Retail Entry Strategies for Emerging Markets: Cost & Institutional Dynamics

Available evidence on foreign direct investment often call for firms to try to reduce their stake in uncertain markets by utilizing the collaborative entry strategy in these markets. Based on a case study of over a dozen foreign retail firms in an emerging market in sub-saharan Africa, this project provides arguments to show the reverse could be the case for such uncertain markets because of very important market conditions peculiar to these developing markets taking into consideration also, the transaction cost of operation in such markets and the institutional dynamics in the market. So apart from the various firm characteristics discussed, several formal and informal institutional factors especially as they relate to the retail sub sector are also investigated and discussed to provide a better understanding of international retail entry strategy. The findings provide some valuable theoretical, empirical, and managerial contributions. This further broadens our knowledge base and opens up the argument on what factors to critically consider as retail firms invest in foreign emerging markets. Practitioners, students and academics will benefit greatly from reading this book.