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Unformatted text preview: rgue, is the GDP of a country. Vida and Fairhurst (1998) propose a conceptual framework for retail internationalisation. The framework depicted in Figure 5 postulates that the interphase between the firm’s external environment, the firm’s characteristics and decision -maker characteristics (antecedents) serve as promoters or inhibitors to whether or not it will internationalise, and the extent of such internationalisation (process). Such a process leads to decisions on resource allocation and mode of entry (outcomes). 24 Figure 5: A model of factors influencing the retail internationalisation process ANTECEDENT PROCESS OUTCOMES EXTERNAL ENVIRONMENT Market characteristics Industry characteristics Consumers Competitors Foreign market idiosyncrasies; socio-cultural, legal, political, economic PROPROMOTORS/ INHIBITORS (Re)-EVALUATION of SITUATION: Alternatives DECISION-MAKER CHARACTERISTICS Knowledge Experience Perceptions/attitude INITIATE INTERNATINAL RETAIL ENTRY MAINTAIN A CONSTANT LEVEL OF INTERNATIONAL RETAIL INVOLVEMENT FIRM CHARACTERISTICS Resource commitment Differential advantages INCREASE THE LEVEL OF INTERNATIONAL RETAIL INVOLVEMENT DECREASE THE LEVEL OF INTERNATIONAL RETAIL INVOVOLVEMENT MODE MARKET Retail Management Considerations DISCONTINUE INTERNATIONAL RETAIL INVOLVEMENT Performance of International Retail Operations Source: Vida and Fairhurst (1998) Arnold and Luthra (2000) examine the effects of the entry of a large retailer, Wal-Mart, into a small market, weighing the costs and benefits of such an entry to local communities. Wal-Mart’s influence on retail sales levels in local communities has been analysed by Davidson and Rummel (2000) and commented on by Stiglitz (2006). Other studies on Wal-Mart include the analysis of its entry into, and effect on, the UK market (Whysall, 2001; Arnold & Fernie, 2000; Uusitalo & Rokman, 2004), the effects on local labour markets (Neumark, Zhang and Ciccarella, 2008) and the effects on consumers (Arnold, Handelman, Tigert, 1998). Research covering the histories of other individual firms also exists (Uusitalo and Rokman, 2004). 25 2.3 Stakeholder Management In the words of ‘the father of modern stakeholder theory’, Freeman, stakeholder theory seek to address the problems of “…understanding and managing a business in the world of the twenty first century (the problem of value creation and trade); and putting together thinking about questions of ethics, responsibility, and sustainability with the usual economic view of capitalism (the problem of ethics capitalism) …” (Freeman, Harrison, Wicks, Parmar, & Colle, 2010, p.28). Organising literature and integrating methodological trends on stakeholder theory to achieve a convergent theory has been identified as a particular challenge (Friedman & Miles, 2002). Stakeholder literature has primarily been concerned with defining the stakeholder concept and classifying stakeholders into categories on the basis of the nature of the relationships (Rowley, 1997). The stakeholder theory of a firm should determine how the firm will operate under various conditions (Brenner & Cochran, cited in Rowley, 1997). Before examining literature on stakeholder management and retail internationalisation, various permutations of the stakeholder theory are explored. 2.3.1 Evolution of Stakeholder Theory in Management Stakeholder management has become an important part of management literature and practice today (Cooperrider & Fry, 2010; Freeman, 2010; Reed, Graves, Dandy, Posthumus, Hubacek, Morris, Prell, Quinn & Stringer, 2009; Freedman & Miles, 2002; Elias & Cavana, 2000). Tracking the origins of the concept of “stakeholder” has proved elusive and sometimes controversial. Freeman’s (1984) account of the concept as originating from the 1960s at the Stanford Research Institute (now SRI International Inc.) has been widely recognised in literature (Elias & Cavana, 2000). However, later research shows that even though SRI 26 researchers contributed immensely to bringing the concept into corporate planning in the early sixties, the intellectual history of the concept and the main ideas of stakeholder theory is much richer than Freeman’s (1984) original account (Freeman et al, 2010; Schilling, 2000). In Stakeholder Theory: the State of the Art, Freeman et al (2010) demonstrate remarkable fidelity to this intellectual heritage in what constitutes an update of Freeman’s earlier work. In it they acknowledges that a more in-depth research into the history of the concept was undertaken by Slinger in an unpublished doctoral thesis, in which, amongst other things, a connection is made between the stakeholder idea and human relations. They further acknowledges that the concept also evolved in other parts of the world, notably Scandinavia, years before the SRI adopted it. Schilling (2000) argues for the recognition of Marry Parker Follett’s contribution to stakeholder theory, citing Parker’s 1918 work, The New State, in which she calls upon people to recognise their interconnectedness to...
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