A tactical retreat? Conceptualising the dynamics of European grocery retail divestment from East Asia

The internationalisation of the firm is a highly dynamic process, in which periods of investment and expansion intermingle with periods of divestment and retrenchment. Academic research to date has focused on identifying the reasons for and the processes of divestment. Empirical studies either evidence generic pressures or provide case studies of specific incidents. There few longitudinal studies of international divestment, consequently the dynamic interactions between host market, home market and firm level factors, and how the institutional context changes over time is underplayed. This paper seeks to rectify this gap in our understanding.We explore the rationale and evolving dynamics of European grocery retail divestment in East Asia over a thirty year period. Taking an inductive approach and drawing on analysis of contemporary narratives drawn from company documentation, trade journals, newsfeeds and market reports, three phases can be identified characterised by specific factors and combinations of factors which intersect to provide the key pressures and stimuli for divestment. We conclude that at different time periods, different internal and external contextual influences manifest themselves through different priorities within the firm’s strategy – marked by a switch from local (host) market, to regional, to global firm-centric considerations. Longitudinal analyses allow a greater recognition of this dynamic interplay of factors, and the changes in these relationships, and provides a more nuanced understanding of the international divestment process.     

Dependency in Manufacturer-Retailer Relationships: The Potential Implications of Retail Internationalisation for Indigenous Food Manufacturers

This paper explores the sets of trading relationships and interdependencies that existed between British and Irish food retailers and the Irish food manufacturing sector prior to Tesco Stores acquisition of Power Supermarkets in 1997. Power Supermarkets was at that time the largest grocer in Ireland. The paper examines the role played by Irish and British retailers in the development of the Irish food manufacturing sector. It points to some of the ways in which retail internationalisation and growing retail concentration are likely to affect food manufacturers and the sets of power and dependency relationships that exist along the food chain. It demonstrates that the effect of internationalisation is likely to be asymmetric with small and emerging firms more likely to experience adverse consequences. The impact upon manufacturers' brand portfolio and customer portfolio strategies are also highlighted.     

The determinate effects of competences and decision process factors on firms' internationalisation

This study introduces the current situation of Taiwan's financial industries and presents a literature review including competences, competitive advantage, and key factors under the process of the international investment decision, and internationalisation. The study takes a ‘triangulation’ approach that uses both qualitative and quantitative methods in the exploration of the internationalisation of Taiwan financial markets. Sampling targets of the research consist of managers from banks, security firms, and insurance firms in Taiwan. The findings highlight perceptions of factors such as resources, skill, market knowledge, and international investment experience of firms aiding the internationalisation of Taiwan financial industry. Further, this study reveals that firms' internationalisation relates positively to the firms performance.     

Liberty in Paris: International retailing, 1889–1932

This article considers the international retailing operation of Liberty of London in Paris between 1889 and 1932. Using data from the company archive, the article challenges assumptions regarding the nature and role of early retail activity in the internationalisation process. Drawing on theoretical frameworks from the marketing and management literature, the article considers Liberty’s Paris operation from entry stage activity in the late 1880s through to the divestment process in the early 1930s. Detailed consideration of this firm shows that the specialist retailer with distinct firm specific assets developed in the domestic market was operating internationally in the late nineteenth century.     

Assessing the needs of international markets against an emerging market company's capabilities: A tool for internationalization

Senior managers in emerging markets often strive to ensure that their companies develop sufficient capabilities to confront the needs they encounter in international markets. However, extant research and practice remain unclear as to how senior managers in emerging market companies can approach assessing the needs of their international markets against their own company's capabilities, to aim for a balance between both. This article offers an innovative approach for assessing the needs of international markets against an emerging market company's capabilities. Based on the assessments of 100 senior managers leading emerging market companies, we explain how this approach can provide two key insights. First, evidence of a balance between the needs of international markets and an emerging market company's capabilities, that indicates the company's competitive position is focused; or evidence of an imbalance between the needs of international markets and an emerging market company's capabilities, that indicates the company's competitive position is either vulnerable or overqualified. Second, an understanding of where the gaps between the needs of international markets and an emerging market company's capabilities are, that enables improving the company's competitive position by closing these gaps. Drawing on this approach, we offer an open access tool that allows senior managers in emerging markets to identify and improve their own company's competitive position for internationalization. Using this tool, senior managers can lead their emerging market companies toward a focused competitive position in international markets, providing better chances of successfully capturing potential benefits.     

The Internationalisation of Small to Medium-Sized Retail Companies: Towards A Conceptual Framework

The internationalisation of large multinational retailers is well documented and much research attention has been given to their processes, motives and strategies for expansion. However, a successful international retailer does not necessarily have to be a large retailer. Dynamic smallerretailers with strong concepts, formats and products have shown themselves capable of rapid international growth. To date there has been a distinct lack of research on the internationalisation of small to medium-sized companies (SMEs) operating in the retail sector. Any discussion of SME internationalisationwithin the retail industry should recognise that research on large multinational corporations is not directly transferable to small and medium-sized firms who by their very nature and characteristics embrace a very different set of opportunities in the international market. To address thisgap in research, this paper draws upon broader established international SME and entrepreneurship literatures to provide a framework for examining some of the key aspects of the internationalisation of retail SMEs.     

Internationalising cultural products: the Ouroboros strategy and the case of visual kei

ABSTRACT

Scholars have developed a vast literature that helps firms internationalise products and brands. Yet, there is comparatively limited work that examines the internationalisation strategies of cultural products. Through a case study of 31 visual kei rock bands, this study sheds light onto the patterns, objectives, and timing of internationalised cultural products. The results suggest that visual kei musicians adopt one of two internationalisation strategies: “standard internationalisation” or the “Ouroboros strategy.” Standard internationalisation is a linear strategy, where the objective is market growth through the acquisition of consumers in international markets, and where internationalisation can occur as early as the introduction stage of a product’s life. The Ouroboros strategy is a nuanced strategy where the pattern of internationalisation is circular, the objectives include market expansion and cultural goals, the target markets are both foreign and domestic consumers, and where internationalisation occurs in the growth and mature stages of bands’ life cycles.     

东道国网络结构三维嵌入与零售专业技能跨国转移

从网络视角运用嵌入关系来分析零售专业技能跨国转移具有重要意义.通过对沃尔玛、家乐福和乐购在华子公司的案例分析,发现零售企业海外子公司东道国网络的关系嵌入、网络中心度、网络密度对零售专业技能跨国转移的效果有正向影响,群体中心度对零售专业技能跨国转移的效果有负向影响.     

Innovation in retail internationalisation: Tesco in the USA

This paper examines the market entry of the UK's largest retailer (Tesco) into the USA. Tesco's launch of a new brand – Fresh & Easy Neighborhood Markets – in virgin territory is a bold move, notwithstanding the firm's considerable success with its overseas investment strategy (which within ten years has resulted in more than 50% of the firm's operating space being outside its ‘home’ market). The paper contextualises the study by taking a historical view of innovation in the retail industry, which reveals that generally - and certainly for the most part of the twentieth century – innovations have dominantly flowed from the US to the UK. The paper suggests that Tesco's US experiment is unusual both in terms of the innovatory aspects of its market entry and the reversal in that conventional direction of knowledge transfer. The Fresh & Easy story is then examined in terms of ten ‘dimensions of innovation’ involved in the market entry. The paper concludes by drawing out from these ‘dimensions of innovation’ a number of important issues for management scholarship raised by the study, stressing the need to incorporate insights from a wider social science literature.     

Exploring brand identity and entrepreneurship as drivers of small specialist retailer internationalisation: a German case study

While the comparatively sparse literature on small specialist retailing typically supports a proactive interpretation of the drivers of retail internationalisation, a more differentiated picture exists with regard to understanding the role of the brand construct in this process. The wider marketing literature recognises that brand identity, as well as brand image, can inform the process of internationalisation; yet, research focusing on small specialist retail internationalisation remains underdeveloped in this regard. Neither the notion of a multi-faceted brand concept nor its function as a strategic device in the internationalisation process has been analysed with sufficient depth. Furthermore, a better understanding of how and to what extent brand identity is interdependent upon the characteristics and activities of the entrepreneur is yet to emerge. This paper explores the construct of brand identity and its role within small specialist retail internationalisation, and the related influence of the entrepreneur on the internationalisation process. A case study approach is adopted, examining one German small specialist retailer. Data collection involved semi-structured interviews with owner-managers and other senior management, an assessment of company documentation as well as participant observation, providing in-depth insights into distinctive internationalisation patterns. The study finds that a simple ‘either-or’ approach, in terms of characterising the retailer’s motivation to internationalisation as being either reactive or proactive, is inadequate in understanding this particular case. Whilst initial motivation was characterised as being reactive, the motivations underpinning further planned internationalisation are determined to be more proactive. More particularly, analysis reveals how brand identity is considered to play an important role in the internationalisation of the case study retailer, and highlights the numerous ways in which the characteristics and activities of the entrepreneurial owner-managers impact the firm’s internationalisation. This research contributes to retail and management research concerning SME internationalisation as well as to the retail branding literature.     

Transnational corporations’ localization strategies via retail attributes: Focus on Chinese market

We explored the localization strategy of the transnational corporations (TNCs) in China by employing retail store attributes within the fast-changing Chinese retail market to select stores. We applied the multinomial logit (MNL) model based on McFadden’s (1974) random utility theory to proceed with this study. A questionnaire survey was conducted in nine areas in China. Surveys targeted people who had used Tesco, Walmart, and RT-Mart. 950 questionnaires were distributed, and 909 valid samples were obtained. The analysis results indicated that RT-Mart and Walmart, top players in the Chinese distribution industry, showed higher customer satisfaction in all sectors than Tesco, and statistically, all variables were significant. Customers of RT-Mart and Walmart were more satisfied compared with Tesco's customers in all variables, such as product quality, price, location, convenience, atmosphere, and staff service. In comparison to RT-Mart, Walmart had lower prices, fewer branches and convenience facilities, and lesser brand awareness, but the model estimates indicated that customer satisfaction was high regarding product quality, atmosphere, and employee service. In this study, various behavior factors were reviewed in consideration of consumer selection of stores; this aspect is significant because we have added attributes pertaining to the brand in our study.     

The resource dynamics of early internationalising Indian IT firms

Building on the resource-based view of the firm, this study explores how firms entering into early internationalisation combine different resources to discover the international market opportunities. Based on an in-depth analysis of case studies of five knowledge-intensive firms from India, this study suggests that the differences in the extent of resources available and their combinations influence the early stage of the internationalisation process and pace of learning in the foreign markets. This study contributes to the existing research on international entrepreneurship by explaining how new international ventures overcome the challenges of internationalisation by wisely utilising a broad set of available and potential resources during their early internationalisation efforts and gradually shift the focus on the internalisation of resources. Moreover, this study suggests that the effects of the combination of resources vary across different ventures. A strong combination can increase internationalisation and minimise the risks of failure in new international ventures.     

Shutting up shop: understanding the international exit process in retailing

Internationalisation is a much-studied phenomenon. Exit from international markets has been less analysed. Where it has been studied, most work has been on motives and causes, with relatively little on processes. This article explores the process of international exit in a retail context. It examines the run-up to, announcement of and fall-out from the decision by Marks and Spencer (one of Britain's leading retailers) to close its French stores. The article concludes that understanding the process of market exit is at least as important both for theoretical and practical reasons as understanding the decision to exit or divest. Further research needs to be undertaken on market exit and the processes involved, in order to contribute further to the theory and practice of internationalisation.     

Supply chain capabilities for facilitating the internationalisation of retailers – a multiple case study of three Swedish retail companies

ABSTRACT

Market-oriented aspects of retail internationalisation have received a lot of research attention since the 1990s. However, beyond these aspects lies also supply-chain oriented capabilities that are necessary for retailers to successfully internationalise into foreign sales markets. By using a perspective based on resource-based theories, this paper explores supply-chain oriented capabilities that facilitate retail internationalisation. The research is based on a multiple case study of three Swedish retailers. Through the perspective of research based theories, specifically capabilities, the empirical data is studied in a single-case as well as a cross-case analysis. Findings reveal three supply chain-oriented capability categories (leadership capability, integration capability and learning capability) of importance for retail internationalisation. Resources necessary for the capabilities are to be found internally at the retailer, but also externally at other firms. This research adds to the market-oriented knowledge on retail internationalisation by adding a supply-chain oriented perspective. Further, it provides an understanding of the early phases of retail internationalisation.     

Retailers’ foreign market exits over time: A strategic management perspective

Foreign divestment research has focused on identifying divestment drivers but has only rarely investigated the long-term divestment behavior of companies. This study uses longitudinal case studies to explore the foreign market exit behavior of all seven of the ten largest store-based retailers in the world that had exited any foreign market between 2005 and 2020. It considers the three main theoretical perspectives in the field of strategic management, i.e., the industry-based, the resource-based, and the institution-based view. We find that retail market exits are often connected actions within certain epochs. The resource-based view seems the most appropriate strategic view to explain retailers’ long-term market exit behavior because their exits are often triggered by their idiosyncratic resources. However, we find some common patterns across the retailers’ market exit behavior that show the relevance of the industry-based and the institution-based view. Furthermore, the study detects the recently increasing phenomenon of partial exits which can be explained by the real options theory.     

外商对华撤资的原因与对策分析

撤资行为是和对外直接投资相伴而生的国际经济活动。跨国公司在华进行直接投资的同时也一直存在撤资行为。2008年全球金融危机爆发以来,在华外商投资企业出现了一定范围的撤资行为,给我国的经济发展带来了一定的消极影响。面对在华外商投资企业的撤资行为,必须分析其发生的原因,并采取措施应对,保证我国与跨国公司在经济全球化中取得双赢。     

Factors Influencing International Retailers' Market Entry Mode Strategy: Qualitative Evidence from the UK Fashion Sector

Research on the internationalisation of retail firms has focused on many diverse themes such as the motivations for internationalisation, individual company experiences and the direction and extent of international retail activity. One particular aspect of the retailer internationalisation process that has remained relatively under researched is entry mode choice. Furthermore, while research on fashion retailing is increasing, the internationalisation of the sector has been largely neglected in the literature. The aim of the current work is to provide an initial attempt at redressing this research gap. The paper reports findings from an in-depth study into the entry mode choice decision process of seven major UK international fashion retailers. It is found that entry mode strategy emerges over time as a result of a combination of historical, experiential, financial, opportunistic, strategic and company-specific factors.     

Geographic export diversification: Determinants and their link with export performance

This study examines company‐specific factors that may help explain the choice of an export‐market strategy and explores how the selected export strategy contributes to explaining company's export performance (XP). Concentrating on a specific area within a broad spectrum of export behavior analysis has enabled us to examine these factors in greater depth. The results of our research, which was carried out using a sample comprising Spanish exporting companies, show a firm's size, a firm's age, and a firm's greater foreign ownership in its share capital are all determining factors for adopting a strategy geared to export‐market diversification. A greater level of investment in R&D and greater international commitment are also important in this regard. We suggest reinforcing these two factors because there is evidence of a better XP among firms that have a wider range of foreign markets.     

The privatization of swarzedz furniture company (SFM): Lessons from Poland's first underwritten public offering

The sale through public offering of Poland's Swarzedz Furniture Company demonstrates that relatively complex privatization transactions can be successfully implemented in economies where capital market institutions have not yet fully emerged. However, the company's performance before and after privatization suggests that a change of ownership is a necessary, but not a sufficient, requirement for effective restructuring of a state-owned enterprise in a formerly socialist economy.     

Expansion of Japanese Retailers Overseas

Abstract

There have been a number of studies of foreign retail entry into Japan but few that consider the moves of Japanese retailers to other Asian countries. Nonetheless expansion into Asia of Japanese retailers, notably since the early 1990s, has been considerable. Many have been attracted by the large size of several national markets. Large Japanese trading houses have played a significant direct and indirect role in the international moves of Japanese retailers. China has become the major place of investment for Japanese retailers with 21 retail companies established by Japanese firms. The history of the internationalisation of Japanese retailing shows three phases of development. A first phase is characterised by department stores, a second phase is a slowing of activity in the late 1990s and a third phase of rapid expansion is presently evident. The key to the current phase is the establishment and strength of non-retail supply firms in the same East Asian region into which retailers wish to expand.