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Article
Publication date: 23 October 2018

Renata Maria Gomes, Jorge Carneiro and Luis Antonio Dib

The purpose of this paper is to identify patterns for the intra-market expansion of international branded retailers on a continent-sized emerging market using the network approach.

Abstract

Purpose

The purpose of this paper is to identify patterns for the intra-market expansion of international branded retailers on a continent-sized emerging market using the network approach.

Design/methodology/approach

A multiple-case study design of four foreign branded retailers that have expanded onto regional markets in Brazil is used.

Findings

The intra-market expansion process shares similarities with the cross-market expansion process; is influenced by the relationships of foreign branded retailers with local competitors and shopping mall firms; and market selection, mode of operation and store location decisions are interrelated and conjointly taken, instead of forming a three-stage process. Additionally, the importance of relationships with host market shopping malls firms is highlighted.

Research limitations/implications

This paper advances a conceptual model of the intra-market expansion process, which comprises a system of interrelated decisions – (regional) market selection, mode of operation and store location – influenced by several network effects.

Practical implications

Managers of foreign branded retail suffer from liability of foreignness when undertaking intra-market expansion. Although Brazil is a large market, the retail community is highly connected because of managers’ personal relationships. Brazilian shopping malls dominate suitable store locations, and represent a valuable source of knowledge and resources for the foreign branded retailer.

Originality/value

This paper addresses two under-researched aspects of international retail: branded retailers – manufacturers that develop brands and operate stores – and intra-market expansion (i.e. to geographic regions of a given foreign country). It also discusses the challenges of intra-market expansion in continent-sized emerging markets, with considerable regional diversity (culture, infrastructure and institutions).

Details

International Journal of Retail & Distribution Management, vol. 46 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 3 April 2014

Stacy T. Greening, Cameron Wild and Vera Caine

The current study's purpose is to examine, through a case study, a community health centre board's governance during an expansion period with particular attention to the…

Abstract

Purpose

The current study's purpose is to examine, through a case study, a community health centre board's governance during an expansion period with particular attention to the organizational and internal board relations that contribute to or inhibit expansion.

Design/methodology/approach

All board members on the slate during the expansion were invited to participate in one semi-structured interview. Administrative data (board documentation and correspondence) were also used to inform the study. Discourse analysis was used to analyze the data.

Findings

While board members agreed with the expansion they acknowledge that the expansion process should be examined. Board members identified missing board skill sets, comfort with governance and low organizational understanding as personal barriers to an enhanced process. External barriers included: absent decision support tools; documentation and information availability and historical decision making processes.

Research limitations/implications

Half the board members agreed to participate in the interviews. Of those declining, 30 percent cited difficulties during the expansion period as their rationale for withdrawing.

Originality/value

Findings add to: the limited publications regarding primary healthcare service expansion; and understanding expansion and volunteer board members' roles and their governance process during this time.

Details

International Journal of Health Care Quality Assurance, vol. 27 no. 3
Type: Research Article
ISSN: 0952-6862

Keywords

Article
Publication date: 28 March 2023

Li Tang, Zhen Xu and Xuanxuan Lyu

Sharing accommodation has lowered the threshold for digital entrepreneurship in the accommodation industry, prompting entrepreneurs to join this industry. However, digital…

Abstract

Purpose

Sharing accommodation has lowered the threshold for digital entrepreneurship in the accommodation industry, prompting entrepreneurs to join this industry. However, digital micro-entrepreneurs have been ignored by previous studies. To bridge the gap, this study aims to explore the impact of reputational asset (host popularity) and host’s human capital (entrepreneurial entry speed and managerial seniority) on host expansion grounded on the resource-based theory.

Design/methodology/approach

This study obtained crawler data by python from Airbnb.com, locking the time range to the past five years from 2013 to 2018 in Beijing of China. This study finally has 348 hosts’ balanced panel data to estimate the ordinary least squares regression model with fixed-year effect.

Findings

Results demonstrate that host popularity has a significant positive effect on host expansion. Furthermore, entrepreneurial entry speed strengthens the positive effect of host popularity on host expansion, whereas managerial seniority weakens the positive effect. The three-way interaction analysis reveals that the positive impact of host popularity on host expansion is strongest when managerial seniority is smaller and entrepreneurial entry speed is faster.

Research limitations/implications

The research has important implications to how the platforms interfere with the implementation of host expansion strategy and adds valuable insights to understand the transformation process of host expansion from nonprofessional to professional.

Originality/value

The research has expanded the literature related to the micro-entrepreneurship of the sharing economy and verified the application of resource-based theory under sharing economy.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 25 September 2023

Anchal Patil, Vipulesh Shardeo, Jitender Madaan, Ashish Dwivedi and Sanjoy Kumar Paul

This study aims to evaluate the dynamics between healthcare resource capacity expansion and disease spread. Further, the study estimates the resources required to respond to a…

Abstract

Purpose

This study aims to evaluate the dynamics between healthcare resource capacity expansion and disease spread. Further, the study estimates the resources required to respond to a pandemic appropriately.

Design/methodology/approach

This study adopts a system dynamics simulation and scenario analysis to experiment with the modification of the susceptible exposed infected and recovered (SEIR) model. The experiments evaluate diagnostic capacity expansion to identify suitable expansion plans and timelines. Afterwards, two popularly used forecasting tools, artificial neural network (ANN) and auto-regressive integrated moving average (ARIMA), are used to estimate the requirement of beds for a period when infection data became available.

Findings

The results from the study reflect that aggressive testing with isolation and integration of quarantine can be effective strategies to prevent disease outbreaks. The findings demonstrate that decision-makers must rapidly expand the diagnostic capacity during the first two weeks of the outbreak to support aggressive testing and isolation. Further, results confirm a healthcare resource deficit of at least two months for Delhi in the absence of these strategies. Also, the study findings highlight the importance of capacity expansion timelines by simulating a range of contact rates and disease infectivity in the early phase of the outbreak when various parameters are unknown. Further, it has been reflected that forecasting tools can effectively estimate healthcare resource requirements when pandemic data is available.

Practical implications

The models developed in the present study can be utilised by policymakers to suitably design the response plan. The decisions regarding how much diagnostics capacity is needed and when to expand capacity to minimise infection spread have been demonstrated for Delhi city. Also, the study proposed a decision support system (DSS) to assist the decision-maker in short- and long-term planning during the disease outbreak.

Originality/value

The study estimated the resources required for adopting an aggressive testing strategy. Several experiments were performed to successfully validate the robustness of the simulation model. The modification of SEIR model with diagnostic capacity increment, quarantine and testing block has been attempted to provide a distinct perspective on the testing strategy. The prevention of outbreaks has been addressed systematically.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 13 April 2023

Luis Miguel Bolivar, Cristóbal Casanueva and Ignacio Castro Abancéns

Multinational enterprises (MNEs) strive to expand into new markets either by exploiting their resource base or by gaining access to partner companies that own the required…

Abstract

Purpose

Multinational enterprises (MNEs) strive to expand into new markets either by exploiting their resource base or by gaining access to partner companies that own the required resources. Thus, companies face the compete–cooperate–coopete decision. The purpose of this study is to determine the effect of MNEs’ networks of interorganisational alliances, and their interaction with resource ownership, and market attractiveness, on the choice of international expansion modes, whether they are sole venture (competitive) or collaboration agreements (cooperative) or both (coopetitive).

Design/methodology/approach

A biprobit model is used to analyse more than 50,000 new international operations by 164 MNEs in a five-year window. A moderation analysis is carried out to reveal the interaction between network centrality, resource ownership and market size.

Findings

The results show the extent to which the competitive–collaborative contradictory forces attenuate each other in different market scenarios. This study’s contribution advances the resolution of the resource allocation dilemma by recognising the conditions for the selection of each expansion mode: sole venture, cooperation and coopetition.

Originality/value

Mainstream international business theory claims that firm’s own resources and transaction outcomes are generally sufficient to explain their international expansion decisions, whereas network and social capital theories focus on the role of relationships and network embeddedness. Both perspectives seem to neglect the fact that firms frequently develop both factors simultaneously. This study bridges these perspectives and reveals the interplay between resource ownership, alliance network centrality and market size for MNEs’ expansion mode choice.

Details

Multinational Business Review, vol. 31 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 23 September 2021

Xiaoxuan Li, Yue Wang, Miles M. Yang and Yanzhao Tang

This study explores the impact of owner chief executive officers' (CEO) narcissism on the exporting small to medium-sized enterprises' (SMEs) decision-making on the international…

1066

Abstract

Purpose

This study explores the impact of owner chief executive officers' (CEO) narcissism on the exporting small to medium-sized enterprises' (SMEs) decision-making on the international market expansion speed after their initial entry. Specifically, the authors use the mechanism of firms' international entrepreneurial orientation (IEO) to examine how owner CEO narcissism may influence SMEs' post-entry speed of internationalization (PSI), both directly and indirectly.

Design/methodology/approach

To test the hypotheses, the authors draw on data from a two-wave questionnaire and on archival export data from 291 Chinese exporting SMEs in three municipalities and 17 provinces from 2019 to 2020.

Findings

The results support the theoretical predictions that owner CEO narcissism shapes exporting SMEs' decisions on PSI, both directly and indirectly, through the mediation of firm-level IEO.

Originality/value

The study extends emerging research on the role of CEO narcissism in the upper echelons literature into the international marketing (IM) context. It also offers new insights into what drives exporting SMEs' IM decision-making from a psychological microfoundations perspective. Furthermore, the authors theoretically establish and empirically demonstrate the key role of a firm's IEO as a mediator to complement the existing literature's focus on the direct influence of CEO narcissism on firms' internationalization decisions.

Details

International Marketing Review, vol. 40 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 8 February 2013

Seng‐Su Tsang and Carol A. Finnegan

This study provides a robust test of a central question in franchising: which factors influence the timing of adopting the first franchised outlet? Using a novel methodology, the…

1280

Abstract

Purpose

This study provides a robust test of a central question in franchising: which factors influence the timing of adopting the first franchised outlet? Using a novel methodology, the purpose of this study is to examine the factors that accelerated or delayed the opening of the first franchisee outlet for the largest franchise chains in the USA.

Design/methodology/approach

The sample addresses a methodological shortcoming in traditional franchising literature. Using duration analysis, the paper captures the timing of the first franchise outlet for a retail concept. This allows us to capture the antecedents that explain the differences in timing between franchise systems.

Findings

By setting initial investment costs lower, the average time to attract the first franchisee is shorter. However, as franchisee net worth requirements rise, the time to attract the first franchisee is longer. Finally, franchisors tend to defer expansion via franchising in favor of managing their own outlets in resource rich industries.

Research limitations/implications

The dataset is limited to the largest US franchise systems.

Practical implications

This study suggests factors that would cause franchisors to decelerate or accelerate the initial franchise timing decision. Businesses time expansion based on industry size, outlet start‐up costs, and franchisee net worth.

Originality/value

This study provides the first examination of the firm and industry drivers affecting when a firm initiates franchising. This study uses rigorous empirical testing of franchising theoretical predictions using duration analysis.

Details

International Journal of Retail & Distribution Management, vol. 41 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 29 May 2019

Hui Sun, Yuning Wang and Jia Meng

The purpose of this paper is to develop a trading and pricing method of expansion option (EO) model to solve expansion problems of build-operate-transfer (BOT) freeway project.

Abstract

Purpose

The purpose of this paper is to develop a trading and pricing method of expansion option (EO) model to solve expansion problems of build-operate-transfer (BOT) freeway project.

Design/methodology/approach

This paper proposes an ex ante mechanism through trading the EO to avoid the transaction costs. By editing the paths generated from binomial option pricing model, this paper establishes an American real option binomial lattice model and evaluates the value of EO. Data are collected from Liaoning province in China and the model is practiced in the context of a BOT freeway in Liaoning province.

Findings

Supported by empirical evidence, this study finds out that there exists a minimum price at which the government can sell the EO and a maximum price that the private sector is willing to pay. When the minimum price is negative, the government should transfer the EO to the private sector free of charge to avoid the transaction costs. Otherwise, the government should sell the EO at a reasonable price to protect public interests.

Practical implications

The study can be used for the government to reducing the transaction costs. By using the trading EO model, the government can sell its share of the EO to the private sector to manage its resources efficiently.

Originality/value

This paper builds a trading EO model to solve expansion problems instead of renegotiations. In addition to reducing the transaction costs for the whole society, trading EO can also raise the respective payoffs of both public and private sectors. An EO trading framework and algorithm is further developed. It realized an American option model, making the owner can exercise the option whenever he wants. Thus, the whole model is adapted to best fit BOT highway practice.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 21 March 2019

Cencheng Zhao, Eunhwa Yang, Yiqian Nie and Justin D. Russo

This paper aims to provide organizations with a new tool to make decisions related to a facility (building) selection process. Traditionally, value engineering (VE) applies the…

Abstract

Purpose

This paper aims to provide organizations with a new tool to make decisions related to a facility (building) selection process. Traditionally, value engineering (VE) applies the Value = Function/Cost formula to evaluate the worth of a product. In this paper, the VE-based facility-selection approach is proposed, where the cost of a facility is expressed in net present value (NPV) as it contains the net expense of purchasing or leasing a building as well as the time value of money. Also, a method of quantifying functions and involved risks of different facility choices is proposed.

Design/methodology/approach

The framework of the VE-based facility-selection process is broken down into three steps: preparation, calculation/analysis and assessment. In the latter part of this paper, the authors share a sample analysis by illustrating the analysis and decision-making process when three hypothetical facility-selection options are available.

Findings

The sample analysis indicates that companies can get the lowest cost and risk while improving their functions to achieve the highest value by using the modified VE formula to drive an optimal option for company’s business expansion and facility-selection process.

Originality/value

This paper provides organizations with a strategic system and process to select proper facilities or buildings for business expansion. The VE approach suggested in this study can allow facility/real estate portfolio decision-makers to analyze financial and functional aspects of the facility at the same time and obtain the value coefficient when they choose a new facility from different options. Finally, they can select the best option, which has the highest value coefficient, given financial and functional considerations.

Details

Journal of Corporate Real Estate , vol. 21 no. 2
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 15 March 2018

Verónica Baena

This paper aims to identify the driving variables in the franchise decision to expand abroad. It also explores the effect of a set of factors on the intensity of the…

1249

Abstract

Purpose

This paper aims to identify the driving variables in the franchise decision to expand abroad. It also explores the effect of a set of factors on the intensity of the internationalization process pursued by franchise companies. To achieve this goal, the author considered the following variables: the role of management and franchising experience, brand awareness and the sector of activity (product versus service). The international franchise ratio and the size of the chain were also considered.

Design/methodology/approach

This study uses a quantitative approach applied to the Spanish franchise system, which occupies the second position in Europe in terms of the number of franchisee outlets (65,810) and the first position in Europe in terms of the number of franchisors (1,232). Moreover, in early 2016, a total of 302 Spanish chains were doing business in 137 foreign countries with 20,891 outlets established abroad. Data were obtained from secondary sources (i.e. the Spanish Franchise Association, the leading Spanish franchising Consultant Group, etc.) The most important international franchising associations were also considered. Multiple regression analyses were used to test the research hypotheses.

Findings

Results conclude that that franchisor’s brand awareness plays an important role in the decision of becoming a global franchise chain. In addition, the franchising experience, business orientation (product versus service), the international franchise ratio and the company size have significant impacts on the intensity of the internationalization process pursued by the franchisors.

Originality/value

The scant attention given to this topic has usually been examined from the US and British base and has focused on a reduced number of sectors of activity such as hospitality and manufacturing doing business in a single region (i.e. developed or emerging nations). To fill this gap, this work analyzes the international spread of the entire Spanish franchise system, which in early 2016 had presence in 137 foreign countries and operated in a total of 52 different sectors of activity.

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