The stakeholders with two attributes are dominant

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Unformatted text preview: nd demanding stakeholders with urgency. The stakeholders with two attributes are dominant stakeholders with power and legitimacy, dependent stakeholders with legitimacy and urgency, and dangerous stakeholders with urgency and power. Definitive stakeholders possess all three attributes and are therefore likely to have the strongest impact on the entrant. The ability of a stakeholder to make demands depends on the number of attributes it has (Uusitalo & Rokman; 2004). Uusitalo and Rokman (2004) used data collected from newspapers and business magazines over a period of a year. Newspaper articles were also searched from the internet as well as from a business data base. In addition to the newspaper articles, minutes of municipal boards and planning committees, as well as records of discussion groups of national tabloid newspapers, were included. The data was used to analyse the views and reactions that the retailer evokes upon entry. The results of the analysis are depicted in Table 3. 38 Table 3: The stakeholder types during the entry of Lindl into Finland Stages of entry Stakeholder attributes Stakeholder type Power Owner Owner Dominant Management Management Dominant Commune Antecedent stage Legitimacy Urgency Commune Dominant Media Dangerous Competitor Operational stage Media Competitor Dangerous Owner Owner Owner Definitive Management Management Management Definitive Competitor Competitor Competitor Definitive Employees Discretionary Supplier Supplier Dominant State State Dominant Consumer Discretionary settling stage Opening period Employees Dependent Supplier Supplier Dependent Consumer Society Employees Consumer Dependent Society Society Definitive Culture Discretionary Source: Uusitalo and Rokman (2004) Uusitalo and Rokman (2004) propose that their model could be used to assess the entry of a retailer in a different context. 39 2.5 Conclusion of Literature Review The study is at the intersection of internationalisation, stakeholder management and retail, or Wal-Mart, literature and theory. The study of internationalisation is largely preoccupied with the motives and modes thereof. Although retail internationalisation studies are based on this theory, its literature is gradually evolving into a stand-alone field of study due to the peculiarities of the retail sector. The stakeholder management theory is dominated by Freeman’s (1984) idea that a strategic approach to management is to recognise that the firm depends on a variety of stakeholders, whose interests must be addressed to ensure the firm meets its own objectives. For purposes of this study, a small but growing area of research on management of stakeholders during retail entry was examined. There is literature, some of it less relevant to this research, at the intersection of the three areas of internationalisation, stakeholder management and retailing. This research is located in the intersection of all three. The gap in literature in this area is even much wider in an emerging market context. 40 CHAPTER 3: RESEARCH QUESTIONS The essential question this research seeks to answer is how Walmart managed stakeholders during its entry into South Africa, in order to draw instructive lessons from this experience. Although a study of a similar nature has been done in Finland, the topic is relatively unexplored, particularly in an emerging market context. Accordingly, guided by the literature research, questions were formulated: 3.1 Research Question 1 Who were the main stakeholders during Wal-Mart’s entry into South Africa? 3.2 Research Question 2 What were the stakeholders’ roles and motives? 3.3 Research Question 3 How did the stakeholder groups react to the entrance of Wal-Mart into South Africa? 3.4 Research Question 4 How did Wal-Mart manage the main stakeholders when entering South Africa? 3.5 Research Question 5 What were the outcomes of Wal-Mart’s management of the main stakeholders on entry into South Africa? 41 CHAPTER 4: RESEARCH METHODOLOGY 4.1 Introduction This chapter details how the research questions will be answered. The literature review formed the theoretical backdrop to this research and dictated the research design. The research design and its justification are set out, followed by the description of the population and the sample. This is then followed by a description of a unit of analysis. A background to the documents and their source is then provided, followed by the explanation of the research process. A brief explanation of how the analysis was done is given, before the chapter concludes by pointing out limitations posed by the research method. 4.2 The Research Design The literature reviewed in Chapter Two demonstrate that research on management of stakeholders during retail entry into emerging markets is limited. For this reason, an exploratory qualitative research design was chosen. Qualitative research is suitable for studying a little known phenomenon as it allows it to be investigated in depth and in detail (Blumberg et al, 2008; Marshall & Rossman, 2006; Patton, 2001). It also offers a sufficiently flexi...
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This document was uploaded on 01/24/2014.

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