IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v36y2020i3p453-481.html
   My bibliography  Save this article

Food retail expansion patterns in Sub‐Saharan Africa and the Middle East and North Africa: Institutional and regional perspectives

Author

Listed:
  • Rachel A. Bahn
  • Gumataw K. Abebe

Abstract

Food retail transformation in developing countries continues to receive attention due to its implications for business expansion and food system development. We assess the dynamism of supermarketization in two relatively understudied regions—Sub‐Saharan Africa and the Middle East and North Africa—applying the institution‐based view and econometric analysis of a pooled cross‐sectional dataset of over 700 country‐year observations. While modern food retail has shown rapid growth, the traditional food retail segment is still dominant in both regions. The observed food retail patterns may be attributed to economic factors (income levels), sociodemographic (female labor force participation, urbanization, and religion), and institutional factors (control of corruption, ease of starting a business, time to enforce a contract, and World Trade Organization membership). However, while economic and sociodemographic variables exhibit similar effects in both regions, results are mixed regarding the institutional factors; potential explanations are suggested [EconLit citations: O100, L100].

Suggested Citation

  • Rachel A. Bahn & Gumataw K. Abebe, 2020. "Food retail expansion patterns in Sub‐Saharan Africa and the Middle East and North Africa: Institutional and regional perspectives," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 453-481, June.
  • Handle: RePEc:wly:agribz:v:36:y:2020:i:3:p:453-481
    DOI: 10.1002/agr.21634
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21634
    Download Restriction: no

    File URL: https://libkey.io/10.1002/agr.21634?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:bla:devpol:v:22:y:2004:i::p:587-602 is not listed on IDEAS
    2. Tony W Tong & Todd M Alessandri & Jeffrey J Reuer & Asda Chintakananda, 2008. "How much does country matter? An analysis of firms’ growth options," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(3), pages 387-405, April.
    3. Sharad Tandon & Andrea E. Woolverton & Maurice R. Landes, 2011. "Analyzing modern food retailing expansion drivers in developing countries," Agribusiness, John Wiley & Sons, Ltd., vol. 27(3), pages 327-343, June.
    4. Oliver E. Williamson, 1991. "Strategizing, economizing, and economic organization," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 75-94, December.
    5. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
    6. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    7. Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
    8. repec:bla:devpol:v:22:y:2004:i::p:525-556 is not listed on IDEAS
    9. Silvia Ferrari & Francisco Cribari-Neto, 2004. "Beta Regression for Modelling Rates and Proportions," Journal of Applied Statistics, Taylor & Francis Journals, vol. 31(7), pages 799-815.
    10. Liang Lu & Thomas Reardon, 2018. "An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E-Commerce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(5), pages 1320-1335.
    11. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    12. repec:bla:devpol:v:24:y:2006:i:2:p:163-174 is not listed on IDEAS
    13. Chauvin, Juan Pablo & Glaeser, Edward & Ma, Yueran & Tobio, Kristina, 2017. "What is different about urbanization in rich and poor countries? Cities in Brazil, China, India and the United States," Journal of Urban Economics, Elsevier, vol. 98(C), pages 17-49.
    14. Lane, Philip R, 2001. "International Trade and Economic Convergence: The Credit Channel," Oxford Economic Papers, Oxford University Press, vol. 53(2), pages 221-240, April.
    15. John Humphrey, 2007. "The supermarket revolution in developing countries: tidal wave or tough competitive struggle?," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 433-450, July.
    16. Elizabeth Asiedu, 2006. "Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability," The World Economy, Wiley Blackwell, vol. 29(1), pages 63-77, January.
    17. Elizabeth Asiedu & James Freeman, 2009. "The Effect of Corruption on Investment Growth: Evidence from Firms in Latin America, Sub‐Saharan Africa, and Transition Countries," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 200-214, May.
    18. repec:bla:devpol:v:22:y:2004:i::p:515-523 is not listed on IDEAS
    19. Anderson, Evan E, 1979. "An Analysis of Retail Display Space: Theory and Methods," The Journal of Business, University of Chicago Press, vol. 52(1), pages 103-118, January.
    20. Tim Büthe & Helen V. Milner, 2008. "The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?," American Journal of Political Science, John Wiley & Sons, vol. 52(4), pages 741-762, October.
    21. Charles Dhanaraj & Paul W. Beamish, 2009. "Institutional Environment and Subsidiary Survival," Management International Review, Springer, vol. 49(3), pages 291-312, June.
    22. Peter J Buckley, 2002. "Is the International Business Research Agenda Running Out of Steam?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 365-373, June.
    23. repec:bla:devpol:v:22:y:2004:i::p:557-586 is not listed on IDEAS
    24. Duangkamon Chotikapanich & D. S. Prasada Rao & Kam Ki Tang, 2007. "Estimating Income Inequality In China Using Grouped Data And The Generalized Beta Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 127-147, March.
    25. V. K. Narayanan & Liam Fahey, 2005. "The Relevance of the Institutional Underpinnings of Porter's Five Forces Framework to Emerging Economies: An Epistemological Analysis," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 207-223, January.
    26. Spencer Henson & Steven Jaffee, 2008. "Understanding Developing Country Strategic Responses to the Enhancement of Food Safety Standards," The World Economy, Wiley Blackwell, vol. 31(4), pages 548-568, April.
    27. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    28. Mike W Peng, 2004. "Identifying the big question in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 99-108, March.
    29. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    30. Cox, Christopher, 1996. "Nonlinear quasi-likelihood models: applications to continuous proportions," Computational Statistics & Data Analysis, Elsevier, vol. 21(4), pages 449-461, April.
    31. Joseph LiPuma & Scott Newbert & Jonathan Doh, 2013. "The effect of institutional quality on firm export performance in emerging economies: a contingency model of firm age and size," Small Business Economics, Springer, vol. 40(4), pages 817-841, May.
    32. Hino, Hayiel, 2010. "Antecedents of supermarket formats’ adoption and usage: A study in the context of non-western customers," Journal of Retailing and Consumer Services, Elsevier, vol. 17(1), pages 61-72.
    33. Joseph Lipuma & Scott L. Newbert & Jonathan P. Doh, 2013. "The effect of institutional quality on firm export performance in emerging economies : a contingency model of firm age and size," Post-Print hal-02312662, HAL.
    34. Basu, S. & McKee, M. & Galea, G. & Stuckler, D., 2013. "Relationship of soft drink consumption to global overweight, obesity, and diabetes: A cross-national analysis of 75 countries," American Journal of Public Health, American Public Health Association, vol. 103(11), pages 2071-2077.
    35. Huang, Ying & Sternquist, Brenda, 2007. "Retailers' foreign market entry decisions: An institutional perspective," International Business Review, Elsevier, vol. 16(5), pages 613-629, October.
    36. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    37. David J. Ketchen & G. Tomas M. Hult & Stanley F. Slater, 2007. "Toward greater understanding of market orientation and the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 28(9), pages 961-964, September.
    38. Stefan Hirsch & Jan Schiefer, 2016. "What Causes Firm Profitability Variation in the EU Food Industry? A Redux of Classical Approaches of Variance Decomposition," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 79-92, January.
    39. Stefan Hirsch & Jan Schiefer & Adelina Gschwandtner & Monika Hartmann, 2014. "The Determinants of Firm Profitability Differences in EU Food Processing," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(3), pages 703-721, September.
    40. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    41. Klaus E. Meyer & Saul Estrin & Sumon Kumar Bhaumik & Mike W. Peng, 2009. "Institutions, resources, and entry strategies in emerging economies," Strategic Management Journal, Wiley Blackwell, vol. 30(1), pages 61-80, January.
    42. Reardon, Thomas & Timmer, C. Peter, 2007. "Transformation of Markets for Agricultural Output in Developing Countries Since 1950: How Has Thinking Changed?," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 55, pages 2807-2855, Elsevier.
    43. Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
    44. Heiman, Amir & Gordon, Ben & Zilberman, David, 2019. "Food beliefs and food supply chains: The impact of religion and religiosity in Israel," Food Policy, Elsevier, vol. 83(C), pages 363-369.
    45. Klaus E Meyer & Mike W Peng, 2005. "Probing theoretically into Central and Eastern Europe: transactions, resources, and institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(6), pages 600-621, November.
    46. Valentina Marano & Jean-Luc Arregle & Michael Hitt & Ettore Spadafora & Marc van Essen, 2016. "Home Country Institutions and the Internationalization-Performance Relationship : A Meta-Analytic Review," Post-Print hal-02313365, HAL.
    47. Thomas Reardon & Julio A. Berdegué, 2002. "The Rapid Rise of Supermarkets in Latin America: Challenges and Opportunities for Development," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 371-388, September.
    48. Henisz, Witold J, 2000. "The Institutional Environment for Multinational Investment," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(2), pages 334-364, October.
    49. Christopher J. Robertson & Andrew Watson, 2004. "Corruption and change: the impact of foreign direct investment," Strategic Management Journal, Wiley Blackwell, vol. 25(4), pages 385-396, April.
    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. Shufeng Simon Xiao & Yong Kyu Lew & Byung Il Park, 2019. "‘2R-Based View’ on the Internationalization of Service MNEs from Emerging Economies: Evidence from China," Management International Review, Springer, vol. 59(4), pages 643-673, August.
    2. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    3. Thomas Reardon & David Zilberman, 2022. "Symbiotic, Resilient, and Rapidly Transforming Food Supply Chains in LMICs: Supermarket and E-commerce Revolutions Helped by Wholesale and Logistics Co-pivoting," NBER Chapters, in: Risks in Agricultural Supply Chains, pages 13-28, National Bureau of Economic Research, Inc.
    4. Qi, Guoyou & Zou, Hailiang & Xie, Xuemei & Meng, Xiaohua & Fan, Tijun & Cao, Yuanhe, 2020. "Obedience or escape: Examining the contingency influences of corruption on firm exports," Journal of Business Research, Elsevier, vol. 106(C), pages 261-272.
    5. Niccolò Pisani & Joan Enric Ricart, 2018. "Offshoring Innovation to Emerging Countries: The Effects of IP Protection and Cultural Differences on Firms’ Decision to Augment Versus Exploit Home-Base-Knowledge," Management International Review, Springer, vol. 58(6), pages 871-909, December.
    6. Mario Kafouros & Murod Aliyev, 2016. "Institutions and Foreign Subsidiary Growth in Transition Economies: The Role of Intangible Assets and Capabilities," Journal of Management Studies, Wiley Blackwell, vol. 53(4), pages 580-607, June.
    7. Xie, Qunyong, 2017. "Firm age, marketization, and entry mode choices of emerging economy firms: Evidence from listed firms in China," Journal of World Business, Elsevier, vol. 52(3), pages 372-385.
    8. Egan Patrick J.W., 2013. "R&D in the periphery? Foreign direct investment, innovation, and institutional quality in developing countries," Business and Politics, De Gruyter, vol. 15(1), pages 1-32, April.
    9. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    10. Fuentelsaz, Lucio & Garrido, Elisabet & Maicas, Juan P., 2020. "The effect of informal and formal institutions on foreign market entry selection and performance," Journal of International Management, Elsevier, vol. 26(2).
    11. Lindner, Thomas & Muellner, Jakob & Puck, Jonas, 2016. "Cost of Capital in an International Context: Institutional Distance, Quality, and Dynamics," Journal of International Management, Elsevier, vol. 22(3), pages 234-248.
    12. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    13. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    14. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    15. George O. White & Jean J. Boddewyn & Tazeeb Rajwani & Thomas A. Hemphill, 2018. "Regulator Vulnerabilities to Political Pressures and Political Tie Intensity: The Moderating Effects of Regulatory and Political Distance," Management International Review, Springer, vol. 58(5), pages 743-769, October.
    16. Cho, Hyejin & Ahn, He Soung, 2017. "Stock payment and the effects of institutional and cultural differences: A study of shareholder value creation in cross-border M&As," International Business Review, Elsevier, vol. 26(3), pages 461-475.
    17. Reboul, E. & Guérin, I. & Nordman, C.J., 2021. "The gender of debt and credit: Insights from rural Tamil Nadu," World Development, Elsevier, vol. 142(C).
    18. Weber, Clarissa E. & Chahabadi, Dominik & Maurer, Indre, 2020. "Antecedents and performance effect of managerial misperception of institutional differences," Journal of World Business, Elsevier, vol. 55(1).
    19. Mike W. Peng & Joyce C. Wang & Nishant Kathuria & Jia Shen & Miranda J. Welbourne Eleazar, 2023. "Toward an institution-based paradigm," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 353-382, June.
    20. Caroline T Witte & Martijn J Burger & Elena I Ianchovichina & Enrico Pennings, 2017. "Dodging bullets: The heterogeneous effect of political violence on greenfield FDI," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 862-892, September.

    More about this item

    Statistics

    Access and download statistics

    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:wly:agribz:v:36:y:2020:i:3:p:453-481. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.