Term
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Definition
-helps us generalize and predict
-theory made up of several propositions
-propositions state predicted relationships among 2 or more variables/concepts |
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Term
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Definition
-why retailer goes inter: push, pull, other
-types of retailers that go int: size, mkt share
-types of RI (acquisition, pure franchisor, global, multinational)
-RI method of entry/ownership (licensing, franchising, wholly owned etc)
-where retailer goes int (similar vs notsim)
-how retailer goes int (rapid vs slow)
-result of going int (learning, success vs failure) |
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Term
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Definition
Strategic International Retail Expansion Extended
-bulds on prior theories (risk, stages, institutional, dunnings) |
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Term
| SIREE propositions explain and predict RI: |
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Definition
-methods of entry
-timing/speed/reasons for RI
-outcomes of RI
-where a company goes for RI
-company characteristics associated with RI |
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Term
| key assumptions of stage theory |
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Definition
(RI is a process) (focuses on pattern of intern.
-international expansion more risky than domestic
-int. process is sequential (low to high)
-firm factors influence international involvment (rather than environmental factors)
-knowledge is based on experience in market |
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Term
| Stages based on risk and knowledge: |
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Definition
-go where risk is low
-go where knowledge is high
-early expansion to similar countries/cultures
-next expansion to less similar places |
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Term
| evidence of stages theory |
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Definition
mentions of:
-geographic prox
-cultural prox
-single store/slow entry in country to learn about |
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Term
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Definition
-focuses on ownership, location, and internalization factors-factors that influence a companys decision to internationalize
-helps explain how a retailers macroenvironment(host), microenv, retailers past experience, affect retailers intern. decision |
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Term
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Definition
include innovative or unique products or processes the company can use to obtain market power
-asset based and transaction based advantages |
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Term
| asset based advantages (ownership) |
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Definition
refer to tangible items such as patents or unique products
-global retailers generally have this bc of PRIVATE LABEL |
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Term
| transaction-based advantages |
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Definition
(comes about b/c the way things are done)
-customer service and centralized buying examples
-knowledge highly tacit-transfering it to others is difficult (tacit learning)
-include knowledge of how to internationalize |
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Term
| locational advantages (eclectic theory) |
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Definition
| relate to how suitable the host country is with respect to the firms strategies- how does country provide comfortable place for retailer to reside |
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Term
| cultural proximity (locational advantages) |
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Definition
ppl in some countries share similar patterns of life
-important for MULTINATIONAL RETAILERS
-PSYCHIC DISTANCE-opposite of cult. proximity (not important to global) |
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Term
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Definition
| -both push(retailers growth in home market is limited. saturation in home, space, legal restrictions) and pull(make a foreign market look attractive. less developed, markets with high growth in income, seek world capitals factors |
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Term
| competitors move (locational) |
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Definition
-a first mover advantage may be lost if competitors enter a foreign market
-the larger the retailer, the more crucial |
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Term
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Definition
-expanding closer to home reduces costs
-important for retailers selling private labels
-less important for decentralized |
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Term
| low cost and labor (locational) |
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Definition
| when carrefour opens in new commerical zone, attracts best tenants. tenants justifications to own autlets. |
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Term
| internalization (eclectic) |
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Definition
the greater a companys ownership assets, the more important it is to protect these assets
-keeping info within company
-only way is wholly owned |
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Term
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Definition
| (theory for franchising) suggests that companies franchise b/c monitoring foreign subsidiary is difficult |
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Term
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Definition
| (theory explanation for franchising) suggests that firms franchise bc they cant afford to expand on their own |
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Term
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Definition
mentions of:
-capitalizing on ownership advantages (asset based, transaction based)
-protecting company secrets
-country characteristics that pull company in (large untapped market (few competitors, many customers), favorable economic condition) |
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Term
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Definition
explains influences of macro environment and microenvironment
-emphasizes that a retailers INSTITUTIONAL ENVIRONMENT influences its decisions and behaviors (regulatory structures, laws, rules, cultural beliefs, norms, habits)
-RI leads to transfer of Retail Management Technology |
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Term
| regulative dimension (institutional theory) |
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Definition
emphasizes legal and poitical factors specific to a country
-strong rule of law; stability
-strong government; infrasturcture: stability |
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Term
| normative dimension (institutional) |
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Definition
gives priority to norms and cultural influence
-adaptiation is al ong-term accumulative process |
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Term
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Definition
explains why glbal retailer always uses the same entry mode during intern expansion
-organizations possess habits and intertia
-psychological
-corporate culture of change
-imitation |
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Term
| evidence of institutional theory |
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Definition
-legislation in country
-political risk/stability
-social expectiations about stores
-cutlrual norms about products/stores/shopping
-desires of company leaders
-following copyng competitors |
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Term
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Definition
-every foreign market evaluated-by its investment risk
-company characteristics influence level of risk they perceive
-level of risk perceived influences (level of international invest, mode of entry, probably most compact of theories) |
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Term
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Definition
- various risks in country (political, financial, security, social)
-retailers will begin RI in countries culturally similar |
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Term
| overlaps in theories/evidence |
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Definition
| -multiple theories include risk, competitve and social/cultural considerations |
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