Problems Encountered within International Retail Joint Ventures: UK Retailer Case Study Evidence

M owens, Barry Quinn

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

Purpose – The paper aims to investigate the problems encountered in retail international joint ventures (IJVs). It synthesizes and applies transaction cost economics and strategic management theories to help explain the dynamics within the international retail joint venture (IRJV) process. Design/methodology/approach – Applies a multiple case study approach based on a sample of UK-based retailers during the retail internationalisation process. Findings – Highlights the key problem areas encountered by retailers involved in IJV activity. Concludes that in contrast to production-driven joint venture activity, retailers appear to have a shorter and intensive adjustment period to effectively co-ordinate operational activity and bridge the corporate and behavioural differences between themselves and the partner. Research limitations/implications – Focuses on a sample of UK retail companies only. Given the intensive instantiation process, a predetermined approach may be more appropriate for retail firms to avoid problematic outcomes in IJV management. Practical implications – Retail companies may experience post formation risk in joint ventures, arising from partner resource limitations. Differences in management capability between the partners may lead to ineffective collaboration and poor operational performance. Originality/value – Addresses a previously neglected area of research and provides insights into the management of IRJV. Examines the relevance of key theoretical perspectives in relation to the problems encountered in IRJV activity.
LanguageEnglish
Pages758-780
JournalInternational Journal of Retail and Distribution Management
Volume35
Issue number10
DOIs
Publication statusPublished - 2007

Fingerprint

Retailers
Joint ventures
Retail
International joint ventures
Transaction cost economics
Retail internationalization
Design methodology
Management theory
Resources
Internationalization process
Multiple case study
Management capability
Strategic management
Business performance

Cite this

@article{2255be3af65147c5ab3ce437535513b4,
title = "Problems Encountered within International Retail Joint Ventures: UK Retailer Case Study Evidence",
abstract = "Purpose – The paper aims to investigate the problems encountered in retail international joint ventures (IJVs). It synthesizes and applies transaction cost economics and strategic management theories to help explain the dynamics within the international retail joint venture (IRJV) process. Design/methodology/approach – Applies a multiple case study approach based on a sample of UK-based retailers during the retail internationalisation process. Findings – Highlights the key problem areas encountered by retailers involved in IJV activity. Concludes that in contrast to production-driven joint venture activity, retailers appear to have a shorter and intensive adjustment period to effectively co-ordinate operational activity and bridge the corporate and behavioural differences between themselves and the partner. Research limitations/implications – Focuses on a sample of UK retail companies only. Given the intensive instantiation process, a predetermined approach may be more appropriate for retail firms to avoid problematic outcomes in IJV management. Practical implications – Retail companies may experience post formation risk in joint ventures, arising from partner resource limitations. Differences in management capability between the partners may lead to ineffective collaboration and poor operational performance. Originality/value – Addresses a previously neglected area of research and provides insights into the management of IRJV. Examines the relevance of key theoretical perspectives in relation to the problems encountered in IRJV activity.",
author = "M owens and Barry Quinn",
note = "Reference text: Alexander, N. (1995), “Expansion within the single European market: a motivational structure”, The International Review of Retail and Distribution and Consumer Research, Vol. 5 No. 4, pp. 472-87. Alexander, N. and Quinn, B. (2002), “International retail divestment”, International Journal of Retail & Distribution Management, Vol. 30 No. 2, pp. 112-25. Alexander, N., Quinn, B. and Cairns, P. (2005), “International retail divestment activity”, International Journal of Retail & Distribution Management, Vol. 33 No. 1, pp. 5-22. Bianchi, C. and Arnold, S. (2004), “An institutional perspective on retail internationalisation success: home depot in Chile”, The International Review of Retail, Distribution and Consumer Research, Vol. 14 No. 2, pp. 149-69. Buchel, B. (2000), “Framework of joint venture development: theory building through qualitative research”, Journal of Management Studies, Vol. 37 No. 5, pp. 637-61. Burt, S., Dawson, J. and Sparks, L. (2003), “Failure in international retailing: research propositions”, International Review of Retail and Distribution and Consumer Research, Vol. 13 No. 4, pp. 355-73. Burt, S., Davies, K., McAuley, A. and Sparks, L. (2005), “Retail internationalisation: from formats to implants”, European Management Journal, Vol. 23 No. 2, pp. 195-202. Chadee, D.D. (2002), “Foreign ownership control of service equity joint ventures in China”, International Journal of Service Industry Management, Vol. 13 No. 2, pp. 181-201. Choi, C.B. and Beamish, P.W. (2004), “Split management control and international joint venture performance”, Journal of International Business Studies, Vol. 35 No. 3, pp. 201-15. IJRDM 35,10 776 Clarke, I. and Rimmer, P. (1997), “The anatomy of retail internationalisation: Daimaru’s decision to invest in Melbourne, Australia”, The Service Industries Journal, Vol. 17 No. 3, pp. 361-82. Coe, N.M. (2004), “The internationalisation/globalisation of retailing: towards an economic-geographical research agenda”, Environment & Planning A, Vol. 36 No. 9, pp. 1571-94. Corporate Intelligence Group (1996), UK Retailers’ Cross Border Activity, The Corporate Intelligence Group, London. Das, T.K. (2006), “Time-span and risk in partner opportunism in strategic alliances”, Journal of Managerial Psychology, Vol. 19 No. 8, pp. 744-59. Davies, K. and Ferguson, F. (1995), “The international activities of Japanese retailers”, The Service Industries Journal, Vol. 15 No. 4, pp. 97-117. Dawson, J. (1994), “The internationalisation of retailing operations”, Journal of Marketing Management, Vol. 10, pp. 267-82. Demirbag, M. and Mirza, H. (2000), “Factors affecting international joint venture success: an empirical analysis of foreign-local partner relationships and performance in joint ventures in Turkey”, International Business Review, Vol. 9, pp. 1-35. Doherty, A.M. (1999), “Explaining international retailers’ market entry mode strategy, internationalisation theory, agency theory and the importance of information asymmetry”, The International Review of Retail Distribution and Consumer Research, Vol. 9 No. 4, pp. 379-402. Douma, M.U., Bilderbeek, J., Idenburg, P. and Looise, J.K. (2000), “Strategic alliances: managing the dynamics of fit”, Long Range Planning, Vol. 33, pp. 579-98. Evans, J., Treadgold, A. and Mavando, F.T. (2000), “Psychic distance and the performance of international retailers: a suggested theoretical framework”, International Marketing Review, Vol. 17 Nos 4/5, pp. 373-91. Faulkner, D.O. and de Rond, M. (2000), Cooperative Strategy: Economic, Business and Organizational Issues, Oxford University Press, Oxford. Gamble, J. (2003), “Transferring business practices from the United Kingdom to China: the limits and potential for convergence”, International Journal of Human Resource Management, Vol. 14 No. 3, pp. 369-87. Geringer, J.M. (1991), “Strategic determinants of partner selection criteria in international joint ventures”, Journal of International Business Studies, Vol. 22 No. 1, pp. 41-62. Geringer, J.M. and Herbet, L.H. (1989), “Control and performance of international joint ventures”, Journal of International Business Studies, Vol. 20, pp. 235-54. Gielens, G. and Dekimpe, M.G. (2001), “Do international entry decisions of retail chains matter in the long run?”, International Journal of Research in Marketing, Vol. 18 No. 3, pp. 235-59. Gill, J. and Butler, R.J. (2003), “Managing instability in cross-cultural alliances”, Long Range Planning, Vol. 36 No. 10, pp. 543-663. Glaister, K.W. (2004), “The rationale for international equity joint ventures”, European Management Journal, Vol. 22 No. 5, pp. 493-507. Glaister, K.W. and Buckley, P. (1996), “Strategic motives for international alliance formation”, Journal of Management Studies, Vol. 33, pp. 301-32. Harrigan, K.R. (1988a), “Strategic alliances and partner asymmetries”, Management International Review, Vol. 28, pp. 53-72. Harrigan, K.R. (1988b), “Joint ventures and competitive strategy”, Strategic Management Journal, Vol. 9, pp. 141-58. Problems encountered within IRJVs 777 Hennart, J.F., Kim, D. and Zeng, M. (1998), “The impact of joint venture status on the longevity of Japanese stakes in US manufacturing affiliates”, Organisation Science, Vol. 9 No. 3, pp. 382-95. Hill, R.C. and Hellriegel, D. (1994), “Critical contingencies in joint venture management: some lessons from managers”, Organization Science, Vol. 5, pp. 594-608. Hollander, S.H. (1970), Multinational Retailing, Michigan State University, Dearborn, MI. Hyder, A.S. and Ghauri, P.N. (2000), “Managing international joint venture relationships: a longitudinal perspective”, Industrial Marketing Management, Vol. 29, pp. 205-18. Inkpen, A.C. (2000), “A note on the dynamics of learning alliances: competition, co-operative and relative scope”, Strategic Management Journal, Vol. 21, pp. 775-9. Johnson, J.L., Cullen, J.B. and Sakano, J. (1996), “Opportunistic tendencies in IJVs with the Japanese: the effects of culture, shared decision-making and relationship age”, International Executive, Vol. 38, pp. 79-94. Kale, P., Dyer, J. and Singh, H. (2001), “Value creation and success in strategic alliances: alliancing skills and the role of alliance structure and systems”, European Management Journal, Vol. 19 No. 5, pp. 463-71. Kogut, B. (1988), “Joint ventures: theoretical and empirical perspectives”, Strategic Management Journal, Vol. 9, pp. 319-32. Larke, R. (2003), “International retailing in Japan”, in Dawson, J., Mukayama, M., Song, C. and Larke, R. (Eds), The Internationalization of Retailing in Asia, Curzon, London, pp. 7-34. Lindblom, T. and Rimstedt, A. (2004), “Retail integration strategies in the EU: Scandinavian grocery retailing”, International Review of Retail, Distribution, and Consumer Research, Vol. 14 No. 2, pp. 171-97. Luo, Y. (2004), “Transactional characteristics, institutional environment and joint venture contracts”, Journal of International Business Studies, Vol. 12 No. 3, pp. 1-22. Lyles, M.A. and Salk, J.E. (1996), “Knowledge acquisition from foreign parents in international joint ventures: an empirical examination in the Hungarian context”, Journal of International Business Studies, Vol. 27, pp. 877-904. Mohr, A. and Puck, J. (2005), “Managing functional diversity to improve the performance of international joint ventures”, Long Range Planning, Vol. 38, pp. 163-82. Nakamura, M. (2005), “Joint venture instability, learning and the relative power of the parent firms”, International Business Review, Vol. 14, pp. 465-93. Nielsen, B. (2003), “An empirical investigation of the drivers of international strategic alliance formation”, European Management Journal, Vol. 21 No. 3, pp. 301-22. Nooteboom, B. (1999), Interfirm Alliances, Routledge, London. Palmer, M. (2004), “International restructuring and divestment: the experience of Tesco”, Journal of Marketing Management, Vol. 20, pp. 1075-105. Palmer, M. (2005), “Crossing threshold periods in the retail life cycle: insights from Wal-Mart International”, European Management Journal, Vol. 23 No. 6, pp. 717-29. Palmer, M. (2006), “International retail joint venture learning”, The Service Industries Journal, Vol. 26 No. 2, pp. 165-87. Palmer, M. and Owens, M. (2006), “New directions for international retail joint venture research”, International Review of Retail, Distribution and Consumer Research, Vol. 16 No. 2, pp. 159-79. IJRDM 35,10 778 Palmer, M. and Quinn, B. (2005a), “An exploratory framework for analysing international retail learning”, International Review of Retail, Distribution and Consumer Research, Vol. 15 No. 1, pp. 27-52. Palmer, M. and Quinn, B. (2005b), “Stakeholder relationships in an international retailing context: an investment bank perspective”, European Journal of Marketing, Vol. 39 Nos 9/10, pp. 1096-117. Parkhe, A. (1993a), “Messy research, methodological predispositions and theory development in international joint ventures”, Academy of Management Review, Vol. 8 No. 2, pp. 227-68. Parkhe, A. (1993b), “Strategic alliance structuring; a game theoretic and transaction cost examination of interfirm cooperation”, Academy of Management Journal, Vol. 18, pp. 794-829. Patton, M.Q. (1990), Qualitative Evaluation and Research Methods, Sage, Thousand Oaks, CA. Picot-Coupey, K. (2006), “Determinants of international retail operation mode choice: towards a conceptual framework based on evidence from French specialised retail chains”, International Review of Retail, Distribution and Consumer Research, Vol. 16 No. 2, pp. 215-37. Quinn, B. and Doherty, A.M. (2000), “Power and control in international franchising: evidence from theory and practice”, International Marketing Review, Vol. 17 Nos 4/5, pp. 354-72. Retail Intelligence (2001), Cross Border Retailing, Retail Intelligence, London. Reus, T.H. and Ritchie, W.J. (2004), “Inter-partner, parent, and environmental factors influencing the operation of international joint ventures: 15 years of research”, Management International Review, Vol. 44 No. 4, pp. 369-95. Robinson, T., Clarke-Hill, C.M. and Bailey, J. (1998), “Skills and competence transfers in European retail alliances: a comparison between alliances and joint ventures”, European Business Review, Vol. 98 No. 6, pp. 300-10. Robson, M.J., Leonidou, L.C. and Katiskeas, C.S. (2002), “Factors influencing international joint venture performance: theoretical perspectives, assessment and future directions”, Management International Review, Vol. 42 No. 4, pp. 385-418. Rugman, A. and Girod, S. (2003), “Retail multinationals and globalisation: the evidence is regional”, European Management Journal, Vol. 21 No. 1, pp. 24-37. Shackleton, R. (1996), “collisions of corporate culture: UK food retail investment in the USA”, unpublished PhD thesis, Department of Geography, University of Southampton, Southampton. Shackleton, R. (1998), “Exploring corporate culture and strategy: sainsbury at home and abroad during the early to mid 1990s”, Environment and Planning A, Vol. 30, pp. 921-40. Sparks, L. (1995), “Reciprocal retail internationalisation: the Southland Corporation, Ito-Yokado and 7-Eleven convenience stores”, The Service Industries Journal, Vol. 15 No. 4, pp. 57-96. Treadgold, A. and Davies, R.L. (1988), The Internationalisation of Retailing, Longman, Harlow. Wang, S. (2003), “The internationalisation of retailing in China”, in Dawson, J., Mukayama, M., Song, C. and Larke, R. (Eds), The Internationalization of Retailing in Asia, Curzon, London, pp. 7-34. Williams, D.E. (1992), “Motives for retailer internationalisation: their impact, structure and implications”, Journal of Marketing Management, Vol. 8, pp. 269-85. Williamson, O.E. (1985), The Economic Institutions of Capitalism, The Free Press, New York, NY. Wong, M.M.L. (1998), “Motives of Hong-Kong Japanese international joint ventures in retailing”, International Journal of Retail and Distribution Management, Vol. 26 No. 1, pp. 4-12. Problems encountered within IRJVs 779 Wrigley, N. (2000a), “Strategic market behaviour in the internationalisation of food retailing: interpreting the 3rd wave of Sainsbury US diversification”, European Journal of Marketing, Vol. 34, pp. 891-918. Wrigley, N. (2000b), “The globalisation of retail capital: themes from economic geography”, in Clarke, G., Gertler, M. and Feldman, M. (Eds), Handbook of Economic Geography, Oxford University Press, London. Wrigley, N., Coe, N. and Curragh, A. (2005), “Globalizing retail: conceptualizing the distribution-based TNC”, Progress in Human Geography, Vol. 29, pp. 437-57. Yan, A. and Luo, Y. (2001), International Joint Ventures: Theory and Practice, ME Sharpe, New York, NY. Yin, R.K. (1994), Case Study Research: Design and Methods, 2nd ed., Applied Social Research Methods Series,Vol. 34, Sage, Thousand Oaks, CA.",
year = "2007",
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language = "English",
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journal = "International Journal of Retail and Distribution Management",
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N1 - Reference text: Alexander, N. (1995), “Expansion within the single European market: a motivational structure”, The International Review of Retail and Distribution and Consumer Research, Vol. 5 No. 4, pp. 472-87. Alexander, N. and Quinn, B. (2002), “International retail divestment”, International Journal of Retail & Distribution Management, Vol. 30 No. 2, pp. 112-25. Alexander, N., Quinn, B. and Cairns, P. (2005), “International retail divestment activity”, International Journal of Retail & Distribution Management, Vol. 33 No. 1, pp. 5-22. Bianchi, C. and Arnold, S. (2004), “An institutional perspective on retail internationalisation success: home depot in Chile”, The International Review of Retail, Distribution and Consumer Research, Vol. 14 No. 2, pp. 149-69. Buchel, B. (2000), “Framework of joint venture development: theory building through qualitative research”, Journal of Management Studies, Vol. 37 No. 5, pp. 637-61. Burt, S., Dawson, J. and Sparks, L. (2003), “Failure in international retailing: research propositions”, International Review of Retail and Distribution and Consumer Research, Vol. 13 No. 4, pp. 355-73. Burt, S., Davies, K., McAuley, A. and Sparks, L. (2005), “Retail internationalisation: from formats to implants”, European Management Journal, Vol. 23 No. 2, pp. 195-202. Chadee, D.D. (2002), “Foreign ownership control of service equity joint ventures in China”, International Journal of Service Industry Management, Vol. 13 No. 2, pp. 181-201. Choi, C.B. and Beamish, P.W. (2004), “Split management control and international joint venture performance”, Journal of International Business Studies, Vol. 35 No. 3, pp. 201-15. IJRDM 35,10 776 Clarke, I. and Rimmer, P. (1997), “The anatomy of retail internationalisation: Daimaru’s decision to invest in Melbourne, Australia”, The Service Industries Journal, Vol. 17 No. 3, pp. 361-82. Coe, N.M. (2004), “The internationalisation/globalisation of retailing: towards an economic-geographical research agenda”, Environment & Planning A, Vol. 36 No. 9, pp. 1571-94. Corporate Intelligence Group (1996), UK Retailers’ Cross Border Activity, The Corporate Intelligence Group, London. Das, T.K. (2006), “Time-span and risk in partner opportunism in strategic alliances”, Journal of Managerial Psychology, Vol. 19 No. 8, pp. 744-59. Davies, K. and Ferguson, F. (1995), “The international activities of Japanese retailers”, The Service Industries Journal, Vol. 15 No. 4, pp. 97-117. Dawson, J. (1994), “The internationalisation of retailing operations”, Journal of Marketing Management, Vol. 10, pp. 267-82. Demirbag, M. and Mirza, H. (2000), “Factors affecting international joint venture success: an empirical analysis of foreign-local partner relationships and performance in joint ventures in Turkey”, International Business Review, Vol. 9, pp. 1-35. Doherty, A.M. (1999), “Explaining international retailers’ market entry mode strategy, internationalisation theory, agency theory and the importance of information asymmetry”, The International Review of Retail Distribution and Consumer Research, Vol. 9 No. 4, pp. 379-402. Douma, M.U., Bilderbeek, J., Idenburg, P. and Looise, J.K. (2000), “Strategic alliances: managing the dynamics of fit”, Long Range Planning, Vol. 33, pp. 579-98. Evans, J., Treadgold, A. and Mavando, F.T. (2000), “Psychic distance and the performance of international retailers: a suggested theoretical framework”, International Marketing Review, Vol. 17 Nos 4/5, pp. 373-91. Faulkner, D.O. and de Rond, M. (2000), Cooperative Strategy: Economic, Business and Organizational Issues, Oxford University Press, Oxford. Gamble, J. (2003), “Transferring business practices from the United Kingdom to China: the limits and potential for convergence”, International Journal of Human Resource Management, Vol. 14 No. 3, pp. 369-87. Geringer, J.M. (1991), “Strategic determinants of partner selection criteria in international joint ventures”, Journal of International Business Studies, Vol. 22 No. 1, pp. 41-62. Geringer, J.M. and Herbet, L.H. (1989), “Control and performance of international joint ventures”, Journal of International Business Studies, Vol. 20, pp. 235-54. Gielens, G. and Dekimpe, M.G. (2001), “Do international entry decisions of retail chains matter in the long run?”, International Journal of Research in Marketing, Vol. 18 No. 3, pp. 235-59. Gill, J. and Butler, R.J. (2003), “Managing instability in cross-cultural alliances”, Long Range Planning, Vol. 36 No. 10, pp. 543-663. Glaister, K.W. (2004), “The rationale for international equity joint ventures”, European Management Journal, Vol. 22 No. 5, pp. 493-507. Glaister, K.W. and Buckley, P. (1996), “Strategic motives for international alliance formation”, Journal of Management Studies, Vol. 33, pp. 301-32. Harrigan, K.R. (1988a), “Strategic alliances and partner asymmetries”, Management International Review, Vol. 28, pp. 53-72. Harrigan, K.R. (1988b), “Joint ventures and competitive strategy”, Strategic Management Journal, Vol. 9, pp. 141-58. Problems encountered within IRJVs 777 Hennart, J.F., Kim, D. and Zeng, M. (1998), “The impact of joint venture status on the longevity of Japanese stakes in US manufacturing affiliates”, Organisation Science, Vol. 9 No. 3, pp. 382-95. Hill, R.C. and Hellriegel, D. (1994), “Critical contingencies in joint venture management: some lessons from managers”, Organization Science, Vol. 5, pp. 594-608. Hollander, S.H. (1970), Multinational Retailing, Michigan State University, Dearborn, MI. Hyder, A.S. and Ghauri, P.N. (2000), “Managing international joint venture relationships: a longitudinal perspective”, Industrial Marketing Management, Vol. 29, pp. 205-18. Inkpen, A.C. (2000), “A note on the dynamics of learning alliances: competition, co-operative and relative scope”, Strategic Management Journal, Vol. 21, pp. 775-9. Johnson, J.L., Cullen, J.B. and Sakano, J. (1996), “Opportunistic tendencies in IJVs with the Japanese: the effects of culture, shared decision-making and relationship age”, International Executive, Vol. 38, pp. 79-94. Kale, P., Dyer, J. and Singh, H. (2001), “Value creation and success in strategic alliances: alliancing skills and the role of alliance structure and systems”, European Management Journal, Vol. 19 No. 5, pp. 463-71. Kogut, B. (1988), “Joint ventures: theoretical and empirical perspectives”, Strategic Management Journal, Vol. 9, pp. 319-32. Larke, R. (2003), “International retailing in Japan”, in Dawson, J., Mukayama, M., Song, C. and Larke, R. (Eds), The Internationalization of Retailing in Asia, Curzon, London, pp. 7-34. Lindblom, T. and Rimstedt, A. (2004), “Retail integration strategies in the EU: Scandinavian grocery retailing”, International Review of Retail, Distribution, and Consumer Research, Vol. 14 No. 2, pp. 171-97. Luo, Y. (2004), “Transactional characteristics, institutional environment and joint venture contracts”, Journal of International Business Studies, Vol. 12 No. 3, pp. 1-22. Lyles, M.A. and Salk, J.E. (1996), “Knowledge acquisition from foreign parents in international joint ventures: an empirical examination in the Hungarian context”, Journal of International Business Studies, Vol. 27, pp. 877-904. Mohr, A. and Puck, J. (2005), “Managing functional diversity to improve the performance of international joint ventures”, Long Range Planning, Vol. 38, pp. 163-82. Nakamura, M. (2005), “Joint venture instability, learning and the relative power of the parent firms”, International Business Review, Vol. 14, pp. 465-93. Nielsen, B. (2003), “An empirical investigation of the drivers of international strategic alliance formation”, European Management Journal, Vol. 21 No. 3, pp. 301-22. Nooteboom, B. (1999), Interfirm Alliances, Routledge, London. Palmer, M. (2004), “International restructuring and divestment: the experience of Tesco”, Journal of Marketing Management, Vol. 20, pp. 1075-105. Palmer, M. (2005), “Crossing threshold periods in the retail life cycle: insights from Wal-Mart International”, European Management Journal, Vol. 23 No. 6, pp. 717-29. Palmer, M. (2006), “International retail joint venture learning”, The Service Industries Journal, Vol. 26 No. 2, pp. 165-87. Palmer, M. and Owens, M. (2006), “New directions for international retail joint venture research”, International Review of Retail, Distribution and Consumer Research, Vol. 16 No. 2, pp. 159-79. IJRDM 35,10 778 Palmer, M. and Quinn, B. (2005a), “An exploratory framework for analysing international retail learning”, International Review of Retail, Distribution and Consumer Research, Vol. 15 No. 1, pp. 27-52. Palmer, M. and Quinn, B. (2005b), “Stakeholder relationships in an international retailing context: an investment bank perspective”, European Journal of Marketing, Vol. 39 Nos 9/10, pp. 1096-117. Parkhe, A. (1993a), “Messy research, methodological predispositions and theory development in international joint ventures”, Academy of Management Review, Vol. 8 No. 2, pp. 227-68. Parkhe, A. (1993b), “Strategic alliance structuring; a game theoretic and transaction cost examination of interfirm cooperation”, Academy of Management Journal, Vol. 18, pp. 794-829. Patton, M.Q. (1990), Qualitative Evaluation and Research Methods, Sage, Thousand Oaks, CA. Picot-Coupey, K. (2006), “Determinants of international retail operation mode choice: towards a conceptual framework based on evidence from French specialised retail chains”, International Review of Retail, Distribution and Consumer Research, Vol. 16 No. 2, pp. 215-37. Quinn, B. and Doherty, A.M. (2000), “Power and control in international franchising: evidence from theory and practice”, International Marketing Review, Vol. 17 Nos 4/5, pp. 354-72. Retail Intelligence (2001), Cross Border Retailing, Retail Intelligence, London. Reus, T.H. and Ritchie, W.J. (2004), “Inter-partner, parent, and environmental factors influencing the operation of international joint ventures: 15 years of research”, Management International Review, Vol. 44 No. 4, pp. 369-95. Robinson, T., Clarke-Hill, C.M. and Bailey, J. (1998), “Skills and competence transfers in European retail alliances: a comparison between alliances and joint ventures”, European Business Review, Vol. 98 No. 6, pp. 300-10. Robson, M.J., Leonidou, L.C. and Katiskeas, C.S. (2002), “Factors influencing international joint venture performance: theoretical perspectives, assessment and future directions”, Management International Review, Vol. 42 No. 4, pp. 385-418. Rugman, A. and Girod, S. (2003), “Retail multinationals and globalisation: the evidence is regional”, European Management Journal, Vol. 21 No. 1, pp. 24-37. Shackleton, R. (1996), “collisions of corporate culture: UK food retail investment in the USA”, unpublished PhD thesis, Department of Geography, University of Southampton, Southampton. Shackleton, R. (1998), “Exploring corporate culture and strategy: sainsbury at home and abroad during the early to mid 1990s”, Environment and Planning A, Vol. 30, pp. 921-40. Sparks, L. (1995), “Reciprocal retail internationalisation: the Southland Corporation, Ito-Yokado and 7-Eleven convenience stores”, The Service Industries Journal, Vol. 15 No. 4, pp. 57-96. Treadgold, A. and Davies, R.L. (1988), The Internationalisation of Retailing, Longman, Harlow. Wang, S. (2003), “The internationalisation of retailing in China”, in Dawson, J., Mukayama, M., Song, C. and Larke, R. (Eds), The Internationalization of Retailing in Asia, Curzon, London, pp. 7-34. Williams, D.E. (1992), “Motives for retailer internationalisation: their impact, structure and implications”, Journal of Marketing Management, Vol. 8, pp. 269-85. Williamson, O.E. (1985), The Economic Institutions of Capitalism, The Free Press, New York, NY. Wong, M.M.L. (1998), “Motives of Hong-Kong Japanese international joint ventures in retailing”, International Journal of Retail and Distribution Management, Vol. 26 No. 1, pp. 4-12. Problems encountered within IRJVs 779 Wrigley, N. (2000a), “Strategic market behaviour in the internationalisation of food retailing: interpreting the 3rd wave of Sainsbury US diversification”, European Journal of Marketing, Vol. 34, pp. 891-918. Wrigley, N. (2000b), “The globalisation of retail capital: themes from economic geography”, in Clarke, G., Gertler, M. and Feldman, M. (Eds), Handbook of Economic Geography, Oxford University Press, London. Wrigley, N., Coe, N. and Curragh, A. (2005), “Globalizing retail: conceptualizing the distribution-based TNC”, Progress in Human Geography, Vol. 29, pp. 437-57. Yan, A. and Luo, Y. (2001), International Joint Ventures: Theory and Practice, ME Sharpe, New York, NY. Yin, R.K. (1994), Case Study Research: Design and Methods, 2nd ed., Applied Social Research Methods Series,Vol. 34, Sage, Thousand Oaks, CA.

PY - 2007

Y1 - 2007

N2 - Purpose – The paper aims to investigate the problems encountered in retail international joint ventures (IJVs). It synthesizes and applies transaction cost economics and strategic management theories to help explain the dynamics within the international retail joint venture (IRJV) process. Design/methodology/approach – Applies a multiple case study approach based on a sample of UK-based retailers during the retail internationalisation process. Findings – Highlights the key problem areas encountered by retailers involved in IJV activity. Concludes that in contrast to production-driven joint venture activity, retailers appear to have a shorter and intensive adjustment period to effectively co-ordinate operational activity and bridge the corporate and behavioural differences between themselves and the partner. Research limitations/implications – Focuses on a sample of UK retail companies only. Given the intensive instantiation process, a predetermined approach may be more appropriate for retail firms to avoid problematic outcomes in IJV management. Practical implications – Retail companies may experience post formation risk in joint ventures, arising from partner resource limitations. Differences in management capability between the partners may lead to ineffective collaboration and poor operational performance. Originality/value – Addresses a previously neglected area of research and provides insights into the management of IRJV. Examines the relevance of key theoretical perspectives in relation to the problems encountered in IRJV activity.

AB - Purpose – The paper aims to investigate the problems encountered in retail international joint ventures (IJVs). It synthesizes and applies transaction cost economics and strategic management theories to help explain the dynamics within the international retail joint venture (IRJV) process. Design/methodology/approach – Applies a multiple case study approach based on a sample of UK-based retailers during the retail internationalisation process. Findings – Highlights the key problem areas encountered by retailers involved in IJV activity. Concludes that in contrast to production-driven joint venture activity, retailers appear to have a shorter and intensive adjustment period to effectively co-ordinate operational activity and bridge the corporate and behavioural differences between themselves and the partner. Research limitations/implications – Focuses on a sample of UK retail companies only. Given the intensive instantiation process, a predetermined approach may be more appropriate for retail firms to avoid problematic outcomes in IJV management. Practical implications – Retail companies may experience post formation risk in joint ventures, arising from partner resource limitations. Differences in management capability between the partners may lead to ineffective collaboration and poor operational performance. Originality/value – Addresses a previously neglected area of research and provides insights into the management of IRJV. Examines the relevance of key theoretical perspectives in relation to the problems encountered in IRJV activity.

U2 - 10.1108/09590550710820667

DO - 10.1108/09590550710820667

M3 - Article

VL - 35

SP - 758

EP - 780

JO - International Journal of Retail and Distribution Management

T2 - International Journal of Retail and Distribution Management

JF - International Journal of Retail and Distribution Management

SN - 0959-0552

IS - 10

ER -