Retailers’ Market Entry Mode Choice from the Institutional Perspective: a Case Study of Tesco’s Entry into China’s 2nd and 3rd tier Cities

Ouyang, Qianni (2011) Retailers’ Market Entry Mode Choice from the Institutional Perspective: a Case Study of Tesco’s Entry into China’s 2nd and 3rd tier Cities. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Abstract

The main purpose of this paper is to examine how institutional environment of the host country affect multinational retailers’ entry mode choice, especially in the case of the host country has great regional variations. In order to achieve this objective, we introduce the institutional perspective—specifically the NEO Institutional Theory developed by Scott (1995) as a theoretical framework, which categorizing the institutional elements under three dimensions of regulative, normative and cognitive. Case study is considered as the most appropriate method in this study to assist a systematic understanding of the subject, so the case of Tesco’s entry in China’s second- and third-tier cities are investigated within the context of the NEO Institutional Theory.

This case study will not only examine the relationship between the institutional environment and retailers’ entry mode choices, but also add our understanding of the retail market of China’s second- and third-tier cities, which are believed as the hotspot areas for multinational retailers’ international expansion in following years.

As a result, we find the institutional elements exert significant impact on retailers’ entry mode selection at different levels, namely the country level, the culture level and the firm level. Besides, if target market is featured as the greatly regional differences, retailers tend to treat each segmentation as a new market and make relatively independent strategy rather than simply relying on their successful experience in other regions of the target market. We also consider the limitations of this study and then provide some recommendations in terms of both further theoretical research and managerial implications.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 09 Jun 2021 12:44
Last Modified: 10 Jun 2021 04:30
URI: http://eprints.nottingham.ac.uk/id/eprint/25015

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