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International retailing as embedded business models

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  • Steve Burt
  • Ulf Johansson
  • John Dawson

Abstract

As retailers internationalize they interact with diverse socio-political-economic environments and the activities, processes, behaviours and outputs underpinning their business models evolve over time and space. Retailers are not passive, and through managerial agency they interpret the environment to compete and further their own commercial aims. Consequently, mutual interaction with the host environment means that changes may also occur in the established institutional norms in a market. Most existing studies have focused on the implications of territorial embeddedness for internationalizing retailers. In this article we also consider the societal and network forms of embeddedness identified by Hess, and illustrate how retailers transfer, negotiate and adapt their business model as they embed themselves in different institutional environments. A case study of IKEA is used to illustrate the synthesis of these two frameworks.

Suggested Citation

  • Steve Burt & Ulf Johansson & John Dawson, 2016. "International retailing as embedded business models," Journal of Economic Geography, Oxford University Press, vol. 16(3), pages 715-747.
    • Handle: RePEc:oup:jecgeo:v:16:y:2016:i:3:p:715-747.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbv008
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    Cited by:

    1. J Dara Bloom & C Clare Hinrichs, 2017. "The long reach of lean retailing: Firm embeddedness and Wal-Mart’s implementation of local produce sourcing in the US," Environment and Planning A, , vol. 49(1), pages 168-185, January.
    2. Linh Nguyen Phuong & Khanh Cao Tuan & Nhuan Nguyen Duc & Uyen Nguyen Thi, 2022. "The Impact of Absorption Capability, Innovation Capability, and Branding Capability on Firm Performance—An Empirical Study on Vietnamese Retail Firms," Sustainability, MDPI, vol. 14(11), pages 1-17, May.
    3. Mohr, Alex & Batsakis, Georgios, 2018. "Firm resources, cultural distance and simultaneous international expansion in the retail sector," International Business Review, Elsevier, vol. 27(1), pages 113-124.

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