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

Organizational identiy and capability development in internationalization: transference, splicing and enhanced imitation in Tesco’s US market entry
Organizational identiy and capability development in internationalization: transference, splicing and enhanced imitation in Tesco’s US market entry
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.
1468-2702
1021-1054
Lowe, Michelle
ef0bda2e-3e2c-428f-9c0b-cc8551ff255e
George, Gerard
9542d535-a99e-419f-b8bc-fbc210f22f76
Alexy, Oliver
d7a48940-5b62-4fb0-b0aa-f3b8de1108de
Lowe, Michelle
ef0bda2e-3e2c-428f-9c0b-cc8551ff255e
George, Gerard
9542d535-a99e-419f-b8bc-fbc210f22f76
Alexy, Oliver
d7a48940-5b62-4fb0-b0aa-f3b8de1108de

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).

Record type: Article

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.

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Published date: 2012
Organisations: Strategy, Innovation & Entrepreneurship

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Local EPrints ID: 338963
URI: http://eprints.soton.ac.uk/id/eprint/338963
ISSN: 1468-2702
PURE UUID: d386a71a-4345-450d-8a55-271de695a9d9

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Date deposited: 25 May 2012 08:52
Last modified: 14 Mar 2024 11:07

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Contributors

Author: Michelle Lowe
Author: Gerard George
Author: Oliver Alexy

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