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Slobodan Velinov

DBA Graduate - 2018

Thesis title

Emerging market MNCs' strategy formulation in emerging economies: an empirical study in the retail industry


Leslie Szamosi
The global retail marketplace has shifted dramatically over the last decade. There has been a focal shift away from global retailers in developed markets moving to developing markets toward moves into emerging markets. Meanwhile, however, retail companies in emerging economies have outgrown their home markets and are now internationalizing, primarily by entering other emerging economies to expand their base and maintain long-term profitability. This is a blue-sky area in the literature and an expanding area of international practice. Purpose The purpose of this study is to understand how a MNC from an emerging economy transfers its strategy into other emerging economies. There is substantive academic literature covering strategy transfer from developed to developing or from developing to developed economies; however, how the emerging to emerging economies’ strategy transfers from a retail perspective remains unknown. Design/Methodology/Approach The methodology proposed is quantitative in nature. The key reason for choosing such methodology approach is the fact that topic of the strategy implementation is widely covered through academic literature and there is no need to start theory from scratch like in qualitative methodology, rather apply what we have. Findings This study’s findings show that in the strategy transfer process, the MNC will transfer strategies from its emerging home headquarters to its emerging country’s subsidiaries after examining strategic areas including physical and business distance, modes of market entry, entry barriers, corporate and social responsibility, store model transfer, price model transfer, assortment transfer, and private label transfer. Research limitations/implications The main research limitations of this study are its sample size, coverage of a specific market, and use of a targeted company. Practical implications The managerial implications of this study indicate that strategy transfer decision makers in emerging economies prioritize profit gains when considering strategy transfers and potential markets to enter. Physically close markets that decision makers have knowledge about will also influence other variables. Originality/value This study’s originality and value is related to its novel examination of how emerging economy MNCs transfer their strategies into other emerging economies, an area which has not been analysed in the literature to date. Keywords: retail, multinational companies (MNCs), developing economies, emerging economies, strategy transfer, corporate social responsibility (CSR).