Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

5-2026

Abstract

Against the backdrop of the dual drivers of the revitalization and development of traditional Chinese medicine (TCM) and the rising demand for health-related consumption, the nationwide expansion of TCM chain brands has become a prominent issue of shared concern for both industry and policy circles. However, existing research largely treats cities as mutually independent units and overlooks the spatial externalities arising from geographic proximity. It also implicitly assumes that the driving factors remain stable over a brand's expansion life cycle. This makes it difficult to capture the dynamic evolution of the logic governing store expansion across different stages. Accordingly, this study takes Beijing Tong Ren Tang as its research subject and, drawing on store expansion data from 2010 to 2024, systematically investigates the spatial diffusion characteristics of its stores, the stage-specific heterogeneity of influencing factors, and the cross-city spatial spillover effects at different development stages by integrating kernel density estimation (KDE), Ripley’s K function, the global Moran’s I, multiple regression models, and the spatial Durbin model.

The research findings are as follows. First, Beijing Tong Ren Tang stores exhibit significant spatial agglomeration effects, and the agglomeration patterns undergo systematic changes across development stages. Between 2010 and 2024, the agglomeration intensity of Beijing Tong Ren Tang’s domestic stores underwent an evolutionary process of “small-scale agglomeration - re-agglomeration at an expanded scale - contraction of agglomeration - re-agglomeration at an expanded scale”. Second, the store diffusion path displays a hierarchical structure characterized by progressive spillover from national central cities to regional central cities, and further to ordinary prefecture-level cities. Third, the factors influencing store expansion exhibit pronounced stage-specific differences. Fourth, the store layout in neighboring cities exerts a significant spatial spillover effect on the market entry decisions of a given city, and this effect alternates between catalytic and crowding-out patterns across different stages.

The marginal contributions of this study are threefold. First, it constructs an integrated analytical framework that encompasses the characterization of brand diffusion features, the identification of the mechanisms driving diffusion, and the testing of spatial spillover effects. Second, by introducing the spatial Durbin model, it achieves the precise identification and decomposition of inter-city spatial spillover effects. Third, it reveals the stage-specific heterogeneity of the driving factors and provides an identification of the expansion mechanism from a dynamic perspective. The research conclusions offer empirical evidence and decision-making references for designing stage-specific layered strategies for the nationwide expansion of TCM chain brands, constructing a multi-dimensional quantitative evaluation framework for city entry decisions, and shaping policy instruments through which the government can guide high-quality TCM brands to rationally extend into regions with scarce resources.

Keywords

Beijing Tong Ren Tang, Spatial diffusion, Spatial Durbin Model, Stage-specific heterogeneity, Spatial spillover effects

Degree Awarded

Doctor of Bus Admin (CKGSB)

Discipline

Marketing | Strategic Management Policy

Supervisor(s)

HUANG, Dashan

First Page

1

Last Page

158

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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