IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01597629.html
   My bibliography  Save this paper

The Impact of Proximity on Resistance to Foreign Ventures: The Cases of India and Japan

Author

Listed:
  • Marie-Laure Baron

    (NIMEC - Normandie Innovation Marché Entreprise Consommation - UNICAEN - Université de Caen Normandie - NU - Normandie Université - ULH - Université Le Havre Normandie - NU - Normandie Université - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

  • Claire Capo

    (NIMEC - Normandie Innovation Marché Entreprise Consommation - UNICAEN - Université de Caen Normandie - NU - Normandie Université - ULH - Université Le Havre Normandie - NU - Normandie Université - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

Abstract

Over the years, a body of literature has developed that consistently shows how the liability of foreignness affects MNCs' performance. Institutional distance − regulatory, normative and cognitive − between the incomer and insiders has been identified as the likely source of the highest cost in doing business abroad. In this article, we draw on the existing literature but take the opposite perspective, looking instead at how various dimensions of proximity between local players increase MNC distance and foster local resistance. The study investigates two contexts and cases, India and Japan, at the time of foreign retailer entry and analyses the interplay between local proximity and local resistance. The analysis presents four dimensions of proximity, namely spatial proximity, relational proximity, identity proximity and inter-organizational proximity, which present the stiffest challenges to foreign retail ventures entering markets as newcomers.

Suggested Citation

  • Marie-Laure Baron & Claire Capo, 2017. "The Impact of Proximity on Resistance to Foreign Ventures: The Cases of India and Japan," Post-Print hal-01597629, HAL.
    • Handle: RePEc:hal:journl:hal-01597629
    DOI: 10.22439/cjas.v34i2.5307
    Note: View the original document on HAL open archive server: https://hal.science/hal-01597629
    as

    Download full text from publisher

    File URL: https://hal.science/hal-01597629/document
    Download Restriction: no
    File URL: https://libkey.io/10.22439/cjas.v34i2.5307?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. Belk, Russell W, 1988. "Possessions and the Extended Self," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 139-168, September.
    2. Hendrik Meyer-Ohle, 2003. "Innovation and Dynamics in Retailing," Palgrave Macmillan Books, in: Innovation and Dynamics in Japanese Retailing, chapter 1, pages 3-14, Palgrave Macmillan.
    3. Kozinets, Robert V, 2002. "Can Consumers Escape the Market? Emancipatory Illuminations from Burning Man," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(1), pages 20-38, June.
    4. Andre Torre & Alain Rallet, 2005. "Proximity and Localization," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 47-59.
    5. Zaheer, Srilata, 2002. "The liability of foreignness, redux: a commentary," Journal of International Management, Elsevier, vol. 8(3), pages 351-358.
    6. Olivier Bouba-Olga & Michel Grossetti, 2008. "Socio-économie de proximité," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(3), pages 311-328.
    7. Robert Salomon & Zheying Wu, 2012. "Institutional distance and local isomorphism strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(4), pages 343-367, May.
    8. Rohit Varman & Russell W. Belk, 2009. "Nationalism and Ideology in an Anticonsumption Movement," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(4), pages 686-700, December.
    9. Alex Hughes & Neil Wrigley & Martin Buttle, 2008. "Global production networks, ethical campaigning, and the embeddedness of responsible governance," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 345-367, May.
    10. Hendrik Meyer-Ohle, 2003. "Innovation and Dynamics in Japanese Retailing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-51065-4, December.
    11. Jan-Benedict E M Steenkamp & Rajeev Batra & Dana L Alden, 2003. "How perceived brand globalness creates brand value," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 53-65, January.
    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. Claire Capo & Odile Chanut, 2012. "Convenience ensued from proximity: a new analysis framework for Japanese distribution system [Quand la proximité crée la convenience : une grille de lecture du système de distribution japonais]," Post-Print hal-01597651, HAL.
    2. Claire Capo & Odile Chanut, 2013. "Convergence between French and Japanese Convenience Store Business Models," Post-Print hal-01773074, HAL.
    3. Claire Capo & Odile Chanut, 2015. "Supply Chain Organisation for Proximity Distribution: Comparison between French and Japanese Models," Post-Print hal-01767007, HAL.
    4. Karin Brondino-Pompeo, 2021. "Mapping spheres of exchange: a multidimensional approach to commoditization and singularization," AMS Review, Springer;Academy of Marketing Science, vol. 11(1), pages 81-95, June.
    5. Claire Capo & Odile Chanut, 2013. "Lecture des métiers de la vente directe à travers une grille d'analyse de la proximité," Post-Print hal-01742053, HAL.
    6. Olivier Bouba-Olga & Michel Grossetti & Marie Ferru, 2014. "How I met my partner: reconsidering proximities," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 6, pages 223-240, Edward Elgar Publishing.
    7. Marie Coris & Vincent Frigant & Jean-Bernard Layan & Damien Talbot, 2011. "Les dynamiques spatiales des activités productives," Post-Print hal-02385445, HAL.
    8. Rachael Gibson & Harald Bathelt, 2014. "Proximity relations and global knowledge flows: specialization and diffusion processes across capitalist varieties," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 9, pages 291-314, Edward Elgar Publishing.
    9. Donald R. Lehmann & Jeffrey R. Parker, 2017. "Disadoption," AMS Review, Springer;Academy of Marketing Science, vol. 7(1), pages 36-51, June.
    10. Davvetas, Vasileios & Diamantopoulos, Adamantios, 2017. "“Regretting your brand-self?” The moderating role of consumer-brand identification on consumer responses to purchase regret," Journal of Business Research, Elsevier, vol. 80(C), pages 218-227.
    11. Timo Mandler & Fabian Bartsch & C. Min Han, 2021. "Brand credibility and marketplace globalization: The role of perceived brand globalness and localness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1559-1590, October.
    12. Yi Xie & Siqing Peng & Daniel P. Hampson, 0. "Brand user imagery clarity (BUIC): conceptualization, measurement, and consequences," Journal of Brand Management, Palgrave Macmillan, vol. 0, pages 1-17.
    13. Sichtmann, Christina & Davvetas, Vasileios & Diamantopoulos, Adamantios, 2019. "The relational value of perceived brand globalness and localness," Journal of Business Research, Elsevier, vol. 104(C), pages 597-613.
    14. Eunyoung Choi & Kun Chang Lee, 2019. "Effect of Trust in Domain-Specific Information of Safety, Brand Loyalty, and Perceived Value for Cosmetics on Purchase Intentions in Mobile E-Commerce Context," Sustainability, MDPI, vol. 11(22), pages 1-24, November.
    15. Lee, Michael S.W. & Motion, Judith & Conroy, Denise, 2009. "Anti-consumption and brand avoidance," Journal of Business Research, Elsevier, vol. 62(2), pages 169-180, February.
    16. Strizhakova, Yuliya & Coulter, Robin A., 2013. "The “green” side of materialism in emerging BRIC and developed markets: The moderating role of global cultural identity," International Journal of Research in Marketing, Elsevier, vol. 30(1), pages 69-82.
    17. Damien Talbot, 2015. "Contrôles et proximités au sein de la supply chain aéronautique," Post-Print hal-02351969, HAL.
    18. Olivier Bouba-Olga & Michel Grossetti, 2015. "La métropolisation, horizon indépassable de la croissance économique ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(7), pages 117-144.
    19. Strizhakova, Yuliya & Coulter, Robin A. & Price, Linda L., 2008. "The meanings of branded products: A cross-national scale development and meaning assessment," International Journal of Research in Marketing, Elsevier, vol. 25(2), pages 82-93.
    20. Keith W. Glaister & Nigel Driffield & Yupu Lin, 2020. "Foreign Direct Investment to Africa: Is There a Colonial Legacy?," Management International Review, Springer, vol. 60(3), pages 315-349, June.

    More about this item

    Keywords

    proximity; Liability of foreignness; resistance; Asia; retail;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hal:journl:hal-01597629. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.