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JOURNAL OF APPLIED BUSINESS AND ECONOMICS

Applying the Concept of Embeddedness in the Retail Internationalization: A Case Study of Japanese Convenience Store FamilyMart in China   

Author(s): Chung Sulin

Citation: Chung Sulin, (2017) "Applying the Concept of Embeddedness in the Retail Internationalization: A Case Study of Japanese Convenience Store FamilyMart in China," Journal of Applied Business and Economics, Vol. 19, Iss.10,  pp. 156-161

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper applies the embeddedness concept identified by Hess (2004) and the ‘Convenience Business

Model (CBM)’ framework to demonstrate how FamilyMart embedded itself in the Chinese market in two

stages. This was achieved through a combination of societal, network, and territorial embeddedness. We

discover that FamilyMart China transferred the basic CBM concept during the entry stage, and focused

mainly on its ‘background system’ by entering into joint ventures. This embeddedness was primarily

network-related. In FamilyMart China’s growth and development stage, the focus shifted towards the

CBM ‘front system’ to create value for its customers and its embeddedness was primarily territorial.