Embeddedness and the (re)making of retail space in the realm of multichannel retailing: the case of migros sanal market in turkey

Abstract

The purpose of this article is to investigate the value of the concept of embeddedness for economic geographers. Alongside the case study of the multichannel grocery retailing brand Migros in Turkey, the spatial impacts – in relational and physical terms – of digitalization and the integration of an online shop into the profile of a supermarket chain are investigated. In applying the concept of embeddedness the article seeks to understand these complex, diverse and uneven processes of (retail) restructurings that affect different dimensions and dynamics of networks, societies and spaces. In my case study I identify two dimensions of embeddedness processes: (1) embedding the online shop in the firm's routines and practices, whereby processes of transfer of knowledge and technology dominate; and (2) embedding online shopping in the customer's routines and practices, whereby processes of adaption to consumer culture dominate. These dimensions are reflexive and as such mirror ongoing negotiation processes between the two stakeholders. On one hand multichannel retailing thus not only alters where but also how people shop, and can result in new retail spaces like pick‐up stores. On the other hand it can be shown, that the “locations”, where online shopping of Migros is available, reproduce spatial variations of socio‐economic factors, such as income distribution or population density. As such, the concept of embeddedness is useful for economic geographers – also in the realm of e‐commerce – to unravel the interconnections of societal, organizational and spatial patterns as well as their variations across space. The study is based on qualitative interviews.

Exploring key logistics characteristics supporting embeddedness in retailers’ geographical expansion

“…It is recognised that economic actions always, to some extent, tend to be influenced, or sometimes restricted by, the social structures and behaviours that surrounds the actions of individuals and organisations. Embeddedness has been highlighted as vital to market competitiveness (Frasquet et al 2018;Lowe and Wrigley 2010), and inability to generate appropriate embeddedness may result in failure regarding a geographical expansion (Appel 2016;Burt, Johansson, and Dawson 2017). All company functions, including logistics as is targeted in this research, must therefore contribute to such an embeddedness.…”

“…The societal embeddedness refers mainly to the legacy of the cultural, institutional and economic environment of the expanding company's home market (Tacconelli and Wrigley 2009), but also its history and former experiences outside the home market such as previous expansions (Burt, Johansson, and Dawson 2016). The societal embeddedness, described by Hess (2004) as the genetic code of the company, could hence be considered as the attribute of the expanding company, which is continuously shaped by its experiences (Appel 2016;Burt, Johansson, and Dawson 2017;Frasquet et al 2018;Lowe and Wrigley 2010).…”

“…It constitutes a critical business success factor for many retail companies (Akehurst and Alexander 1995;Burt et al 2008;Dawson 2007;Wood and Reynolds 2014) and is a relatively well-researched topic. For instance, internationalisation incentives (Corstjens and Lal 2012), market selection (Swoboda, Schwarz, and Hälsig 2007), market channels (Agatz, Fleischmann, and Van Nunen 2008;Appel 2016;Huang and Sternquist 2007), entry mode strategies (Doherty 1999;Picot-Coupey, Burt, and Cliquet 2014), and retail format (Swoboda and Elsner 2013) are all topics that have been addressed extensively. Alongside these business and marketing-oriented research streams, logistics has been acknowledged as a crucial prerequisite and a key ingredient for successful geographical expansion (Abrahamsson and Rehme 2010;Creazza, Dallari, and Melacini 2010;Marchet et al 2016;Swoboda, Foscht, and Cliquet 2008).…”

“…An appropriate embeddedness, including involved logistics operations, is decisive for a successful geographical expansion (e.g. Appel 2016;Burt, Johansson, and Dawson 2017). Considering the embeddedness of a geographical expansion offers new insights into how strategies and operations related to new technologies, products and processes could be designed and introduced (Appel 2016).…”

“…Appel 2016;Burt, Johansson, and Dawson 2017). Considering the embeddedness of a geographical expansion offers new insights into how strategies and operations related to new technologies, products and processes could be designed and introduced (Appel 2016). Accordingly, embeddedness offers a new lens through which the role of logistics in geographical expansion can be better explored and understood.…”