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Journal of Economic Geography Advance Access originally published online on April 11, 2005
Journal of Economic Geography 2005 5(4):449-473; doi:10.1093/jeg/lbh068
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Right arrow F02 - International Economic Order
Right arrow F23 - Multinational Firms; International Business
Right arrow L14 - Transactional Relationships; Contracts and Reputation; Networks
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© The Author (2005). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oupjournals.org

The internationalization of retailing: implications for supply network restructuring in East Asia and Eastern Europe

Neil M. Coe* and Martin Hess**

** Geography, School of Environment and Development, The University of Manchester, Oxford Road, Manchester, M13 9PL, UK

* Author to whom correspondence should be addressed at: Geography, School of Environment and Development, The University of Manchester, Oxford Road, Manchester, M13 9PL, UK. email <neil.coe{at}manchester.ac.uk>

This paper explores the implications of the rapid internationalization of a small cadre of retail transnational corporations over the last 15 years for supply network structures in a range of economies in Eastern Europe and East Asia. Five sets of ongoing restructuring dynamics are identified: the centralization of procurement, logistical upgrading, supply network shortening and new intermediaries, the imposition of quasi-formal contracts, and the development of private standards. It is suggested that these processes are leading to an ongoing ‘shakeout’ of the supply base that is favouring relatively large, well-capitalized suppliers.

Keywords: retailing, internationalization, supply networks, East Asia, Eastern Europe,
JEL classifications: F02, F23, L14, L23, L81
Date submitted: 4 October 2004     Date accepted: 28 January 2005


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