IDEAS home Printed from https://ideas.repec.org/a/rfa/bmsjnl/v3y2017i4p54-58.html
   My bibliography  Save this article

The Failure of Home Depot in China - A Case Study

Author

Listed:
  • Shihui Zheng

Abstract

In modern business management, organizational behavior is a crucial factor in influencing the success. Especially, when considering the market performance of a business, the decision-making behavior may be an important factor. In different local conditions, organizational behavior might be a determining factor in success. The paper, by studying the case of the US Home Depot in China, attempts to analyze the behavioral factors impacting the success in the local place of its targeted market. Based on the two factors including incompetent local adaptation and the wrong entry time and entry mode leading to failure, some recommendations are made. Firstly, the company could conduct a more detailed and systematic research of the local conditions, especially the local cultural and economic features. Secondly, it is crucially important to know the exact time and the suitable entry mode. Thirdly, that the Home Depot could have study the communicative mode with the locals heavily influenced by the local cultural traditions and conventions in order to avoid blind entry strategy. To conclude, for the success of cross-border businesses, being adaptable to the local consuming habits is an important premise of the sustainable development for the Home Depot in the international market.

Suggested Citation

  • Shihui Zheng, 2017. "The Failure of Home Depot in China - A Case Study," Business and Management Studies, Redfame publishing, vol. 3(4), pages 54-58, December.
    • Handle: RePEc:rfa:bmsjnl:v:3:y:2017:i:4:p:54-58
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/bms/article/view/2791/2987
    Download Restriction: no
    File URL: http://redfame.com/journal/index.php/bms/article/view/2791
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chol Lee & Robert T Green, 1991. "Cross-Cultural Examination of the Fishbein Behavioral Intensions Model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 289-305, June.
    2. Chao C. Chen & Xiao-Ping Chen & Shengsheng Huang, 2013. "Chinese Guanxi: An Integrative Review and New Directions for Future Research. 中国人的关系: 综合文献回顾及未来研究方向," Management and Organization Review, The International Association for Chinese Management Research, vol. 9(1), pages 167-207, March.
    3. Chen, Chao C. & Chen, Xiao-Ping & Huang, Shengsheng, 2013. "Chinese Guanxi: An Integrative Review and New Directions for Future Research," Management and Organization Review, Cambridge University Press, vol. 9(1), pages 167-207, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    2. Maria Kravtsova & Aleksey Oshchepkov, 2019. "Market And Network Corruption," HSE Working papers WP BRP 209/EC/2019, National Research University Higher School of Economics.
    3. Hongjin Zhu & Yue Pan & Jiaping Qiu & Jinli Xiao, 2022. "Hometown Ties and Favoritism in Chinese Corporations: Evidence from CEO Dismissals and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 176(2), pages 283-310, March.
    4. Jayanti, Rama K. & Raghunath, S., 2018. "Institutional entrepreneur strategies in emerging economies: Creating market exclusivity for the rising affluent," Journal of Business Research, Elsevier, vol. 89(C), pages 87-98.
    5. Li, Mengyu & Li, Jinglei & Yasin, Megat Al Imran & Hashim, Norliana Binti & Ang, Lay Hoon & Li, Fangyi, 2023. "Where do I belong? A study of associations between guanxi capital and local identity through WeChat use among Chinese youth," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    6. Lee, Liane W.Y. & Tang, Yiming & Yip, Leslie S.C. & Sharma, Piyush, 2018. "Managing customer relationships in the emerging markets – guanxi as a driver of Chinese customer loyalty," Journal of Business Research, Elsevier, vol. 86(C), pages 356-365.
    7. Chu, Zhaofang & Feng, Bo & Lai, Fujun, 2018. "Logistics service innovation by third party logistics providers in China: Aligning guanxi and organizational structure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 291-307.
    8. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    9. Yang, Jie & Ma, Jieqiong & Zhang, Yong & Hong, JungHwa, 2018. "With whom should you have dinner? A multidimensional framework for understanding political ties in China," Business Horizons, Elsevier, vol. 61(6), pages 891-898.
    10. Sven Horak & Yuliani Suseno, 2023. "Informal Networks, Informal Institutions, and Social Exclusion in the Workplace: Insights from Subsidiaries of Multinational Corporations in Korea," Journal of Business Ethics, Springer, vol. 186(3), pages 633-655, September.
    11. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.
    12. Jean-François Hennart & Dylan Sutherland, 2022. "International business research: The real challenges are data and theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2068-2087, December.
    13. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 0. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-46.
    14. Sarah Hudson & Helena V. González-Gómez & Cyrlene Claasen, 2022. "Societal Inequality, Corruption and Relation-Based Inequality in Organizations," Journal of Business Ethics, Springer, vol. 181(3), pages 789-809, December.
    15. Peidong Sang & Jinjian Liu & Lin Zhang & Lingqiao Zheng & Haona Yao & Yanjie Wang, 2018. "Effects of Project Manager Competency on Green Construction Performance: The Chinese Context," Sustainability, MDPI, vol. 10(10), pages 1-17, September.
    16. Chunhao Ma & Biying Wang & Caozhi Sun & Le Lin, 2023. "The Spillover Effect of Emotional Labor: How It Shapes Frontline Employees’ Proactive Innovation Behavior," SAGE Open, , vol. 13(3), pages 21582440231, August.
    17. Jane Menzies & Stuart Orr & Justin Paul, 2020. "SME Internationalisation: The Relationship Between Social Capital and Entry Mode," Management International Review, Springer, vol. 60(4), pages 623-650, August.
    18. Peter Ping Li & En Xie, 2019. "The unique research on the informal ties and social networks in East Asia: Diverse perspectives and new research agenda," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 305-319, June.
    19. Hongjuan Zhang & Liang Wang & Rong Han, 2019. "The China-West divide on social capital: A meta-analysis," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 745-772, September.
    20. Chen, Xiao-Ping & Ren, Han, 2023. "Indirect cronyism and its underlying exchange logic: How managers’ particularism orientation and the third Party’s hierarchical power strengthen its existence," Organizational Behavior and Human Decision Processes, Elsevier, vol. 175(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfa:bmsjnl:v:3:y:2017:i:4:p:54-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.