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A master's thesis from Aalborg University
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Internationalization of Modern Food Retail Trade in Developing Countries: Challenges and Strategies of African Food Suppliers

Authors

;

Term

4. Term

Publication year

2014

Submitted on

Pages

98

Abstract

Efterhånden som hjemmemarkederne mættes, udvider globale fødevaredetailkæder til udviklingslande og forsøger at overføre deres “moderne” detail- og forsyningspraksis (fx mere organiserede detailformater og standardiserede indkøb). Denne afhandling undersøger, hvilke udfordringer afrikanske fødevareleverandører møder, når de prøver at blive en del af sådanne moderne forsyningskæder, og hvilke strategier der kan hjælpe dem med at håndtere barrierer. Afhandlingen undersøger også, hvilken rolle internationale forretningsteorier spiller for udviklingen af moderne fødevaredetailhandel i udviklingslande, og argumenterer for, at internationaliseringsteorier i høj grad hjælper med at forstå, hvorfor og hvordan detailkæder ekspanderer. Et centralt fund er, at detailkæder vælger værtslande ud fra lokationsfordele. Med Dunnings OLI-paradigme (Ownership–Location–Internalization) som analytisk ramme og med Cameroun som case illustrerer studiet, hvorfor moderne detailhandlere foretrækker nogle lande frem for andre til direkte udenlandske investeringer. Kort fortalt forklarer OLI, at virksomheder investerer i udlandet, når de har virksomhedsspecifikke styrker, finder attraktive lokale forhold, og når det giver mening at holde visse aktiviteter internt.

As home markets become saturated, global food retailers expand into developing countries and try to transfer their “modern” retail and supply practices (such as more organized formats and standardized purchasing). This thesis examines the challenges African food suppliers face when trying to join these modern supply chains and the strategies that can help them overcome barriers. It also explores the role of international business theories in the rise of modern food retail in developing countries, arguing that internationalization theories are useful for understanding why and how retailers expand. A key finding is that retailers choose host countries based on location advantages. Using Dunning’s OLI (Ownership–Location–Internalization) Paradigm as the analytical framework and Cameroon as a case, the study illustrates why modern food retailers favor some countries over others for foreign direct investment. In brief, OLI explains that firms invest abroad when they have firm-specific strengths, find attractive local conditions, and benefit from keeping certain activities in-house.

[This abstract was generated with the help of AI]