Organizational identiy and capability development in internationalization: transference, splicing and enhanced imitation in Tesco’s US market entry


Lowe, Michelle, George, Gerard and Alexy, Oliver (2012) Organizational identiy and capability development in internationalization: transference, splicing and enhanced imitation in Tesco’s US market entry. Journal of Economic Geography, 12, (5), 1021-1054. (doi:10.1093/jeg/lbs016).

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Description/Abstract

Entry into international markets is a challenging process that fundamentally tests existing capabilities. During this entry process, capability gaps arise that need to be bridged to exploit the commercial opportunity and grow the business. Using a global retailer, Tesco plc, as a case study and employing grounded theory development techniques, we find that in order to achieve growth, two organizational attributes become critical—structural coherence of the firm’s capabilities and organizational identity. We identify three processes of capability development during market entry—transference, splicing, and enhanced imitation. Further, actions and processes that maintain or adapt organizational identity serve as a moderator of the relationship between these processes, capability deployment, and internalization necessary for entry into international markets. We discuss the study’s implications for theories of capability development, organizational identity, and foreign market entry.

Item Type: Article
ISSNs: 1468-2702 (print)
1468-2710 (electronic)
Subjects: H Social Sciences > HF Commerce
Divisions: Faculty of Business and Law > Southampton Management School > Strategy & Innovation
ePrint ID: 338963
Date Deposited: 25 May 2012 08:52
Last Modified: 27 Mar 2014 20:21
URI: http://eprints.soton.ac.uk/id/eprint/338963

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