Managing communities and managing knowledge: strategic decision making and store network investment within retail multinationals

Abstract

The manner in which knowledge is spatially generated, reproduced and diffused is of interest to students of economic geography and business management alike. This paper seeks to contribute to these debates by drawing on the results of a year-long study with analysts working in location-planning departments of multinational retailers to determine: a) how different types of knowledge are mediated within organisational contexts to inform store development; and b) the extent to which analysis can be successfully formalised into "best practice". We find that while quantitative models of sales forecasting have become established, analysis on a dayto-day basis sees judgements made by analyst "communities" without perfect data, as experience and intuitive insights contribute to corporate decision-making. Furthermore, a number of communities-of-practice across the retail firm, consisting of actors with different backgrounds and agendas, contribute to outcomes. Understanding the power relations embedded within (and across) these communities is essential to conceptualise the store expansion process.

Knowledge management, organisational learning and memory in UK retail network planning

“…While often noting the wide variation in approaches employed, these surveys have emphasised the gradually increased complexity of analysis undertaken -itself often relating to the increasingly professional organisational culture of the retailer and the resources allocated to site analysis (Theodoridis & Bennison, 2009;Wood and Reynolds, 2011a;2011b). However, these surveys have also observed the degree to which formal techniques tend to be combined with experience and intuition.…”

Technology transfer within China and the role of location choices

“…However, with the exception of a few studies (e.g., Coe and Lee, 2013;Ebersberger and Herstad, 2012;Wood and Reynolds, 2012), it has not fully addressed the question of whether similar mechanisms and principles apply at more disaggregate levels, i.e., among cities within one country. Our findings of the intrinsic effects that arise from variations of firms' internal networks show that differences in a firm's internal spatial concentration and dispersion at city level can generate complex and varied performance outcomes.…”

“…As knowledge is location specific (e.g., Hotho et al, 2011;Tallman and Phene, 2007), units that operate in different locations can access and accumulate knowledge of several domains, with varied specificity and contextual applications (e.g., Wood and Reynolds, 2012), and exploit potential spillovers arising from economies of agglomeration and add new elements to their knowledge base. Thus, network breadth gives business units the opportunity to access a wide range of knowledge sources from diverse markets, scientists, and other local talent pools that can be 13 uses to improve performance.…”

The emerging food retail structure of Vietnam

“…The leading operators quickly developed first mover advantages in key emerging markets, further strengthened with codified and transferable sets of operational, sourcing and marketing competences. That is to say, knowledge that could be applied to new markets to help realise a balance between standardised operational efficiency and local embedded sensitivity (Aoyoma, 2007;Bianchi and Ostale, 2006;Coe and Lee, 2006;Currah and Wrigley, 2004;Wood and Reynolds, 2012a). Indeed, the retail marketing literature has explored the challenges of winning consumer acceptance for new formats in under-developed retail markets.…”