 1994;Sternquist, 1997) and the still unclear identification of the main categories of international retailers and how they behave Moore and Burt, 2007). Extant literature has concentrated on the internationalization of mass merchandise retailers -in particular, supermarkets and hypermarkets chains such as Walmart and Tesco -and has oftentimes inadvertently taken this category as representative of the population of international retailers. ...
... The nature of the retailing activity, when compared to manufacturing, has raised questions about what is in fact internationalized (Dawson, 1994). Some scholars point to the transference of the retail concept, i.e., such as retail know-how, innovation, offer, formula, identity, format and brands (Burt et al., 2005;Dawson, 2000). ...
... In the marketing literature, the following aspects or activities have been argued to be transferrable across markets: store image, assortment depth and breadth, and store environment (Ailawadi and Keller, 2004;Lindquist, 1974;Mazursky and Jacoby, 1986). Ultimately, store image can measure the impact of retail as a brand (Burt and Sparks, 2002;Dawson, 1994Dawson, , 2000 in consumers' patronage. ...
Article
There is no agreement upon the set of dimensions to be used to categorize distinct types of retailers and, consequently, it is difficult to disentangle the particularities of the internationalization trajectories of specific types of retailers. In this article, we propose a taxonomy of the firms involved in international retailing and discuss the differences in the internationalization patterns of the retail business across the types of retailers. The data was collected from an extensive review of the literature on retail internationalization and from several secondary sources, such as a report of a research institute and retailers’ websites, as well as from visits to stores. The proposed taxonomy identifies three distinct types: (i) traditional retailers, (e.g., Walmart, JCPenney), which distribute a varied array of third parties’ brands, (ii) specialized branded retailers (e.g., Zara, H&M), which are exclusive distributors of their own brands, and (iii) direct branded retailers (e.g., Adidas, Louis Vuitton), firms that are brand manufacturers’ that are also distributors of their brands, but in a non-exclusive manner, as such brands are also distributed through other retailers. This contingent view of retail internationalization helps overcome two week points this field has: (i) the pervasive research practice of employing mixed samples of distinct types of retailers; and (ii) the inadvertent focus on traditional retailers, such as supermarkets and department stores, as if they were representative of the population of international retailers as a whole, which contrasts with the noticeable increase in the international retail distribution of consumer products through monobranded stores. Keywords: retail internationalization, retailer types, taxonomy.
... In the retail industry, the physical store is essentially a tangible product created from an industrialised production process, extending from store construction to supply chain management, in which intangible knowledge assets play a critical role. Due to the inherently open nature of the store, the retail format is constantly at risk of appropriation and imitation by competitors in international consumer markets (Dawson, 1994;Doherty, 1999). Consequently, and to draw upon Goffrnan's (1956; see also Crang, 1994;Gregson et al., 2002) insights, the process-based knowledge assets deployed in the 'back region' are of considerable strategic significance in the retail sector. ...
... The historic absence of legal mechanisms protecting retail formats and managerial knowledge in the international retailing sector, compared to the patent system in the manufacturing sector (Dawson, 1994;Stemquist, 1997), highlights the influence of intangible assets upon the choice of retail market entry mechanisms in a global context. "Retailers copy ideas and management systems from those in other countries, there generally being little secrecy about and no copyright on many aspects of the operation of a shop" (Dawson, 1994: 267). ...
Thesis
p>The globalisation of retailing remains a profoundly neglected topic in the mainstream debates of economic geography and the social sciences more broadly. In this thesis, I begin to redress this imbalance by conceptualising the geographies of organisational learning and innovation within a newly emerging breed of retail transnational corporations (TNCs). This approach is aligned with the 'new economic geography', in which there is a greater cognisance of the role of culture, knowledge and learning in the regulation of firms, and in turn, the importance of these 'soft assets' to the realisation of competitive advantage. I argue that the ability to learn and innovate is now the principal determinant of success in the globalising retail industry. The thesis critically analyses and theoretically contextualises the 'soft architecture' to globalising retail, while also identifying important lines of future enquiry. As such, I do not provide a detailed ground-level investigation of the retail TNCs. However, case-study evidence is incorporated into the thesis to enrich and thicken the conceptual observations. This evidence has been drawn from an extensive period of fieldwork, which involved a combination of interview- and conference-based research. In chapter 2,1 discuss the methodological issues involved in researching the retail TNCs. In particular, I emphasise the critical importance of the equity analyst as a 'gatekeeper' to wider networks of knowledge exchange about the retail TNCs. The remainder of the thesis is organised in four sections. Chapter 3 conceptualises the distribution-based TNC and shows that a defining characteristic of the retail TNCs is that they are embedded, to an unusual extent relative to production-based TNCs, in local cultures and geographies of consumption. This has important implications for our understanding of the geography of innovation within the retail TNCs, which, I suggest, remains inherently store-based. Chapter 4 continues this line of enquiry by exploring the nature of 'knowledge management' inside the retail TNCs. Here, I consider the mechanisms that are being used to extract, blend and transfer tacit knowledge across the transnational space of the firm to develop an adaptive and innovative portfolio of retail formats and merchandising strategies. The focus of the thesis then switches to a new technological innovation, revolving around e-commerce and and Internet-based distribution. managerial challenges that this innovation poses to the retail TNCs. Chapter 6 summarises the key findings of each chapter and highlights the contribution of the thesis to contemporary academic debates. 5 considers the organisational Chapter</p
... However, for the past two decades, retailers in mature markets have expanded their operations into overseas markets as a means for strategic growth. Dawson [16] defined international retail operations as "operations, by a single firm or an alliance, of shops or other forms of retail distribution in more than one country". Dawson [14] emphasize that large retailers became the key participants of international trade in the past decade. ...
... The top ten countries (range 1-10) were the countries that are suggested as the most attractive markets, i.e. "markets on the radar screen". The other ten countries (range [11][12][13][14][15][16][17][18][19][20] were the countries that may be taken into account when making decisions about entering this market. Last ten countries (21)(22)(23)(24)(25)(26)(27)(28)(29)(30) are the countries that should be avoided and it is not advised to make investment to those markets. ...
Article
One of the dominant economic trends in transition countries of Central and Southeastern Europe (SEE) is the internationalization of retailing. The countries in this region represent a receptive market for large retailers from developed countries. The aim of this paper is to fill the existing gap in the contemporary literature regarding retail internationalization in particular geographical area. Therefore, firstly the paper explains the very concept and motives of retail internationalization. Subsequently, based on the analysis of secondary data on the world's largest retailers, it gives an insight into the current state of retail internationalization in Croatia, Bosnia and Herzegovina, Serbia and Slovenia, and discusses the dynamics of internationalization of retailing from 2004 until today. Finally, some indications of problems related to future retail development in Central and Southeastern Europe are explained.
... RI is traditionally known as the gradual process of growth by which a brand increases its presence in international markets (Akehurst and Alexander, 1995;Hallsworth, 1992). Previous studies have addressed varying levels of internationalization such as multinational, global, and international (e.g., Dawson, 1994;Salmon and Tordjman, 1989;Sternquist, 1997). Multinational refers to retailers that have presence in more than one country but not a wide breadth of countries. ...
... RI literature first peaked in the 1980s with a rapid succession of contributions in the 1990s. In both decades, the focus surrounded economic and competitive advantages of RI with key literature by Kacker (1985), Cavusgil, (1980, Dunning (1988), Rossen and Reid (1987), Treadgold (1988), and Salmon and Tordjman (1989) in the 1980s and key works by Alexander (1990), Williams (1992aWilliams ( , 1992b, Akehurst and Alexander (1995), Brown and Burt (1992), Dawson (1994), and Sternquist (1997) in the 1990s. As a part of the exploration into RI, researchers examined the motivations for internationalization. Psychology researchers were investigating cultural impacts and cultural adaptation necessary for successful RI, most notably shaped by Hofstede (2001), and influenced by Dupuis and Prime (1996), Johnson et al. (2006), Thomas et al. (2015), and Gollnhofer and Turkina (2015). ...
Article
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ABSTRACT This paper finalizes the current research in Social Media Marketing domain, closely examining the topic of utilizing social media for advertising purposes in software industry field and aims to identify the mechanisms behind consumers’ desire to purchase software products and services and the methods suitable for advertising of these products and services on social media channels. Keywords: social media advertising, software, startups, Software-as-a-Product, Software-as-a-Service
... RI is traditionally known as the gradual process of growth by which a brand increases its presence in international markets (Akehurst and Alexander, 1995;Hallsworth, 1992). Previous studies have addressed varying levels of internationalization such as multinational, global, and international (e.g., Dawson, 1994;Salmon and Tordjman, 1989;Sternquist, 1997). Multinational refers to retailers that have presence in more than one country but not a wide breadth of countries. ...
... RI literature first peaked in the 1980s with a rapid succession of contributions in the 1990s. In both decades, the focus surrounded economic and competitive advantages of RI with key literature by Kacker (1985), Cavusgil, (1980), Dunning (1988), Rossen and Reid (1987), Treadgold (1988), and Salmon and Tordjman (1989) in the 1980s and key works by Alexander (1990), Williams (1992aWilliams ( , 1992b, Akehurst and Alexander (1995), Brown and Burt (1992), Dawson (1994), and Sternquist (1997) in the 1990s. As a part of the exploration into RI, researchers examined the motivations for internationalization. Psychology researchers were investigating cultural impacts and cultural adaptation necessary for successful RI, most notably shaped by Hofstede (2001), and influenced by Dupuis and Prime (1996), Johnson et al. (2006), Thomas et al. (2015), and Gollnhofer and Turkina (2015). ...
Article
Full-text available
ISSN 2327-9087 (Journal of Advancements in Economics, Finance & Accounting)
... KACKER (1985) hat die Unterschiede zwischen US-amerikanischem und europäischem Einzelhandel herausgearbeitet. Eine besondere Aufmerksamkeit haben i11 de11 verga11gene11 30 Jahren die Motive der Internationalisieru11g erfahren, zu denen ALEXANDER (1990,1997), WILLIAMS (1992), PELLEGRINI (1994), DAWSON (1994) und VIDA (2000) gearbeitet habe11. Nach einem anfänglichen Fokus auf limitierende Faktoren im Heimatmarkt gelten heute die strategischen Wachstumsmöglichkeiten in ausländischen Märkten als zentrale Motivatio11. ...
... Mit Markteintrittsstrategien haben sich u.a. TREADGOLD / DAVIES (1988) und DAWSON (1994) beschäftigt. Mit der Frage nach Marktadaption oder Standardisierung beschäfti-gen sich SALMON / TORDJMAN (1989), SAMIIE / ROTH (1992), EVANS / MAVONDO (2002), DUPUIS / PRIME (1996), Zou / CAVUSGIL (2002), RYANS et al. (2003) sowie EVANS / BRIDSON (2005). ...
Book
Die Internationalisierung im Einzelhandel ist eine vergleichsweise junge Entwicklung, die in den vergangenen beiden Dekaden stark vorangeschritten ist. Dabei haben viele Unternehmen die Erfahrung machen müssen, die Grundlage ihres im Heimatland erlangten Wettbewerbsvorteils zwar in einige Märkte erfolgreich transferieren zu können, in andere Märkte jedoch nicht. Worin liegen die Ursachen hierfür? Trotz einer zunehmenden Zahl von Studien zur Internationalisierung im Einzelhandel gibt es immer noch ein mangelndes Verständnis dafür, unter welchen Bedingungen Unternehmen im Ausland erfolgreich sind, respektive wann sie scheitern. Einen theoretischen Rahmen zur Analyse der relevanten Erfolgsdeterminanten liefert die Institutionentheorie, die das Verhältnis zwischen Unternehmen und Gesellschaft betrachtet und gerade auch für interkulturelle Fragestellungen einen interessanten Untersuchungsansatz darstellt. Vor diesem Hintergrund wird in der vorliegenden Arbeit die US-amerikanische Expansion des Discounters Aldi analysiert. Aldi bietet sich für eine solche Fallstudie an, da der Discounter sein an den deutschen Markt angepasstes Erfolgskonzept Ende der 1970er Jahre weitestgehend unverändert in die USA transferiert hat - in eine institutionelle Umwelt, die sich deutlich von der deutschen unterscheidet. Wie erfolgreich kann Aldi in dieser Umwelt agieren?
... We focus on the retail industry in one given host country for three reasons: First, as we discussed previously, the studies of business model innovation in the international context need to concentrate on a small number of industry segments and countries in order to control industry/segments or country-specific differences (Landau et al., 2016;Schmid & Kotulla, 2011). Second, in contrast to the international manufacturing firms, the international retailers are more embedded into the local business environment and their practices encompass a broader range of activities as they seek to develop new ways for interacting with the local customers and the local suppliers (Currah & Wrigley, 2004;Dawson, 1994). ...
... Retail firms' internationalization in contrast to that of manufacturing firms has its own specific characteristics (Currah & Wrigley, 2004;Dawson, 1994;Sparks, 1995). In general, international retailers are more embedded in the local context than production-based international firms (Cao & Pederzoli, 2013;Wrigley et al., 2005). ...
Article
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Although research into the business model has received increasing attention, few studies have so far been conducted on business model innovation in an international context. The purpose of the study is to identify different patterns of business model innovation which enables international retailers to rebuild their core business logic in new host countries. On the basis of comparing and contrasting the business model changes of 15 international retailers from various home countries to one single host country (China), our study provides an indepth understanding of business model innovation in the context of international business. By looking at the firms’ capabilities in rebuilding their core logic in the setting of a host country, we reveal six routes of retail business model innovation. Utilizing the lens of organizational learning theory and internationalization, we identify three patterns of resource deployment by international companies in the process of developing business model innovations. Our study, therefore, provides insights and guidance for multinational companies in general, international retailers in particular, as for how to successfully adapt their business model from home country to host country.
... There have also been attempts to 'import' IB theory, based predominantly on FDI and the manufacturing sector, in an attempt to explain trends becoming evident within a global retail context. However, geographer-turned-management scholar, John Dawson (1994) urged caution in this regard. He noted that cross-border retail expansion is notably distinct from FDI in manufacturing in a number of aspects. ...
... In common with IB, economic geography was relatively slow to interrogate the nature of the internationalisation of retail distribution. With the exception of the work of Dawson (1994) noted above, targeted at a business studies/management audience, it was not until Wrigley's (2000a) contribution which highlighted the 'myopic neglect of distribution systems and industries' in the burgeoning literature on economic globalization' that the scale, characteristics and growth of the leading retail MNCs began to engage the attention of economic geographers. That contribution was important in several ways. ...
... Levy and Weitz 2009), although it has been researched much less than, for example, market development and retail internationalization (e.g. Dawson 1994;Alexander and Myers 2000;Burt et al. 2002). Based on an empirical investigation of consumer perceptions of retail format development in the IKEA store in Hamburg-Altona, Germany, the purpose of the present study is to explore format development and its influence on store image and clientele. ...
... Reynolds et al. 2007) and much less researched than, for example, internationalization (e.g. Dawson 1994;Alexander and Myers 2000;Burt et al. 2002). Yet, format is, as retail internationalization, core to retail strategy (e.g. ...
Article
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A changed technological landscape and radically changed consumer behavior are forcing retailers to rethink their business models, retail formats, and retail offerings. The global retailer IKEA is no exception in this development. Recently, the traditional IKEA format, which has been so successfully duplicated across the world over the years, has been complemented with other formats that are new and innovative for IKEA. Based on an empirical investigation of consumer perceptions of the store format development in Hamburg-Altona, Germany, the present study explores format development and its influence on store image and clientele, considering also the purpose of visiting IKEA and how this seems to have changed with the introduction of the new format. We also discuss the core aspects of the IKEA formats, and the fact that although some things have changed, others have stayed the same to preserve the IKEA image.
... Retail firms typically pursue horizontal international expansion, i.e., market-seeking foreign expansion within their existing business ( Moatti et al. 2015 ) and thus seek to identify promising foreign markets, accurately assess local customer demand, and effectively leverage their firms' capabilities abroad ( Cao and Li 2018 ;Mohr, Batsakis, and Stone 2018 ;Morgan, Katsikeas, and Appiah-Adu 1998 ). Most commonly, retailers (e.g., Walmart, Inditex (Zara), IKEA) transfer their business model ( Gielens and Dekimpe 2001 ;Grewal and Dharwadkar 2002 ) across a wide range of dissimilar markets ( Dawson 1994 ;Swoboda and Elsner 2013 ). However, retail firms face significant challenges when entering foreign markets that are rooted in the firms' liability of foreignness ( Shi et al. 2018 ). ...
... Internationalization activity. International fashion SMEs are those that operate in more than one country (Dawson, 1994;Rienda et al., 2021). According to the information provided by the FAME and SABI databases, a dummy variable was created. ...
Article
Purpose In recent years, consumers have been demanding for sustainable practices, even more so after COVID-19, so fashion companies need to intensify their commitment to corporate social responsibility (CSR) practices. However, although the sector is characterized by a strong brand–customer orientation and high online activity, little attention has been paid to the role of brand image and the management of social media (SM) strategies. The purpose of this study was to develop an integrative model that includes the drivers of CSR in fashion small- and medium-sized enterprises (SMEs) and their relationship with business performance. The researchers also analyzed the country and level of internationalization effects of these companies. Design/methodology/approach With a sample of 212 fashion SMEs from Spain and the UK, two of the biggest European fashion producers and consumers, a variance-based structural equation modeling (partial least squares structural equation modeling) technique was carried out to test the model proposed. Findings This study demonstrated that branding and SM strategies are drivers of CSR practices in fashion SMEs. It also confirmed the positive CSR–performance relationship, the moderating country effect and the mediating role of internationalization in this relationship. Originality/value The study contributes to the literature on CSR drivers in SMEs and their relationship with performance by combining different perspectives. The results can be used to encourage fashion SMEs' commitment to environmental sustainability practices and internationalization, as this can contribute to improving their performance.
... In the context of retailers, internationalisation can be viewed as the extent to which retailers operate outside their home country. International retail operations have been defined as the operation, by a firm or alliance, of shops, or other forms of retail distribution, in more than one country (Dawson, 1994). This has been measured by different metrics in the literature, for instance, by the value or volume of total sales or profits generated internationally relative to total sales/volumes, or by the growth in the number of stores and the number of countries that a retailer operates in (or geographical spread) (Sullivan, 1994;Ietto-Gillies, 1998;Coe and Hess, 2005;Wrigley and Lowe, 2010;Coe and Wrigley, 2018). ...
... Les enseignes qui cantonnent le développement de leur réseau aux frontières de leur marché domestique semblent aujourd'hui de plus en plus nombreuses et les opérations internationales constituent alors un axe central de leur stratégie. L'exploitation de réseaux physiques de points de vente en dehors du marché domestique constitue donc une dimension majeure du phénomène de distribution internationale (Dawson, 1994), à la fois pour des raisons défensives de saturation des marchés domestiques et pour des motivations offensives de conquête de nouvelles sources de croissance (Alexander, 1997;Alexander & Doherty, 2010). ...
Article
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The purpose of the present work is to contribute to the limited literature on the subject of firm internationalization using a cognitive approach. This paper focuses on the manager's attitude towards internationalization as a determinant of his intention to internationalize. It also focuses on perceived risks and perceived benefits as mediating forces in the manager's mental model. As attitude initiates the cognitive process leading to the intention, risk favors or disfavors this intention. In this sense, the theory of planned behavior (Ajzen, 1991) would explain the proposed conceptual model. Résumé : L'utilité du présent travail s'intègre dans le peu de recherches sur l'internationalisation des firmes selon une approche cognitive. En effet, cet article s'intéresse à l'attitude du dirigeant vis-à-vis l'international comme déterminant de son intention de s'internationaliser. Il s'agit aussi de mettre l'accent sur les risques perçus et les avantages perçus comme des forces médiatrices dans le modèle mental du dirigeant. Alors que l'attitude initie le processus cognitif menant à l'intention, le risque favorise ou défavorise cette intention. En ce sens, la théorie du comportement planifié (Ajzen, 1991) semble expliquer le modèle conceptuel proposé.
... Finally, a comment on the relevance of the findings of this article for internationalizing companies, especially retailers. Studies on retail internationalization have always emphasized the importance of carefully adjusting to local conditions, and have highlighted this as a major potential difference when compared with other industries (Alexander & Myers, 2000;Dawson, 1994;Wrigley et al., 2005). This article has shown the very complex level of engagement that stakeholders have come to demand from retailers in light of Japan's societal challenges. ...
Article
In Japan, convenience store operators have hailed their stores as “social infrastructure.” Policy makers have acknowledged this role, striving to involve the private sector in the process of strengthening communities, especially in light of Japan’s greatest societal challenge: its rapidly aging population. Convenience store companies have also earned such recognition through their responses to natural disasters. This is, however, somewhat paradoxical, since their just-in-time business model is in principle highly vulnerable to such events. This article introduces the case of the Japanese convenience store to demonstrate how responding to grand societal challenges can—beyond demonstrating corporate social responsibility or striving for legitimacy—become an essential part of corporate business models. It argues that such an approach creates the need for higher-level capabilities and increases the number of involved stakeholders, and concludes that this might throw previously successful business models off balance.
... Retail internationalisation has been a major focus in the scholarly treatment of retailer strategy over the last 20-25 years (e.g., Alexander and Doherty, 2010;Burt et al. 2008;Burt, Johansson, and Thelander 2007, 2010, 2011a, 2011bChan, Finnegan, and Sternquist 2011;Dawson 1994Dawson , 2001Dawson , 2007Dawson and Mukoyama 2014;Jonsson and Foss 2011;Lowe and Wrigley 2010;Pellegrini 1991;Salmon and Tordjman 1989;Swoboda and Elsner 2013;Swoboda, Berg, and Dabija 2014;Yu and Ramanathan 2012). In this research two features are evident. ...
Article
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The paper reports an interview-based study that considers market driving and market-driven activities within the disaggregated components of the business model. The empirical study is of IKEA in China over a 10 year period. Market orientation is considered as a position on a continuum rather than as binary positions. The components of the business model are developed from the Osterwalder and Pigneur structure. Over the study period, the balance between driven and driving orientations within components of the business model changed in multiple ways. This article’s contribution is the illustration of disaggregating the market orientations of driven or driving activities and associating these with the particular components of the business model and so studying what happens to the driven-driving balance over time. The approach has wider applicability for attempts to understand the dynamics of international retailing.
... In this sense they are a factor in national economic growth (Sunanto 2013, p. 29) and the development of new distribution systems. On the whole, it can be said that modern international retail market entries, either as first or second movers or late-comers with major investments, have radically changed the rules of the game in developing markets (Dawson 1994(Dawson , 2003(Dawson , 2007Goldman 2001;Coe/Wrigley 2007;Suryadarma et al. 2007, Kaliappan et al. 2008, Sunanto 2013 Although modern retail, which offers more branded and labelled products than traditional retailers, is seen as a key driver of change in emerging markets, the sheer numbers of traditional vendors of both fresh and processed foods cement their dominance in certain local markets. ...
Technical Report
This study analyses the process of food retailing internationalisation in developing economies. The first section explores general internationalisation trends, conditions for market penetration and spatial patterns of expansion. The discussion takes both elements into consideration – the market entry of global retail chains from the North and the development of local companies in the South. The second section investigates socio-economic impacts on the market system structure and its dynamics. To identify these impacts on the various actor groups, the analysis follows the commodity chain from production to distribution and retailing, and finally to the consumer.
... franchising (e.g., Carney et al. 1991), supply-chain (e.g., Chandra & Fischer, 1994) and international retail (e.g., Dawson, 1994) contexts. The research also drew on a number of rigorous research methods and rich sets of data including experiments, quantitative analysis, and interviews. ...
Article
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The retail sector has gone through major changes over the past three decades. These changes have been made possible by advances in information and communications technology that have enabled new business models, communication tools, technologies, and supply-chain practices to emerge and shape the behavior of actors across the retail value chain. For example, from its initial incarnation as only a separate, albeit small, channel in the retail and marketing mix, e-commerce is now a critical part of a firm's multi-and omnichannel strategy. In this paper, we synthesize current knowledge drawn from academic retail literature and discuss potential directions for future research. This study contributes to research by developing five research propositions, based on our literature review, to guide researchers to better grasp the technological and digital developments across the retail sector over the next decade or so.
... In this study we distinguished between firms that have or have not an international activity, in the year 2018, with the information that the FAME database provided. We consider international fashion SMEs as those that operate in more than one country (Dawson, 1994). Then, we created a dummy variable with the value of 1, when the firm exports or has subsidiaries abroad, and 0 if the firm's activity is limited to their home country. ...
Article
Purpose This research investigates the role that having a trademark and a social media presence play in the development of international activities as well as their influence on performance for small and medium-sized enterprises (SMEs) operating within the fashion sector of the United Kingdom and Ireland. Design/methodology/approach Quantitative analysis was carried out by integrating information from several data sources. The hypotheses proposed in the authors’ research model are tested on a sample of 102 SMEs, applying bivariate analysis and variance-based structural equation modelling (partial least squares). Findings Based on the authors’ empirical evidence, the fashion SMEs could improve their performance through two important marketing tools: registered trademark and social media. On the one hand, SMEs with a registered trademark are more present in the international markets, and it also implies higher performance. On the other hand, there is no significant relationship between SMEs with social media and a presence in international markets. Originality/value The aim of this paper is to investigate the effect of trademark and social media participation on firms which varies depending on what managers of fashion-related SME companies want to prioritize. Hence, these two marketing tools could be useful for managers to decide on what resources to invest, to register a trademark or to be present in social media, subject to their firms' strategy and objectives.
... Internacionalizáciu maloobchodu definuje Dawson (1994) ako "proces, keď firmy či aliancie, obchody alebo iné formy maloobchodnej distribúcie pôsobia vo viac ako jednej krajine". V maloobchode na Slovensku ide o novodobý jav prenikania obchodných nadnárodných reťazcov do prostredia slovenského maloobchodu. ...
Book
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Shopping behavior is a sociological phenomenon defined as behavior by which consumers show their attitudes in finding, purchasing, using, and evaluating goods and services from which they expect to meet their needs. Generally, changes in shopping behavior produce three attributes: need, offer, and resources which are strongly influenced by socioeconomic conditions of households. As a part of shopping decision-making process, consumers go through the buying process during which they evaluate and compare the available alternatives offered and also decide for some of them. Impacts, to which the consumer is exposed during the decision-making process, can influence the buying decision process by varying intensity and strength and also with different results. The presented monograph deals with the geographical aspects of shopping behavior of the Nitra City inhabitants. Its content consists of five basic chapters. The first chapter deals with theoretical and methodological bases of the issue. The next chapter is devoted to characteristics of the Nitra City. In the third chapter, it analyzes issues of the retail network structure, its spatial and functional changes at the level of urban parts in 2004, 2008 and 2014. The fourth main chapter analyzes shopping behavior in terms of respondents' characteristics, selection and evaluation of shopping places, attractiveness of retail amenity in two housing urban parts of Chrenová and Klokočina. Models of shopping behavior using statistical methods are characterized in the fifth chapter. When processing this issue, we used several methods of geographical research - method of explanatory description, comparative method (enabled us to mutually compare statistical data and indicators at various regional levels), systemic method (applied for the structure of the work and its logical layout as well as in the sequence from the analysis of knowledge to their synthesis) and statistical methods which results were necessary to calculate the key demographic, retail (area parameter m²/1000 inhabitants) and statistical (chi-square test for creating a contingency table) indicators. Databases and the results were processed in Microsoft Excel and ArcView 3.2 and ArcGIS 10.2. The basis of the work, however, was in field research of individual retail stores. Questionnaire surveys in urban parts of the Nitra City were implemented through a guided conversation. The development of retail network of the Nitra City is significantly affected by the following factors: changes in ownership, purchasing power of population, arrival of supranational chains, availability, synergy effect, development of new forms of selling, self-government. In the City of Nitra during the years 2004-2014, there were significant changes in the retail network. Nitra is a city in which the first hypermarket Tesco in Slovakia was opened in 1999. The newly built shopping centers (OC) such as OC Centro (2006), ZOC Max (2006), OC Galéria (2008) and OC Mlyny (2009) can be characterized as developmental poles of retail with concentrated supply and a wide range of products. All three surveys in 2004, 2008 and 2014 were dominated by women and employed respondents with secondary education. It seems that women are much more tolerant and welcome the new forms of retail. We summarized the following important results. The most popular shopping center of the Nitra population is OC Mlyny in the city center which was favored by 58% of the positively responding to this question and 43.5% of total respondents. This most visited center of the "edge-of-center" type is located in a very busy site of the city with pedestrian accessibility to the bus and railway stations and lots of stops of public transport lines. Therefore, we assume that it is precisely for these benefits why respondents ranked it first in choosing the place of purchase. The spatially largest shopping cadence of foodstuff was assigned to hypermarket Tesco which is located on the edge of the Old Town and it is a "magnet" for OC Galéria (7 urban parts with 17 457 inhabitants), but the strongest gravity center was hypermarket Kaufland for 20 106 inhabitants of Klokočina urban part. A radical stance in relation to shopping centers (not visited or do not buy in them) in 2014 was conveyed by 43 respondents (out of 705 surveyed). Comparing the results of a 6-year period from 2008 to 2014, there was a surprising significant increase in opposition to the choice of shopping centers as to the place of purchase which represents 20% in case of Nitra City. The most important factors in 2014 that influenced the respondents in choosing the shopping center was its location (68.1%), price of goods (14.3%) and atmosphere of stores (13.9%). Opening hours (4%) and especially advertising (0.20%) appeared to be only secondary. While shopping in shopping centers in 2008, a car was used by almost 70% of the respondents. In 2014 it was 87% of respondents. While the younger and middle generation prefer shopping in large-scale stores, respondents aged 60 and over do not have this convention. Interestingly, the age group 45 year olds and over do not shop by using the Internet. Customers aged 60 and over use mostly smaller retail stores. 53% of respondents stated that they shop several times a week while most often shopping days were Friday and Saturday and least often were Sundays. 3% of respondents shop only once or twice a month and in this case they prefer the store Metro Cash&Carry in the urban part of Kynek. The attractiveness of the retail amenity is best described by the selection of shopping place that reflects also personal factors (reasons) which include e.g. spatial availability of stores, sales culture, offer of sales concepts, marketing activities of sellers as well as real household income its lifestyle. These domains are signs of shopping behavior which is greatly influenced by society in which the consumer uses goods and services. Place selection is influenced also by personal attitudes that affect the attractiveness of the shopping center. From the many factors, the selection of food stores is dominated by price and quality of goods. Offer on the leaflets and their distribution do not radically affect the selection of a place and its attractiveness for purchase, but they influence subjective decision of respondents. Based on the results and long-term research on shopping behavior in the Nitra City, it is noteworthy that according to an objective assessment such as the use of cars (confirmed by 66% of respondents), preferring shopping centers (even for purchases of consumer goods, clothing and footwear 87%) and behavioral surveys in 2004 and 2008, the Nitra population behaved as modern. On the other hand, the subjective self-assessment by respondents in 2014 did not confirm the modern, but rather traditional orientation for shopping. In the model of shopping behavior of respondents in 2014, the largest group was formed by loyal shopping type (25% of respondents). The second place was taken by mobile shopping type of respondents (pragmatists) whose characteristics was most fitting for 21% of the respondents while 17% of respondents ranked among the thrifty type. Cautious (conservatives) were represented by 12% of respondents and modifiable shoppers accounted for 10%. Demanding shoppers accounted for 10% and the last group of undemanding type (phlegmatics) was represented by only 5% of respondents. Based on the prevailing types of shopping behavior, the Nitra population can be included to the traditional type. Traditional shopping orientation was preferred by 59% of respondents while modern shopping orientation by 41% of respondents. Answers of respondents assessed by selected characteristics (gender, age and household income) confirmed some expectations when traditional character of shopping was confirmed in respondents of higher age groups and modernity among the youngest up to 20 year-olds (60%). Surprisingly, the groups of 20-29 year-olds resulted in traditional saving way of shopping, which may be related to socio-economic status of these inhabitants at the beginning of their independence from their parents, with the establishment of families, etc. Unexpected results were in the group of 40 year-olds, which in the case of both genders, showed identity with modern mobile shopping type (pragmatist), which was, on the contrary, expected in younger age groups. The results analyzed by gender confirmed that women were traditional when shopping while men were more modern. However, women were more responsible when shopping since according to gender differentiation, there was no undemanding (phlegmatic) shopping type in the age groups. On the other hand, in male part it was identified in two youngest age groups - up to 20 year-olds with income € 401-800 and 20-29 years olds with income up to € 400. We attribute it to the age of the respondents and reckless approach to shopping. Overall, it can be concluded that the signs of saving, prudence and rational decisionmaking increased in the Nitra City. Loyal customers are also focused on the social aspects of the purchase which indicates long-term consequences of the economic crisis since 2008, but also increase in awareness of the need to support local producers.
... We have 270 banner divestments of supermarkets, neighbourhood stores and hypermarkets, representing slightly over a third of the divestments in our sample. In contrast, some scholars contend that non-food retailers have more flexibility in entering and exiting international markets, particularly with smaller formats (Dawson, 1994;Doherty, 2000). We found that a single non-food format, specialty retailers (194 banners), representing almost 32% of the divestments, had the highest number of chains divested in our sample. ...
Article
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Purpose – The purpose of this paper is to provide a robust examination of the factors that accelerate/decelerate the divestment timing of retail banners in international markets. Design/methodology/approach – The sample represents 3,235 foreign market banner operations of 132 international retailers across 144 countries using an accelerated failure time (AFT) parametric survival modelling technique. Findings – Banner divestment is accelerated by both weak financial performance and smaller size.Furthermore, there is a synergistic negative detriment to the combination of both factors on divestment. Banner divestment is decelerated by deploying the corporation’s dominant format in the home country. Moreover, inadequately performing dominant banners are allowed more time to turn around their operations than subpar non-dominant banners. Concurrently, when host country markets are growing, poorly performing dominant banners are given more time to improve performance. When home market performance weakens, smaller, poorly performing banner divestment is accelerated.
... In particular, the internationalization towards emerging markets may rely on different modes (Meyer, Estrin, Bhaumik, & Peng, 2009) to exploit the opportunities that are related to the new middle class. Among them, one way to capture middle-class demand in the emerging markets (Cavusgil & Buckley, 2016) is by expanding retailing operations (Dawson, 1994). Investing in retail sales points is particularly burdensome for manufacturing enterprises; it can consume a great deal of resources and hence may represent an important aspect of their internationalization strategy. ...
Article
This paper looks at the relations between the rise of emerging markets and the store openings of marketers from advanced countries. It focuses on the retail operations of Italian fashion brands that have opened sales points in order to gain entry into foreign markets. The paper presents an analysis of an expressly developed database of 2,141 store openings by 311 Italian fashion brands in 322 cities in 82 countries over the period 2006–2015. The analysis highlights a shift of brands stores openings from the developed countries toward emerging markets and discusses the impact of such trend and its relations with the heterogeneity of the firms and markets involved. Some propositions are then formulated regarding the consequences for brand marketers in the developed nations of this ongoing shift of wealth towards the emerging countries.
... The paper is based on the cases of three internationalizing fashion firms. In particular, while much attention has been given to the internationalization of retail companies (Dawson, 1994;Alexander and Myers, 2000;Alexander and Doherty, 2009), research on manufacturing firms that adopt the opening of retail stores abroad as an internationalization strategy is still limited (Guercini and Runfola, 2016). The empirical research, in particular in the Italian fashion system, carried on by the authors and other researchers in the field, has shown that the opening of stores falls deeper and deeper into the practices of both retailers and manufacturing firms. ...
Article
Purpose The purpose of this paper is to address the topic of business network dynamics and identify different relational paths, as forms of change in business relationships and related types of network change. The paper contributes to the literature on business network dynamics by providing an understanding of relational paths in the context of firms’ internationalization and shading light on different forms of change in business relationships and types of network change. The paper also contributes to the understanding of liabilities in internationalization that has to do with business networks, namely the liability of outsidership. Design/methodology/approach This paper is based on qualitative research following the multiple case study research approach. The authors propose three cases of internationalizing firms in the fashion industry that follows relational paths corresponding to different forms of change in business relationships that imply different types of network change. Findings Changes to a firm’s business network may be addressed through relational paths, namely creation of new business relationships (activation), maintenance of existing relationships (integration) and ending of existing relationships (substitution). These relational paths can be considered forms of incremental (integration) and radical (activation and substitution) change in business relationships and lead to different types of network change for business network dynamics that coexist and influence each other within the same firm. Originality/value This paper contributes to a better understanding of business network dynamics by showing how firms change their business relationships following different relational paths as the best way to respond to the challenges and new opportunities offered especially by international markets. The present paper has relevant managerial implications since coping with change in business relationships is perhaps one of the most critical and difficult tasks for management, even more critical if compared to the increasing complexity of doing business internationally and the liabilities that firms face in their internationalization process, especially the liability of outsidership.
... • Set focus on the retail modernization which resulted in big changes to the distribution structure of Thailand in recent years • Set focus on "hypermarket" stores among modern retailers • Analyze those impact to local residents' consumption behaviors and the local structure of commerce • Chose Ubon Ratchathani as the sample of regional city in Thailand 2. Former studies about internationalization of hypermarkets • Dawson [1994], Davis=Yahagi [2000], Dawson et al [2003], Spencer and Berdegue [2007] etc. • Typical feature of Hypermarkets -Large scale self-service super stores which have selling area more than 10,000 square meters -Rational distribution system -High ratio of PB (Private Brand) ...
... There is no single definition of internationalisation, but in the context of retailers, internationalisation can be viewed as the extent to which retailers operate outside their home country. International retail operations have been defined as the operation by a firm or alliance of shops, or other forms of retail distribution, in more than one country (Dawson 1994). This has been measured by different metrics in the literature, for instance, by the value of sales or profits generated internationally relative to total sales, or by the growth in the number of stores and the number of countries that a retailer operates in (Stopford and Dunning 1983;Sullivan 1994;Coe and Hess 2005;Wrigley and Lowe 2010;Coe and Wrigley 2018;Ietto-Gillies 1998). ...
Article
The retail space has seen significant changes in post-apartheid business. Spurred by the end of apartheid urban laws, rising urbanisation and increased per capita income, large South African retailers, especially supermarkets, have increased their footprint, diversified their formats and started targeting low-income segments of the population. The large chains have made substantial investments in distribution and procurement systems and in retail space in shopping malls to realise economies of scale and scope. They have also grown in southern Africa, shaping markets across countries. This paper assesses the drivers of these changes and the extent to which substantial market power in retail lies with the main groups. It evaluates the ways in which market power has been exerted and the impact supermarket growth has had on the competitive landscape including on independent rivals. The implications on suppliers, as supermarkets are increasingly important routes to market for processed food and household consumable products, are evaluated, in addition to the impact of buyer power. The paper explores the implications for regulation, competition policy and industrial policy.
... Johanson et Vahlne (1990) describe the internationalization mechanism based on the previous model. Dawson (1994) explains the need for the theoretical explanations of existing frameworks in the internationalization of operations-related cost paradigm not having so many differences between some companies and others; this work analyses the specific retail case of the internationalization of operations. Eriksson et al. (1997) analyse the relationship between lack of knowledge on markets, businesses and foreign institutions and the subsequent internationalization process cost. ...
Article
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In this paper, we identify the key parameters to consider in a decision model on internationalization of operations. In order to propose these parameters, the GLOBOPE framework was adopted as the basis of this work. This framework contemplates the three commonest challenges of global operations configuration for industrial manufacturing companies in an internationalization process, which are: new facility implementation (NFI); global suppliers’ network development (GSND); multisite production network configuration. A set of suitable parameters is herein provided for NFI and GSND in the analysis stage from strategic, tactical and operational decision levels. These parameters could be used in the future as a basis for the development of quantitative tools for decision making on the internationalization of operations.
... The internationalization of retailing is considered an ongoing process (Whitehead, 1992;Dawson, 1994;Vida & Fairhurst, 1998;Alexander & Myers, 2000;Dawson & Mukoyama, 2006), in which retailers have rich opportunities to learn how to expand successfully their operations in foreign markets (Palmer, 2004;Palmer & Quinn, 2007). The selection of foreign market is influenced by the similarity of country characteristics as well as growth opportunities. ...
... 0 lojas do Carrefour, em 6 países: França, Espanha, Itália, Bélgica, Portugal e Grécia. Sendo o Carrefour a rede varejista presente no maior número de países, apresenta-se o Quadro 7, com alguns dados a respeito de seu processo de internacionalização – o que corrobora o fato de a rede ser detentora de um formato inovador, adaptável a vários países.Dawson (1994);Fonte: Elaboração do autor. ...
Conference Paper
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Autoria: Roberto Minadeo RESUMO: A inovação na área de serviços é mais difícil do que no setor industrial. Em 2006, a Wal-Mart no Brasil ultrapassou o Carrefour, assumindo a segunda colocação no ranking do varejo alimentar do país. A Wal-Mart, pioneira no uso da TI e em vários aspectos da logística no varejo, ingressara no Brasil em 1995; e, após o aprendizado inicial, empreendeu um programa de crescimento pela abertura de novas lojas, e pela aquisição de outras redes. Enquanto isso, o Carrefour, que ingressara vinte anos antes e que atingira a liderança em 1990, apenas pela abertura de hipermercados, formato no qual fora pioneiro, iniciou um processo de ingresso no varejo de vizinhança, adquirindo diversas redes locais, porém, com resultados duvidosos. Em 2007, o Carrefour adquiriu a rede Atacadão, retomando a liderança. O artigo analisa as inovações, as estratégias de entrada e de crescimento das duas empresas, e a aquisição do Atacadão. 1. INTRODUÇÃO Burlamarqui e Proença (2003) tratam do tema cada vez mais vital representado pela inovação, remetendo a Schumpeter, que afirmara estar o processo de mutação industrial revolucionando a economia a partir de dentro, criando uma nova situação e destruindo permanentemente a antiga. Assim, todos os elementos da estratégia empresarial apenas adquirem um significado verdadeiro sob o pano de fundo dessa «destruição criadora». Sobre a estratégia de crescimento externo, Pinto Júnior e Iootty (2005) apontam que as empresas podem: i) acessar novos mercados ou aumentar o poder de mercado de forma rápida; ii) obter ganhos de eficiência produtiva seja do ponto de vista estático, ou dinâmico; iii) diversificar suas atividades produtivas; e iv) alcançar a internacionalização de suas atividades, quando for o caso de uma operação cross-border. Defendendo as alianças empresariais como modo de entrada em novos mercados, Rasmussen (1989) argumenta que as organizações não estariam vinculadas aos riscos dos investimentos iniciais (greenfield investment), pois a parceria levaria em conta certa experiência e know-how dos pares. Gonçalves et al. (1998) afirmam que nas últimas décadas, a economia brasileira sofreu alterações para se adequar a essa nova ordem produtiva e concorrencial. Pode ser destacadas: i) inserção na globalização financeira e produtiva; ii) abertura ao capital estrangeiro no início da década de 90; iii) programas de privatização; iv) reorientação estratégica das empresas; v) aumento dos processos de fusões, aquisições e outras associações empresariais; e vi) aprimoramento na regulação governamental e avanços nos mecanismos e no sistema de governança corporativa. O ranking dos maiores supermercados brasileiros de 2006 fechou com a Wal-Mart na segunda posição, com R12,9bilho~esemreceitas,aˋfrentedoCarrefour,quedetinhaR 12,9 bilhões em receitas, à frente do Carrefour, que detinha R 12,7 bilhões. A Wal-Mart ingressou no Brasil no ano de 1995, ou seja, em apenas onze anos superou o Carrefour, que ingressara em 1975, e que chegara à liderança em 1990. O artigo faz uma análise das inovações de formatos varejistas das duas redes, com a seguinte estrutura: a seção 2 apresenta alguns conceitos relativos à inovação. A seção 3 trata da Metodologia. A seção 4 apresenta a evolução do Carrefour e do Wal-Mart – em geral e no Brasil. A seção 5 traz os Resultados Obtidos. Na seção seguinte, são apresentadas as considerações finais, e as referências encerram o artigo. 2. REFERENCIAL TEÓRICO 2.1 Inovação " A inovação é arriscada. Mas também é arriscado entrar no carro e ir ao supermercado comprar pão. Toda atividade econômica é por definição de alto risco, e defender o passado –
... During the 1990s, scholars in business and management studies developed frameworks related to the retail internationalization process to highlight the specificities of retail companies' ( Dawson 1994;Sternquist 1997) movement toward the internationalization of manufacturing firms, and more specifically toward the eclectic model of 'ownershiplocation-internationalization' developed by Dunning (1988). While this latter model was utilized in numerous works about the co-evolution of firms and markets ( Jones 2001;Cantwell, Dunning, and Lundan 2010;Child, Rodrigues, and Tse 2012), Myers and Alexander (2007) were the first to conceptualize the internationalization of distribution-based firms and to bring forth the idea of co-evolution between market and organization (firms). ...
Article
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Asia has increasingly become the place to sell luxury goods as a result of economic growth. Swiss luxury watch groups have all turned to new Asian markets since the late 1990s, with the help of key intermediaries such as local distributors and retailers. However, facing the verticalization strategies of large groups to improve the control and even to develop in-house retail management, independent distributors have needed to change their business models and offer new kinds of services to access customers. This article gives two examples of local independent distributors’ new strategies to cope with verticalization by large groups. While the first company, The Hour Glass, turned to mono- and multi-brand stores for independent luxury brands in South East Asia, the second one, Hengdeli, specialized in retail by running in-house shops for the market expansion in China of one of its main partners, Swatch Group.
... During the 1990s, scholars in business and management studies developed frameworks related to the retail internationalization process to highlight the specificities of retail companies' ( Dawson 1994;Sternquist 1997) movement toward the internationalization of manufacturing firms, and more specifically toward the eclectic model of 'ownershiplocation-internationalization' developed by Dunning (1988). While this latter model was utilized in numerous works about the co-evolution of firms and markets ( Jones 2001;Cantwell, Dunning, and Lundan 2010;Child, Rodrigues, and Tse 2012), Myers and Alexander (2007) were the first to conceptualize the internationalization of distribution-based firms and to bring forth the idea of co-evolution between market and organization (firms). ...
Article
Full-text available
Asia has increasingly become the place to sell luxury goods as a result of economic growth. Swiss luxury watch groups have all turned to new Asian markets since the late 1990s, with the help of key intermediaries such as local distributors and retailers. However, facing the verticalization strategies of large groups to improve the control and even to develop in-house retail management, independent distributors have needed to change their business models and offer new kinds of services to access customers. This article gives two examples of local independent distributors’ new strategies to cope with verticalization by large groups. While the first company, The Hour Glass, turned to mono- and multi-brand stores for independent luxury brands in South East Asia, the second one, Hengdeli, specialized in retail by running in-house shops for the market expansion in China of one of its main partners, Swatch Group.
Article
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The increasingly competitive environment of retail led to the formation of global groups, prepared for investments in advertising and information technology. These groups, through mergers and acquisitions are consolidating the industry, all over the world, absorbing smaller companies. Besides these large groups have growing expertise in creating their own brands. Thus, these larger players are able to create specific offers, store to store, to its customers. Faced with this situation, several business models are threatened: first, middle or small retail and wholesale their own - because they lessen their chances of growth or potential customers who attend, then: the larger retailers have an increasing proportion of the market; they are supplied directly by the industry, and continue in its consolidation process, absorbing more and more midsize retailers. This paper is a case study of an innovative wholesaler, which began with the creation of a University of Retail. Then he was made a model shop, which came to be adopted by hundreds of small retailers. Finally, we analyze this initiative in light of the Five Forces model of Porter - showing himself to be the correct strategy.
Chapter
In today's business world, consumers looking for convenience and speed are engaging in online and mobile shopping. In the grocery sector, there is growing demand for fast delivery. Getir is a Turkish ultra-fast grocery delivery retailer which operates across nine countries, delivering “happiness” to Turkish, British, Dutch, German, French, Spanish, Italian, Portuguese, and American consumers' doorsteps. Combining cutting-edge technology of its app with excellent distribution strategies, the company is associated with convenience, reliability, and commitment to providing the best possible customer experience. This chapter discusses the internationalization process and marketing strategy of Getir, a developing country company's expansion into developed markets.
Article
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In order to explore the internationalization of Turkish apparel retailers, with this study it is aimed to comparatively analyze the motivations underlying the internationalization of Turkish multi-channel retailers and e-tailers in Turkish apparel industry in terms of internationalization process, management of foreign operations, critical success factors and international e-commerce activities. Holistic multiple case study method was adopted in the research and the cases were determined through purposive sampling. The data gathered by semi-structured interviews, were analyzed with thematic-constructive content analysis method. The findings obtained from the research revealed that multi-channel apparel retailers and e-tailers have gone through different internationalization processes as a result of their internationalization motivations, market entry modes, and the size of their organizational structures due to the business model they have adopted. In addition, the management of operations in foreign markets, success factors in foreign markets were found to be similar. The study contributes to the practitioners as a guide at the point of defining internationalization strategies, managing international operations, using online channels in international markets, identifying the factors that they should prioritize for success in the international markets.
Article
Purpose Identifying the patterns of retail institutional change has piqued the interest of retail academics for nearly a century. The Big Middle hypothesis is one of the most recent and hybridized versions of similar theories. According to it, retailers seeking a dominant position in retailing can migrate into the Big Middle, the largest market segment, by specializing in a large market with a broad product assortment or by focusing on a specific product category and simultaneously catering for multiple segments at the same time. This study provides empirical evidence for the latter proposition by employing fuzzy-set qualitative comparative analysis (fsQCA) on the case of UNIQLO, a Japanese clothing specialist retailing giant. Design/methodology/approach The authors devised a survey to assess (1) consumers' perceptions of UNIQLO's store attributes and (2) their perceived distance between the UNIQLO and potential competitors. The authors used fsQCA procedures to identify multiple confluences of causal conditions that led to a high level of consumer patronage for UNIQLO from various market segments. Findings The findings show that UNIQLO's dominance in the Big Middle stems not only from capturing a sizable homogeneous market but from aggregating multiple heterogeneous market segments with disparities of various types. This finding explains how a specialty store retailer achieves its Big Middle position. Research limitations/implications The findings gleaned from fsQCA are not statistically generalisable. It, therefore, is essential to ensure whether similar phenomena are observed under different spatiotemporal settings. Concerning the scope of the research, this study's finding is pertinent to only one part of the Big Middle hypothesis. Future studies are required to cover other dimensions of the Big Middle, including the generalist retailer's cases of the Big Middle. Practical implications The results of this study may present a valuable tool to deepen retailers' understandings on; (1) the multiple causal recipes of customer patronages to their retail offerings, (2) who the pure fans of their stores are, (3) who their principal rivals are in the mind space of the consumers, and (4) their overall market position upon aiming to realise the Big Middle. It will give retail managers an insight into how to design, implement, and churn an efficient and effective RBM. Originality/value The study's originality is in empirically scrutinizing and elaborating a part of the mechanism of retail change heralded by the Big Middle hypothesis.
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Existing retail internationalization research, which has been theorized for innovative retail internationalization originating in developed countries, is insufficient for explaining the internationalization behavior of retailers originating in emerging countries, which have relatively fewer competitive advantages. Therefore, this study suggests new analytical concepts and future research directions for analyzing the internationalization behavior of retailers from developing countries entering China. This study adopted the value network concept for retailers and proposed the retail value network concept as a retailer-specific commercial transaction network to analyze ethnic Chinese retailers from developing countries. This study also suggests the need for studies on how the ethnic Chinese business network affects the formation of the retail value network as an avenue for future research.
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The purpose of this paper is to explore the role of embeddedness and cooperation networks in the business internationalization process. To achieve the abovementioned purpose, a qualitative methodology was carefully chosen, through which semi-structured interviews were conducted with ten entrepreneurs of the footwear sector in Portugal, as well as with a head of the national footwear business association. In order to process the data obtained by conducting the interviews, content analysis and data coding through the NVivo software were performed. The results suggest that internationalization is essential for companies in the Portuguese footwear sector. In addition to internationalization helping companies to increase their turnover, it allows companies to grow in a more sustainable way. On the other hand, research also allows us to deduce that networks play an important role in the development of the organizations in question, as they facilitate access to various resources indispensable to this growth. Concerning embeddedness, this aspect presents itself as a facet to which special attention should be paid, considering the pre-eminence that respondents attribute to all variables that help to structure this dimension. The conclusions of this study have theoretical and practical implications, which provide empirical evidence of how the internationalization process can influence the activity of Portuguese companies in the footwear sector. In addition, the results contribute to the evolution of existing knowledge about how embeddedness and cooperation networks facilitate the internationalization process.
Article
A substantial amount of time has passed since retailers went overseas. However, even though numerous case studies exist and international process studies have been well researched, there is a lack of empirical consensus. Global retail firms have been exiting the overseas markets for years and have indicated that they experienced difficulties obtaining sufficient profits overseas and would invest more to increase their profit margins in the e-commerce market. Therefore, this research aims to empirically determine the internationalization and business performance of retail firms. To examine the effect of their business achievements, I hypothesize both international and domestic business performance factors as well as the e-commerce activity factor.
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Die Internationalisierung des Einzelhandels stellt keineswegs ein neues Phänomen dar, ist aber in den vergangenen Jahren schnell vorangeschritten. Im Folgenden werden die verschiedenen Facetten und der Umfang des internationalen Einzelhandels, grundlegende strategische Optionen, Methoden und Wege der Marktselektion sowie des Markteintritts erläutert.
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The purpose of this article is to provide a review of scholarly articles that have examined retail internationalization issues. We identify three core areas within RI research: (1) RI drivers and impediments, (2) RI strategy, and (3) RI performance. We also discuss four RI strategy issues that have been examined: (1) RI speed, (2) Foreign market selection, (3) Foreign entry mode, and (4) Strategy employed. Based on the review, we point to multiple areas where RI research is lacking and can contribute to the advancement of the field as well as offer insightful implications for international retail managers.
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En este artículo se explora la forma como se desarrolla la gestión de las fuerzas de ventas en el Perú desde la perspectiva de los recursos humanos. Su objetivo principal es el diagnóstico de aquellas variables de productividad comercial relacionadas con la gestión de personas tales como el reclutamiento y selección de vendedores, los roles que desempeñan los supervisores comercial, y sobre cómo las firmas gestionan el desarrollo de las competencias específicas para ventas, para así proponer acciones estratégicas para gestores, consultores y académicos en general. Se desarrolló un estudio a través del método Delphi en dos rondas con un panel de expertos. Al final de este estudio se presentan una serie de implicaciones gerenciales centradas en el desarrollo de habilidades de liderazgo comercial.
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This chapter explores the roles of corporate marketing strategies and brand management in the global retail industry, thus describing the concepts of marketing strategy, international retail marketing strategy, retail marketing mix, and internationalization; the relationship between corporate marketing strategies and internationalization; the challenges of retail marketing mix in the fashion retail industry; the overview of brand management; and the significance of brand management in the global retail industry. The implementation of corporate marketing strategies and brand management is critical for modern organizations that seek to serve suppliers and customers, increase business performance, strengthen competitiveness, and achieve continuous success in global business. Therefore, it is necessary for modern organizations to examine their corporate marketing strategies and brand management applications, create a strategic plan to regularly check their practical advancements, and rapidly respond to the corporate marketing strategies and brand management needs of customers in the global retail industry.
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This article considers the international retailing activities of Tiffany of New York between 1837 and 1914. Using data from the company archive alongside other sources, the findings indicate that five factors were determinants of sustainable international retailing: a centralized organizational structure, a stable ownership structure, existing international engagement, a strong brand identity, and a relevant international retail format. Placing Tiffany's activities in its wider commercial and consumer context, the findings illustrate the organizational changes and asset combination required to support the development of early international retail operations. The article contributes to theoretical understanding of the dynamics of retail internationalization.
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Streszczenie The main objective of the article is to investigate why entrepreneurs from the Mazovian region are not eager to apply for the EU funds. The authors asked the following research questions: Why are the entrepreneurs reluctant to apply for the EU funds? How (if) has the situation changed comparing the 2007-2013 and the 2014-2020 perspectives? What should be changed from the side of the EU perspective? In the research a qualitative method – direct interview with entrepreneurs – was used. 171 entrepreneurs were interviewed. Purposive sampling was used. The authors chose the companies, which fulfilled the following conditions: they were interested in applying for the EU funds; they had experience in getting support from the European Union; they perceive themselves as “innovative”. All enterprises were from the Mazovian region in Poland. It was stated that a large number of companies wants to apply for the EU funds, but they cannot do it due to many factors such as the necessity to include own funds; no interest to participate in any project; the willingness to purchase the apparatus or appliance or too high bureaucracy. The best way to make the EU funds available for the companies is to meet their problems and expectations first. It should be done in the form of consultations between the government and business world. Such consultations would bring ideas, which topics should be included into the proposed programmes. The originality of this work lies in studying factors, which make the entrepreneurs from the Mazovian region impossible to apply for the EU funds. It is very important to recognise them as the 2014-2020 perspective offers a huge amount of money, which can be well spent by the entrepreneurs, if they managed with hampering factors.
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Streszczenie The aim of the chapter is to show that now retail trade is a global sector but because of its specificity new strategies are necessary if global retailers want to sustain their advantage. The concept of globalization is discussed and then referenced to the retail sector. The process of retail internationalization which resulted in the globalization of retail sector is analyzed. It is assumed that the retailers were motivated by the goal of sustaining their competitive advantage. So some ideas of the main theoretical views of developing sustainable competitive advantage (SCA): Environmental View and Resource Based View, referring to the process of internationalization as well as Yip’s description of globalization process are presented. On the examples of some companies, leading the process of retail fast internationalization in XX century, like Ikea, Benetton, Carrefour, Wal-Mart, it is shown how the resources they developed and external environment contributed to their globalization process. It is found out that there were two stages of the globalization of retail sector: first, in which non food companies develop on international market and second, when the mass merchandisers offering food and other Fast Moving Consumer Goods (FMCG) were involved. The fact that after fast internationalization representatives of both groups face problems leads to the conclusion that to be successful in the contemporary global retail market new capabilities should be developed.
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La litterature sur les processus d’internationalisation a largement ete dominee par la theorie d’Uppsala et la theorie des New Ventures : ces deux approches permettent d’expliquer la croissance internationale lente des firmes matures et la croissance internationale rapide des jeunes entreprises, mais restent muettes sur les autres processus d‘internationalisation combinant âge et vitesse de developpement international. Cet article esquisse une matrice 2 * 2 et explore les differences de performances entre quatre processus d’internationalisation. Sur la base de donnees empiriques de l’industrie de la grande distribution au niveau mondial (1998-2004), une croissance internationale lente des le plus jeune âge semble preferable a toutes les autres options d’internationalisation. Et s’internationaliser jeune favorise la performance internationale plus que n’importe quel processus d’internationalisation a un âge plus mature, que ce processus soit lent ou rapide.
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A network approach, as it is developed by some Swedish researchers in industrial marketing and international business (see e.g. Hägg 6 Johanson (ed.), 1982 and Hammarkvist, Håkansson & Mattsson, 1982) is compared with the transaction cost approach associated with Oliver Williamson (e.g. Williamson, 1975, 1979, 1981). The reason we make such a tomparison is that we often get questions from colleagues in the scientific community, suggesting that what we try to do is rather similar to what the transaction cost approach is doing.
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The internationalization of retailing has been relatively slow if compared to the internationalization of manufacturing industries. However, the pace of cross-border investments by retail companies has been increasing in recent years. This trend has been particularly visible in Europe, as a consequence of the completion of the common market (project 1992). The author considers the case of direct foreign investment (DFI) by retail companies, focusing on their motives and means, and reviews the evidence available with respect to Europe. While there are a number of recent articles which investigate the existing patterns of DFI by retail companies, not much has been done in trying to analyse this evidence using the well established concepts developed by industrial organization literature. The first aim of the article is to review these concepts and see if, and to what extent, they can be useful to understand the patterns of DFI in retailing. Since the main reason for investing abroad lies in some form of innovation advantage, the nature of retail innovation, both process and product innovation, is considered, stressing its organizational nature. On this basis, a typology of motives for DFI by retail companies is obtained. DFI by retailers within the European Community is then considered and an attempt is made to use the descriptive model developed in the previous sections to interpret this evidence.
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Until the development of transaction-cost theory, economics did not have a theory of why firms exist and grow. Transaction costs theory seeks to explain which activities are organized within the firm and which ones are performed by independent agents. It is a theory of the role and size of firms. Since multinational enterprises are firms that extend their hierarchies across national boundaries, transaction costs theory can throw considerable light on the reasons behind the existence and the growth of such firms [4; 17; 9; 15]. With a few notable exceptions [5: 9; 15], most applications of the transaction costs approach to the multinational enterprise have focused on the in-ternalization of knowledge. This reflects the postwar predominance of horizontal investments in manufacturing by knowledge-intensive firms. This emphasis on the internalization of knowledge as a cause of multinational expansion may have given the erroneous impression that the applicability of transaction costs theory is restricted to post-World War II multinational enterprises. This paper argues that this is not the case. It seeks to explain the existence and growth of multinational enterprises in the tin industry, and, in the process, shows that transaction costs can be used to account for a very wide range of multinational enterprises, including those that do not fit the traditional mold. Recent research in business history has shown that the growth of European multinational enterprises differed in many ways from that of their *This paper has benefited from frequent discussions with Mira Wilkins and from Steve Nicholas' comments. Financial support from the Wharton Center for International Management Studies is gratefully acknowledged.
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The Scope.- The Retailing Scene.- The Data.- What to Expect.- The Swedish Prelude.- Meeths.- IKEA.- Hennes & Mauritz.- Kapp-Ahl.- Gulin's.- Ara-Jet.- The Swedish prelude.- Historical Examples.- A & P.- Woolworth's.- Kresge's.- Penney's.- Gimbel's.- May's.- General lesson.- Environment.- Federal Trade Commission.- Competition.- Purchasing power.- Companies by State.- Oil Companies.- Shell.- Standard Oil (New Jersey).- Standard Oil (Indiana).- Common feature.- Food Stores.- A & P.- Safeway.- Kroger.- Lucky.- Albertson's.- Winn-Dixie.- Grand Union.- Southland.- Spatial lesson.- Restaurants.- Burger King.- Wendy's.- Long John Silver.- Church's.- Winchell's.- Victoria Station.- Fast food chains.- Specialty Stores.- Home Furnishing.- Levitz.- Pay less.- Lowe's.- Toys and Books.- Toys "R"Us.- B. Dalton.- Promotional Apparel.- Hit or Miss, T.J. Maxx.- Mervyn's.- Loehmann's.- Fashion Apparel.- Lord & Taylor.- Saks Fifth Avenue.- Neiman-Marcus.- 1. Magnin.- Fashion chains.- Common Features.- Discounters.- Korvette.- Almart.- Venture.- Gold Key etc.- Target.- Caldor.- Wal-Mart.- Low-markup department stores.- Department Stores.- Generalities.- Allied Stores.- Associated Dry Goods.- R.H. Macy&Co.- Federated Department Stores.- May Department Stores.- Dayton Hudson.- Carter Hawley Hale.- Common Traits.- Conclusion.- Abbreviations.- References.- Appendices.
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Deals with the spread of retailing, a little-discussed topic. Hennes & Mauritz was founded at Vasteras in the 1940s as a retailer of watches and pens, but shifted to clothing c1947 selling trendy, inexpensive clothes to young women and men. It first expanded in Scandinavia, it spread to UK c1973 and is now in all countries of Western Europe as Scandinavian markets became saturated. It spread to lands of cultural closeness where entry was not difficult. The firm found estimating demand difficult and planning often failed. -D.J.Davis
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The introduction of modern supermarkets into low-income areas is a major aspect of most programs aimed at improving the conditions of consumers in developing countries. In this article, Goldman analyzes some of the reasons for the limited success of this approach and discusses implications for government and business actions in this area.
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This paper attempts to facilitate the development of a composite theory of entry mode choice by incorporating existing writings on entry mode choice into a comprehensive decision framework. The frame-work identifies four broad groups of variables that impact on the firm's entry mode choice decision, namely marketing strategy variables, organization specific variables, target country variables, and industry specific variables. A series of propositions is put forward as to how specific marketing strategy variables impact on entry mode choice.
The three traditional views of retail internationalization involve the diffusion of retail concepts, operational involvement in foreign markets and the international- ization of a retail management function. None of these identified categories is new, but there is evidence that there is an unprecedented level of interest in internationalization as a viable strategic option for retailers. This paper examines these themes within die grocery sector in Europe, through an empirical investigation of activity in the post-war period.
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This article presents a conceptual framework for analysing the internationalisation of knowledge-intensive service companies. The framework has been developed as a result of an empirical study of ten Scandinavian companies, representing different types of service -for instance, insurance, consulting and security. The internationalisation process is divided into four stages: prospecting, introduction, consolidation and reorientation. One major implication of the study is that internationalisation should not be viewed as mainly a question of globalisation or adaptation to local business conditions, as is usually assumed in the litera- ture. Instead it is the interplay between these two major strategic orientations that determines the outcome of the inter- nationalisation process, and companies need to learn how to balance the two successfully. The empirical results and practical implications of the study are summarised in a number of theses dealing with the overall guidance of the internationalisation process.
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More than twenty British retailers are now proudly displaying their fascias on the other side of the Channel. Other companies certainly have the same idea in mind. What decisions have to be made before this adventurous step is taken? Which is the best country to break into, how should negotiations be conducted? Graham Jackson has undertaken some research and suggests certain guidelines for the European minded British retailer.
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Attempts to break new ground by examining the motivations, obstacles, various organizational and decision-maker traits associated with internationalization, and factors aiding retailers' performance in overseas markets by interview survey in 42 companies. Investigates possible inter-relationships between the factors promoting retailer internationalization. Results show the structure of the proposed determinants is more complex than that suggested in previous studies. The findings represent an initial starting-point for theorizing and suggest many areas for future research.
Article
Multinational retail operations are becoming an increasingly important element in the modern retail environment. Until recently, multinational organisations have been limited in number, particularly because of the inhibiting cultural and organisational problems associated with international retail operations. The under-researched issue of the motivations which lie behind multinational retail operations is addressed by discussing the findings of earlier relevant research and presenting the findings of a survey carried out among leading United Kingdom multinational retailers. An investigation is made of the motivating factors behind international expansion and the significance of problems encountered. The survey suggests retailers' attitudes to international operations changed during the 1980s and this has important implications for future developments in multinational retailing.
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Presents a conceptual model that examines the determinants of the internationalization process of franchise systems. The basic assumption of the model is that the internationalization decision is essentially a cost/benefit assessment that is filtered through the perceptions of top management. Consequently, the central constructs of the model are perceived risk and perceived benefits which are shaped by a set of organizational and environmental factors, and which, in turn, determine the strengths of intentions to internationalize.
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Despite the euphoria surrounding 1992, the recent international expansion of British retail organisations has been oriented mainly towards the US. Such expansion has predominantly taken the form of the acquisition of US retailers, rather than through the establishment of greenfield stores. As a consequence of their US acquisitions, a number of British retailers are now well established across the Atlantic. Some reorientation of the geographical focus of British retail acquisitions abroad, however, may be necessary to reap the expected benefits of the Single European Market. British retail acquisitions in the US are examined in the years between 1984 and 1989 with particular emphasis on acquisition strategy, motivations, performance and the impact of 1992.
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Global marketing is based on cross-cultural similarities instead of cross-cultural differences. For a company encountering markets with similar cultural values it is easy to standardise the marketing program. Typically, however, most markets have different cultural values. The global marketer therefore has to decide how to coordinate its marketing program in the best way possible. This case study shows how a global retailer has coordinated its marketing program in an industry which has resisted the forces of globalisation more than most other industries.
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The strategic growth directions, taken by a sample of 27 major European retailers selected across the main EC states, are explored. A descriptive model is developed to assess such directional growth and the paths taken by the sample companies within the framework of the model are analysed. The findings indicate that similar patterns of development have occurred within certain sectors across national boundaries. The majority of trading activity exists within the national boundaries of the sample companies. Furthermore, the cross-border activity that exists tends to be small in scale relative to the size of the company, and in close geographic and marketing proximity to the country of domicile and the core business.
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Reviews selected literature on international retail activity and suggests new directions for research.
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The world-wide expansion of two specialist retailers is analysed. Looming market saturation at home is a potential and quantifiable trigger (‘Why?’). It is paralleled by strong entrepreneurial ambition and possibly the desire to pre-empt competitors (‘When?’). Centralized and standardized operations favour organic growth through owned stores (‘How?’). The process follows roughly decreasing cultural closeness (‘Where?’), to which the logistics function coupled with relative market size may cause aberrations. In unfamiliar and distant markets, franchising is used which calls for a separate and more random entry sequence.
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International retailing is widely recognized as a risky venture. The literature suggests that initial moves into foreign markets reflect attempts to minimize a range of perceived risks. Over time, as perceptions of risk change and experience curve factors come into play, one might expect a change of approach to foreign market investment. This paper examines the trends observed in British retail internationalization over the 1960–90 period and examines changes in the volume, nature and direction of investment. The relationship of these trends to risk reduction strategies and how they may change over time are considered. Geographical and cultural proximity, the use of specific entry mechanisms and the nature of the sector concerned are seen to be important considerations in understanding the patterns seen over time.
Article
The concept of brand equity is barely ten years old and has only recently become the subject of much academic research. This has largely focused on the short-term responses of US consumers to hypothetical brand extensions, with many findings of great potential interest to practitioners. These results need to be replicated, quantified, and developed, and the research needs to expand into other aspects of brand equity: defining and measuring it; building and managing it, especially over the long term; analysing the links between customer-based “brand strength” and financial “brand equity”; and leveraging brand equity geographically as well as through brand extensions.The paper argues that progress may have been hindered by attempts to find a single all-embracing measure of brand equity, partly because the value of a brand is not in practice separable from the value of the product and the rest of the firm. Its overall conclusion is that researchers should now focus more effort on the strategic, financial, managerial, and international aspects of brand equity.
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Wrigley has noted the burgeoning involvement of UK food retailers in the US market. In this paper, attention is drawn to a number of underlying factors that may go some way towards explaining this phenomenon. Of particular interest is the investment climate in the USA as a result of 'Reaganomics'. Ally this both to the oligopalistic tendencies in the UK food retailing market and to the fears of market saturation and further insights emerge in respect of the trends that Wrigley has observed.
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Although there is some literature on the general phenomenon of corruption, one is hard pressed to find any references—much less elaborations of it—in articles, books and programs in the area of international business administration. This paucity of treatment is difficult to comprehend. On the one hand, we are in an age when the public is increasingly emphasizing the need for corporations to exercise social responsibility. On the other, we have assertions by individuals that multinational enterprises are among the foremost practitioners of corruption, particularly in the less-developed nations where they operate. In view of these parallel developments, it would appear that there would be much more research and, thereafter, discussion of multinational corruption in the programs and literature of international business than presently exists. Some possible reasons for the lack of treatment given to this area may be (1) the difficulties in defining the phenomenon; (2) the delicacy of the research which characterizes the area; (3) the problems of obtaining data; and (4) the lack of agreement on the political, social, and economic effects of corruption.© 1973 JIBS. Journal of International Business Studies (1973) 4, 93–96
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This article reviews some of the criticisms directed towards the eclectic paradigm of international production over the past decade, and restates its main tenets. The second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains “a robust general framework for explaining and analysing not only the economic rationale of economic production but many organisational and impact issues in relation to MNE activity as well.”© 1988 JIBS. Journal of International Business Studies (1988) 19, 1–31
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