Problems encountered within international retail joint ventures: UK retailer case study evidence
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 11 September 2007
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.
Keywords
Citation
Owens, M. and Quinn, B. (2007), "Problems encountered within international retail joint ventures: UK retailer case study evidence", International Journal of Retail & Distribution Management, Vol. 35 No. 10, pp. 758-780. https://doi.org/10.1108/09590550710820667
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited