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Abstract
Wood S., Coe N. M. and Wrigley N. Multi-scalar localization and capability transference: exploring embeddedness in the Asian retail expansion of Tesco, Regional Studies. This paper revisits the ‘firm in the region’ and the ‘region in the firm’ dichotomy through the case of Tesco's retail expansion in Asia. It focuses on the tension between the transference of proven key capabilities to the host economies Tesco has entered, and strategic localization, primarily for customer-facing, corporate culture, regulatory and institutional reasons. It is demonstrated how the retailer has pursued a multi-scalar adaptive approach that goes beyond any standardized/localized dichotomy to respond to differences between and within national markets. In the process, this paper provides evidence of genuine two-way knowledge flow between the home market and subsidiaries, between subsidiaries themselves, and of subsidiaries granted autonomy and the ability to flex their strategies.
Wood, S., Coe, N. M. and Wrigley, N. 多重尺度在地化与能力转移：探讨特易购（Tesco）在亚洲零售扩张中的镶嵌性，区域研究。本文透过特易购（Tesco）在亚洲的零售扩张案例，重探“区域中的企业”以及“企业中的区域”之二元对立。本文聚焦特易购被証实的关键能力转移至其所进入的地主经济，及其主要为了面对顾客、企业文化、规范与制度因素所形成的策略性在地化之间的紧张关係。本文显示零售商如何寻求多重尺度、并超越任何标准化／在地化二元对立的适应方法，以回应全国市场之间及之中的差异。在此过程中，本文提供母国市场和子公司之间、各子公司之间，以及被赋予自主性的子公司与将其策略弹性化的能力之间的真正双向知识流动。
Wood S., Coe N. M. et Wrigley N. La localisation multi-scalaire et le transfert de la capacité: un examen de l'ancrage de Tesco dans le développement de la vente au détail en Asie, Regional Studies. Cet article réexamine la dichotomie de la présence de ‘l'entreprise dans la région’ et l'importance de ‘la région pour l'entreprise’ au moyen d'une étude de cas du développement de la vente au détail de Tesco en Asie. Il porte sur la tension entre le transfert des capacités clés éprouvées aux économies d'accueil où Tesco s'est installée, et la localisation stratégique, principalement à cause du contact avec les clients, de la culture organisationnelle, des raisons réglementaires et institutionnelles. On montre comment le détaillant a suivi une approche adaptive multi-scalaire qui va au-delà de toute dichotomie standardisée/localisée pour répondre aux différences des marchés nationaux. Ce faisant, cet article fournit des preuves d'un véritable flux de connaissance dans les deux sens entre le marché intérieur et les filiales, entre les filiales elles-mêmes, et des filiales accordées l'autonomie et la capacité de s'imposer du point de vue stratégique.
Wood S., Coe N. M. und Wrigley N. Multiskalare Lokalisierung und Übertragung von Kapazität: Untersuchung der Einbettung in der Expansion der Einzelhandelsgeschäfte von Tesco in Asien, Regional Studies. In diesem Beitrag wird die Dichotomie der ‘Firma in der Region’ und der ‘Region in der Firma’ anhand des Beispiels der Expansion der Einzelhandelsgeschäfte von Tesco in Asien einer erneuten Überprüfung unterzogen. Im Mittelpunkt steht die Spannung zwischen der Übertragung bewährter zentraler Kapazitäten an die von Tesco erschlossenen Wirtsökonomien und der strategischen Lokalisierung, die in erster Linie aus Gründen der Kundennähe, Unternehmenskultur sowie aus behördlichen und institutionellen Gründen erfolgt. Wir zeigen, wie das Einzelhandelsunternehmen einen multiskalaren adaptiven Ansatz verfolgt hat, der über jede standardisierte bzw. lokalisierte Dichotomie hinausgeht und in dem sich die Unterschiede zwischen den und innerhalb der nationalen Märkte widerspiegeln. Im Rahmen dieses Prozesses liefert der Beitrag Belege für einen echten Wissensfluss in beide Richtungen sowohl zwischen dem Heimatmarkt und den Filialen als auch zwischen den Filialen selbst; außerdem finden sich Belege für Filialen, denen Autonomie und die Möglichkeit zur flexiblen Gestaltung ihrer Strategien eingeräumt wird.
Wood S., Coe N. M. y Wrigley N. Localización multiescalar y transferencia de capacidades: análisis de la integración en la expansión minorista de Tesco en Asia, Regional Studies. En este papel volvemos a analizar la dicotomía de la ‘empresa en la región’ y la ‘región en la empresa’ mediante el caso de la expansión del comercio minorista de Tesco en Asia. El objetivo principal es la tensión entre la transferencia de las principales capacidades demostradas a las economías anfitrionas de Tesco y la localización estratégica, principalmente para cuestiones como el trato a los clientes, la cultura corporativa así como motivos legales e institucionales. Demostramos cómo la empresa minorista ha seguido un enfoque adaptable y multiescalar que va más allá de cualquier dicotomía estandarizada/localizada para responder a las diferencias entre los mercados nacionales e incluso dentro de ellos. En el marco de este proceso, en este artículo presentamos pruebas de un verdadero flujo de conocimiento bilateral entre el mercado nacional y las filiales, así como entre las mismas filiales, y de la autonomía y la capacidad de gestionar estrategias más flexibles que se proporcionan a las filiales.
Acknowledgements
The authors would like to thank Matthew Truman and Paul Diamond at JP Morgan; James Anstead at Barclays Capital; Clive Black at Shore Capital; and Dave McCarthy at Evolution Securities for estimates and information concerning Tesco performance. Finally, the authors appreciate the helpful and constructive comments of the referees in helping to improve this paper. All errors and omissions are the responsibilities of the authors alone.
Notes
1. Use of the term ‘embeddedness’ within economic geography is not without its critics. Andrew Jones (Jones, Citation2008) recently argued that the expression's usefulness is limited due to its underemphasis of the relational nature of power and agency, resulting in a limited conceptualization of the spatial development of economic activity.
2. Tesco had previously acquired a food retail business in Ireland (The Three Guys chain) in 1979.
3. ‘The planogram is a blueprint of the store display case and considers shelf management and presentation of each product. Specifically, the planogram design takes into account shelf space allocation and location of each product to maximize store sales and profits’ (Chung et al., Citation2007, p. 585).
4. Many thanks to an anonymous referee for clarifying these issues.
5. In common with its accepted expansion mode, in 2004 Tesco entered China through a partnership with Ting Hsin-owned local operator, Hymall, acquiring 50% of 25 hypermarkets for £148 million, followed with the purchase of a further 40% for £181 million in December 2006. In some respects the approach to expansion has been along the lines of the established Tesco approach within Asia. The retailer acquired a share in a small hypermarket retailer and then increased that stake, having learned a great deal about the market. Elements of the operating model were introduced and, in March 2007, a new fresh food distribution centre was opened in Shanghai to supply 30 stores in Shanghai, Jiangsu province and Zhejiang province. Operationally this was important to gain control of the distribution network and therefore ensure food quality. Having traded initially as ‘Happy Shopper’ through the Hymall joint venture, a period when those original stores were refitted, there was a focus on mediating between the tendencies of transference and localization in store design, a greater focus afforded to the Tesco fascia and the gradual introduction of the pillar Tesco sub-brands across the product offer.
6. In 2010, development plans for the Chinese business were ambitious with 600 ‘ideal’ locations identified across 90 cities and expectations by 2014/15 of 50 malls trading (each with a hypermarket); 30 malls in development and over 150 leasehold hypermarkets (Waller, Citation2010). Despite these ambitious plans, Tesco's strategy for China has been significantly scaled back since the writing of this paper. By 2013, the retailer's Chinese business was estimated to be losing in the region of £50 million per annum (Shore Capital, Citation2013) and analysts widely doubted its continued viability. In August 2013, the retailer unsurprisingly signalled a new ‘capital light’ strategy for China, consisting of a joint venture with China Resources Enterprise (CRE), a state-controlled retailer, ranked second largest in China with coverage in 24 of its 34 provinces. Tesco argued this offered a route to growth that prevented it from over-extending its capital commitments, with a 20/80 ownership split in favour of CRE. In addition, the joint venture would create a market-leading grocery retailer with sales in excess of current market leader, RT Mart/Auchan.