scholarly journals The Approach of Major Players in Retail in Expanding Their Operations into Developing Markets – Taking Walmart as an Example

2021 ◽  
Vol 5 (9) ◽  
pp. 55-60
Author(s):  
Wenyan Zhang
Keyword(s):  
Emerging Markets ◽  
Business Performance ◽  
Mode Choice ◽  
Entry Mode ◽  
Emerging Countries ◽  
Entry Mode Choice ◽  
Developed Markets ◽  
Developing Markets ◽  
Specific Focus ◽  
Expansion Behavior

This research investigates the expansion behavior of international (giant) retailers, with a specific focus on the determinants of the entry mode choice in emerging markets based on the performance of Walmart in its venture into less developed markets. This research investigates the approach in which major players in retail are expanding their operations into other developing markets, specifically focusing on how the entry mode decisions of giant retailers moderate the risks and difficulties in making business in emerging countries. The objective of this study is to analyze and evaluate the potential causes and antecedents of large merchants’ entry mode (EM) choices by assessing Walmart’s business performance in less advanced nations in recent years.

How do linking, leveraging and learning capabilities influence the entry mode choice for multinational firms from emerging markets?

2017 ◽  
Vol 12 (2) ◽  
pp. 171-193 ◽  
Author(s):  
Wen Li ◽  
Bin Guo ◽  
Gangxiang Xu
Keyword(s):  
Emerging Markets ◽  
Host Country ◽  
Multinational Firms ◽  
Cultural Distance ◽  
Mode Choice ◽  
Entry Mode ◽  
Content Type ◽  
Entry Mode Choice ◽  
Learning Capabilities ◽  
The Relationship

Purpose Based on the linkage-leverage-learning (LLL) framework developed by Mathews (2006), the purpose of this paper is to examine how linking, leveraging and learning capabilities influence the choice of foreign-entry mode, and the way such influences are contingent on context factors in the emerging markets. Design/methodology/approach Contrary to a prior literature applying the LLL framework, which mainly used case studies, this paper adopts a quantitative approach and is based on a sample of 321 Chinese listed companies to test the hypotheses. Findings The results show that multinational firms from emerging markets (EMFs) with stronger LLL capabilities are more likely to choose the wholly owned mode in foreign entries. In addition, the relationship between linking capability and wholly owned entry mode choice is weaker at higher levels of cultural distance between home and host country. At the same time, the relationship between learning capability and wholly owned entry mode choice is weaker at higher levels of cultural distance between home and host country, and of institutional distance between prior entries and the focal entry. Research limitations/implications An entry mode strategy for firms without ownership advantages and the identification of boundary conditions for applying different LLL capabilities are recommended. The generalizability of the findings from a single-country setting still needs further validation with other emerging economies. Originality/value This paper treats internationalization of firms from emerging countries with a different perspective. The underlying idea in this study is that internationalization is not only a process for EMFs to utilize externally accessible assets abroad, but also a process of simultaneously combining internationalization with experiential learning and capability utilization in overseas markets. In addition, the authors also contribute to the literature by providing strong empirical evidence for validating the LLL model and extending the existing entry mode studies.

scholarly journals Master Franchising as Foreign Entry Mode: Evidences from the Spanish Franchise System

2012 ◽  
Vol 2012 ◽  
pp. 1-8 ◽  
Author(s):  
Veronica Baena
Keyword(s):  
Middle East ◽  
United Arab Emirates ◽  
Mode Choice ◽  
Entry Mode ◽  
Franchise System ◽  
Entry Mode Choice ◽  
Developed Markets ◽  
Middle East Countries ◽  
Determining Factors ◽  
Foreign Entry

The present study examines how a number of market conditions may constrain entry mode choice into Middle East nations. Specifically, this paper focuses on master franchising and analyzes the determining factors in this entry mode decision. A quantitative approach was applied to a sample of Spanish franchisors operating through 96 franchisee outlets across 6 Middle East countries in January 2010. They are Bahrain, Cyprus, Israel, Jordan, Saudi Arabia, and United Arab Emirates. Findings show the importance of a number of host country’s features (economic development, corruption, and efficiency of contract enforcement). The scant theoretical or empirical attention given to the topic of foreign entry mode choice via franchising has usually been examined from a U.S. base and focused on developed markets. To fill this gap, the present study analyzes the international spread of the Spanish franchise system—ranked fifth worldwide both in terms of the number of franchisors (1,019) and the quantity of franchisee outlets (65,026)—into the Middle East.

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