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Journal cover: International Journal of Retail & Distribution Management

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Online from: 1973

Subject Area: Industry and Public Sector Management

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Spillover effects of foreign hypermarkets on domestic suppliers in Malaysia


Document Information:
Title:Spillover effects of foreign hypermarkets on domestic suppliers in Malaysia
Author(s):Shivee Ranjanee Kaliappan, (Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia, Serdang, Malaysia), Rokiah Alavi, (Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia), Kalthom Abdullah, (Department of Business Administration, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia), Muhammad Arif Zakaullah, (Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia)
Citation:Shivee Ranjanee Kaliappan, Rokiah Alavi, Kalthom Abdullah, Muhammad Arif Zakaullah, (2009) "Spillover effects of foreign hypermarkets on domestic suppliers in Malaysia", International Journal of Retail & Distribution Management, Vol. 37 Iss: 3, pp.226 - 249
Keywords:Globalization, Hypermarkets, Malaysia, Retailing
Article type:Research paper
DOI:10.1108/09590550910941508 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

Purpose – Since the mid-1990s, there has been a rapid expansion of large-scale foreign retailers in many countries across Southeast Asia, Central Europe and Latin America. This emerging trend has triggered a number of research interests on the issue of retail globalization. The research aims to consider the entry of foreign hypermarkets in Malaysia and their impact on the development and growth of domestic suppliers and manufacturers.

Design/methodology/approach – This study uses both primary and secondary data. Secondary data were drawn from industry sources which included government departments, economic reports, retailing magazines and companies, web sites. Meanwhile, primary data are collected using mail survey questionnaire and face-to-face interviews.

Findings – The findings of this study indicate that foreign hypermarkets play a very important role in the development and growth of the domestic suppliers via backward linkages. The main forms of linkages are product supply, informational linkages, assistance with inventory management, technical support and quality assurance and procurement systems. A majority of the firms indicated that they benefited substantially from the presence of foreign hypermarkets; however, they also face several challenges brought about by imposition of several unfair terms and procurement policy.

Originality/value – The findings are largely derived from the experience encountered by domestic firms who participated in the survey. Thus, it is believed that their views could definitely help all the parties including the policymakers and researchers to better understand the impact of foreign hypermarkets on local businesses and take appropriate policy measures.



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