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Using the supermarket technology in Hong Kong as an example, the article shows that the transference of the retail technology from one market to another is highly dependent on the socio‐cultural environment. In effecting an international transfer a retailer may have to be satisfied with an incomplete transfer, proceed in a gradual, evolutionary process and maintain an adaptive interaction with the environment.

This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/EUM0000000000648. When citing the article, please cite: Ho-Fuk Lau, (1992), “Internationalization, Internalization, or a New Theory for Small, Low-technology Multinational Enterprise?”, European Journal of Marketing, Vol. 26 Iss: 10, pp. 17 - 31.

Results of this study confirms the contention that the theory of internalization is also applicable to small, low‐technology MNEs. But modifications are suggested when applying to small export oriented multinationals. The development of these firms relies more on soft technology than hard technology. Cultural affinity and geographical proximity are the most important location factors for foreign direct investment.

Uses a product‐oriented approach to examine consumer outshopping patterns in a large and densely polulated city — Hong Kong. Concentrates on one popular consumer product, the camera, as an example, and looks at the possible effects of different product forms and price combinations on outshopping patterns. Analyses the implications of consumer outshopping for the individual retailer, particularly with regard to the formation of channel strategies. Suggests that consumers' outshopping patterns are not only product specific, but are also influenced by product form and the price of that product.

There is an argument that the channel of distribution reflects the economic development of a country. China is a developing country. When supermarket technology was introduced to China in 1981, supermarkets were mainly serving visitors from overseas. When the economic environment improved during the 1990s, supermarkets in China shifted focus to the local community. The findings of this study showed that the nature of problems faced by supermarkets changed over time during the past 18 years. In the 1980s, most of the problems were related to technology transfer and the support from supplementary industries. In the 1990s, the problems were mainly related to competition and management issues. If China joins the WTO the Chinese government will speed up the development of the service industry. Supermarkets will then become a new power in the retailing industry in China. Multinational retailing giants will play a significant role in the technology transfer. However, their presence will also create tremendous pressure on local operators, forcing many inefficient ones out of the retailing scene.

Looks at consumer research in Greater China including Mainland China, Hong Kong and Taiwan. Maps out the contributions within this area and guides future research. Examines the state of the art over the 1979‐97 period, with particular emphasis on the topics that have been researched, the extent of the theory development in the field and the methodologies used in conducting research. Uses content analysis to review 75 relevant articles. Suggests that, while a considerable breadth of topics have been researched, there remains much to be done, there is further room for theoretical development in Chinese consumer behaviour studies; and the methodologies used need improvement and further refinement.