GLOBAL SHOP LAYOUT STRATEGY ON PERFORMANCE OF MULTINATIONAL ENTERPRISES

Authors

  • SICHEN LIU Adam Smith Business School, University of Glasgow, Glasgrow, United Kingdom.
  • KASTURY GOHAIN School of Business, University of Dundee, Dundee, United Kingdom.
  • JIACHEN LI Department of Law, Huazhong University of Science and Technology, Hubei, China.

DOI:

https://doi.org/10.55197/qjssh.v4i6.312

Keywords:

multinational enterprises (MNEs), multinational corporations (MNCs), cultural differences, performance, shop dispersion, culture distance index

Abstract

In the backdrop of an increasingly interconnected global landscape, the phenomenon of globalization has compelled a growing number of enterprises to embark on this transformative journey. Yet, as these multinational enterprises (MNEs) navigate the complexities of international expansion, a myriad of challenges surfaces within their production and operational realms. However, there are few previous studies that combine the performance of MNCs, cultural differences and shop density to explore the relationship between them. The purpose of this paper is to explore the possible relationship between these three by using regression analysis of current era data. This study investigates the relationship between performance, cultural differences and shop density of multinational corporations using the more recent financial data of Lush cosmetic LTD. for the financial year 2022. It is found that cultural differences are weakly and negatively related to firm performance, and also weakly and negatively related to shop concentration. Nevertheless, there is a strong positive correlation between shop dispersion and firm performance. This suggests that the greater the cultural differences, the poorer the firm performance and the lower the shop concentration. The results of the study can provide a reference for MNEs to overcome the difficulties in the process of globalization. In sum, this investigation bridges a pivotal gap in the extant studies, unraveling the intricate relationships between MNE’s performance, cultural differences, and the spatial distribution of retail establishments. Its findings possess the potential to inform strategic decisions and policy formulation for MNCs striving to navigate the intricate tapestry of global expansion.

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Published

2023-12-12

How to Cite

LIU, S., GOHAIN, K., & LI, J. (2023). GLOBAL SHOP LAYOUT STRATEGY ON PERFORMANCE OF MULTINATIONAL ENTERPRISES. Quantum Journal of Social Sciences and Humanities, 4(6), 84–91. https://doi.org/10.55197/qjssh.v4i6.312

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