Abstract
The paper presents an integration of the theoretical approaches of embeddedness and dynamic capabilities. Based on in-depth interviews with key informants of international fashion retail companies we show that dynamic capabilities enhance different types of embeddedness at different levels. Generic dynamic capabilities of adaptability and knowledge management play a role as they affect retailer-specific capabilities and societal, network and territorial forms of embeddedness. Integrating the two theoretical approaches provides new and deeper understanding of the nature of retail internationalization.
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