From an Institutional Perspective: Exploring the Risk and Uncertainties of Retailing Industry in The International Market

Yilin Ma

doi:10.54097/9weagn95

Authors

Yilin Ma

DOI:

https://doi.org/10.54097/9weagn95

Keywords:

Retail Internalization, Institutional Theory, Global Expansion Strategies

Abstract

The globalization of the retail industry has opened new markets and opportunities for expansion. However, internationalization also introduces significant risks and uncertainties, particularly due to differences in formal and informal institutions across countries. This paper employs institutional theory to analyze the risks faced by retail firms in international markets, focusing on formal institutions (political, economic, and legal systems) and informal institutions (culture, religion, language, and ethics). Through case studies of Walmart, Tesco, and Carrefour, the paper highlights the challenges of navigating institutional complexities and proposes strategies for mitigating risks. The study incorporates data analysis and visualizations to provide empirical support for its arguments. The findings contribute to both theoretical and practical understandings of retail internationalization and provide insights for firms seeking to expand globally.

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