Small-independent retailers vs. organized retailers: An empirical study in Indonesian economics of service industries

This paper explores the influence of strategic planning and functional-business strategy in helping small-independent retailers/traditional retailers to survive amidst the competition with organized retailers. Based on cross-sectional survey research, this study illustrates the influence of strategic planning and functional-business strategy to retailer–supplier relationship, consumer loyalty program, and retailer performance. In order to clarify the relationships among these constructs, a structural equation model (SEM) is employed to examine the model fit and the five hypotheses. The results show that strategic planning is critical for small independent retailers due to its influence on the retailer–supplier relationship and consumer loyalty program. Besides, consumer loyalty program is also influenced by functional-business strategy. The retailer–supplier relationship and consumer loyalty program exhibits a positive influence on the small-independent retailer performance. The research supports the existence of a more complex that the consumer loyalty program fully mediates the relationships between strategic planning and functional-business strategy on retail performance. Moreover, the retailer–supplier relationship fully mediates the relationship between strategic planning and small retailer performance. These findings constitute a new contribution to the literature on small retailer research streams through the development of cross category relationships such as strategy, buyer behavior, and structure categories. Besides, this study can enhance the strategic management as well as the performance of small-independent retailers to achieve sustainable competitive advantage.     

Value Creation and Category Management through Retailer–Supplier Relationships

Abstract

This article discusses category management interactions in supplier–retailer relationships based on conceptual insights about value in business markets. Much category management literature has studied supplier–retailer relationships, but despite value creation being central to category management the conceptual approach is often the power-trust controversy. Based on value concept, category management and supplier–retailer relationship literature this study develops a model and hypotheses of retailer perceived benefits and sacrifices from category management collaboration. The article proposes that closer supplier-retailer interactions through the category management process hold the potential for increased value creation through application of complementary information resources, an improved coordination of tactical efforts, and an alignment of category aims and strategies explicitly linked to retailers' value systems. Further, the perceived necessity of trust in these relationships meshes with retailers' perceived sacrifices regarding negotiation power and full control of category marketing variables, thus establishing a trade-off for retailers between benefits and sacrifices.     

Conflict in Supplier–Retailer Relationships in the Brewery Industry in Cameroon

The authors develop a theoretical framework to explain conflict in supplier–retailer relationships. In addition to traditional influence strategy variables, the framework links conflict to retailer dependence and supplier formalization. The framework is empirically tested in the Cameroonian brewery industry. The findings support the view that channel conflict is inversely related to retailer dependence and supplier formalization. Contrary to expectations, the use of noncoercive influence strategies (information exchange and recommendations) has no significant effect on conflict, while, as expected, the use of coercive influence strategies (threats and promises) increases conflict.     

Retailer-buyer supplier relationships: The Japanese difference

The purpose of this study, which draws data from a national survey of Japanese retail buyers, is to provide insight into how culture influences channel relationships and to suggest how non-Japanese partners can facilitate long-term relationships. Results indicate that Japanese retailer long-term orientation with a supplier is an antecedent to trust, economic dependence and satisfaction with the supplier rather than an outcome of these constructs. This study implies that Japanese retailers are expected to look out for the best interests of their partners, rather than continuously seek new partners, and, further, partners learn to negotiate differences rather than seek dissolution of the relationship.     

Economic and non-economic factors of Korean manufacturer-retailer relations

The purpose of the study was to examine the impact of antecedent channel power sources on satisfaction, conflict, trust, dependence and long-term channel relationships between Korean retailers and manufacturers. The sample included 210 cosmetic retailers in 15 Korean cities. The results indicate that Korean manufacturers' exercised coercive power decreases retailers' economic and non-economic satisfaction, while exercised non-coercive power increases economic and non-economic satisfaction. Second, exercised coercive power increases both economic and non-economic conflict, and exercised non-coercive power decreases non-economic conflict. Third, retailers' economic and non-economic satisfaction is negatively related to economic and non-economic conflict. Fourth, trust is a mediating factor between satisfaction (economic and non-economic) and a long-term relationship. Finally, results indicate that neither conflict nor satisfaction is unidimensional; each has an economic and non-economic dimension. This finding is an important contribution to the channel relations literature.     

An Empirical Study of Buyer–Supplier Relationships within Small Business Organizations

A paradox exists in small business organizations; although effective buyer–supplier relationships are essential to the success of small businesses, these organizations may not have the purchasing and selling power in terms of managerial resources to implement them. This provides us an opportunity for research to determine how well developed are buyer–supplier relationships within small business organizations. Grounded in transaction cost and resource dependence theory, this paper presents and empirically tests a model that examines the relationships between buyer and supplier specificity and long‐term buyer–supplier relationships and the latter's impact on organizational performance from the buyers' perspective. The results of this study provide insight into the development and impact of buyer–supplier relationships within small business organizations. Several managerial implications can be determined.     

Sustainability drivers in food retail

Sustainability has become a relevant issue for retailers. We develop an integrated model with three drivers of retailer's investments in sustainability. First, the more their processes, human resources and customer driven capabilities are developed, the more investments in sustainability tend to occur. Second, retailers leverage their relationships with suppliers to invest in sustainability. Third, competition and economic instability may also lead to long run investments in social and environmental. We tested three hypotheses by surveying 101 retailers operating supermarkets, hypermarkets and neighborhood stores that focus mainly on food with a limited offering of general merchandise and apparel. Our results show the importance of customer driven capabilities for investments in sustainability. Communication with the supplier also has an impact on investments, while the process and policies of the supplier relationship do not. Retailers invest in sustainability to coordinate this relationship. Our study sheds light on the drivers for sustainability and offers an understanding of how a retailer may invest further in sustainability.     

The Impact of Consumer Confidence on Store Satisfaction and Share of Wallet Formation

For retailer managers, it is crucial to understand the relationships between customers’ store attribute evaluations, satisfaction, and share of wallet as well as how these relationships change over time depending on the business cycle. This study investigates this complex relationship using an extensive dataset for all grocery chains in the Netherlands over the period 2009–2012. Our findings indicate that retailers should not overemphasize the importance of a favorable price image in times of low consumer confidence. Instead, our study shows that the relationship between service attributes and customer satisfaction is stronger in periods with low consumer confidence.     

Retail Philanthropy: Firm Size,Industry, and Business Cycle

This article investigates the effects of firm size, profitability, industry affiliation, and the business cycle on retailer philanthropy. The importance of industry and firm effects on giving was analyzed with regression models using industry-fixed effects as well as firm strategy variables. The analysis included instrumental variables methodology to account for simultaneity in the charitable giving–profits relationship. Data were gathered from the IRS Corporate Statistics of Income Sourcebook, data that provide firm size class measures covering the entire firm size distribution ranging from small retailers up to large multi-national retail firms. Retailer philanthropy was measured as the ratio of charitable contributions to total receipts. Important findings include a cubic relationship between retailer philanthropy and firm size; industry effects stronger than those observed for retail profit; and the absence of business cycle effects. The empirical research relating retail charitable giving to firm attributes including firm size and advertising, industry and business cycle factors are unique in the business ethics literature. Prior studies regarding the importance of industry on charitable giving utilized data across broad sectors of the economy. Firms from different sectors could be expected to differ in philanthropic approach due to differences in public contact as well as differences in public relations exposure. The strong industry effects reported for this sample of exclusively retail firms, with similar public contact, provide strong evidence for the importance of industry in determining firms’ charitable strategies.     

When and How Does Supplier Opportunism Matter for Small Retailers' Channel Relationships with the Suppliers?

This study examines the moderating influences of power‐dependence structure and environmental volatility on the relationships between supplier opportunism and its outcomes. Data were collected from 102 small retailers using a mail survey. The results of multiple regressions indicate that supplier opportunism decreases small retailer credibility/benevolence and long‐term orientation. Further, the findings show that the lower the small retailer dependence, the stronger the negative influences of supplier opportunism on small retailer long‐term orientation. Finally, the lower the environmental volatility, the stronger the negative influences of supplier opportunism on small retailer credibility/benevolence and its long‐term orientation. Marketing implications and recommendations are provided.     

Testing the Negative Effects of Time Pressure in Retail Supply Chain Relationships

In today's rapidly evolving business environment, retailers must develop highly responsive supply chains in order to satisfy constantly changing market demands. One approach to achieving this objective is to leverage the capabilities of other supply chain members to achieve cycle time compression of key business activities. However, when viewed through the theoretical lenses of Social Exchange Theory and Reciprocity, a potential conflict exists between facilitating supply chain responsiveness and maintaining close retailer–supplier relationships. The purpose of this research is to quantitatively test how the imposition of time pressure affects key elements of retail supply chain relationships. Scenario based experimental methodology was utilized to test the effects of time pressure on two distinct types of retailer–supplier relationships. Results of this research offer evidence to support the notion that time pressure can reduce collaborative behaviors, relationship loyalty, and relationship value in critical retailer–supplier relationships.     

Business Ethics in China

First I briefly review the emergence and development of business ethics, following three stages (1978–1984; 1984–1994; 1994 to the present) and driven by four factors: the inheritance of Chinese traditional ethics; the influence of Marxist philosophy and ethics; the reflections on the economic reform; and the influence of business ethics from abroad. Then, from a practical and a theoretical perspective, I discuss the main challenges for business ethics in China: issues of the economic system, of corporate ethics, and of management. After commenting on the role of business ethics for the social development in China, I offer some reflections about what China can contribute to, and learn from, other peoples.     

Theoretical perspectives of supplier–buyer long-term relationships in India

Purpose: The purposes of this study are to investigate changing Indian supplier–buyer relationships and to propose an effective conceptual model using theoretically developed constructs such as power, performance, satisfaction (economic and noneconomic), conflict (economic and noneconomic), trust, cooperation, switching cost, and commitment

Methodology/approach: This study is focused on supplier–buyer relationships among Indian companies in the processed/packaged (not fresh) food business. All of the measures for the constructs were developed for and empirically tested in previous studies. Confirmatory factor analysis and path analysis were used to test the conceptual model.

Findings: First, Indian suppliers’ power sources and performance significantly influence satisfaction and conflict. Second, satisfaction and conflict are significantly related to cooperation, trust, and switching cost. Third, cooperation and trust have a significant impact on commitment.

Research implication: One of the unique aspects of the study is to analyze the differential effects of satisfaction and conflict in India. Using dichotomized (economic and noneconomic) constructs, the ways in which Indian buyers’ economic satisfaction, noneconomic satisfaction, economic conflict, and noneconomic conflict are related to other relationship constructs (power sources, performance, cooperation, trust, switching costs, and commitment) are investigated.

Originality/value/contribution: For global companies, a key requirement for success is how to develop and sustain long-term relationships with local companies. This study suggests practical and information for successful marketing strategies to establish long-term supplier–buyer relationships in India.     

Brand Loyalty Versus Store Loyalty: Consumers’ Role in Determining Dependence Structure of Supplier–Retailer Dyads

Purpose: This article aims to integrate consumers into a channel dependence framework and explores the influence of consumers’ brand loyalty and store loyalty on the dependence structure within the supplier–retailer relationship. It also examines effects of the dependence structure on perceived conflict.

Methodology/approach: The authors test the proposed triadic relationship model among department store, supplier, and consumer by collecting matched data from both retailers and consumers in a Chinese retailing channel of sports and leisure apparel. Polynomial regression in conjunction with a response surface analysis (RSA) approach is used to test the hypotheses.

Findings: The results indicate that consumers’ brand loyalty positively affects retailer’s dependence on supplier, while consumers’ store loyalty positively affects supplier’s dependence on retailer. In addition, the retailer’s dependence is higher when consumers’ brand loyalty is higher than store loyalty; the supplier’s dependence is higher when consumers’ store loyalty is higher than brand loyalty; and the retailer’s dependence increases with the increase of both consumers’ brand and store loyalty when consumers’ brand and store loyalty are equal. Moreover, supplier’s dependence has a negative linear effect on retailer’s perceived conflict, whereas retailer’s dependence has an inverted U-shape effect on perceived conflict. A retailer would perceive more conflict when the retailer is relatively more dependent on the supplier; but the symmetrical interdependence has no significant effect on retailer perceived conflict.

Research implications: Researchers are encouraged to explore channel behaviors from a network perspective. Consumers, in particular, should be included in research frameworks related to channel dependence and behaviors. Suggestions for further research on the effects of dependence on the conflict are also proposed.

Originality/value/contribution: This study goes beyond the dyadic paradigm by integrating consumers into the framework of the channel dependence structure. It develops and tests a mechanism of consumers’ brand and store loyalty influencing dependence structure within a supplier–retailer dyad. It also enriches the literature of channel conflict by exploring the effects of retailer and supplier unilateral dependence on retailer perceived conflict with RSA methods.

Practical implications: The article provides several insightful implications for managers in understanding and managing interdependence structure in business-to-business marketing, especially in supplier–retailer relationships.     

The Status of Contemporary Business Ethics Research: Present and Future

This study provides a general overview of contemporary business ethics research of the last 10 years (1997–2006) and discusses potential future research directions in business ethics based on the overview. Using citation and co-citation analysis, this study examined the citation data of journal articles, books, and other publications collected in the Social Sciences Citation Index (SSCI), wherein key research themes in business ethics studies in 1997–2006 and correlations between these themes were explored. The results show that major research themes in business ethics have shifted in the last decade from research on ethical decision making and on the relationship between corporate social responsibility and corporate performance to research on stakeholder theory in business ethics and on the relationship between consumer behavior and corporate social responsibility. The results of this study help map the invisible network of knowledge production in business ethics research and provide important insights on future business ethics research.     

The Role of Retail Equity,Value and Relational Benefits in Building B2B Relationships in Retailing

Abstract

The present paper aims to examine if variables widely studied in B2C contribute to building strong relationships in B2B markets. Moreover, it analyzes the existence of differences across retailers related to percentage of purchases from the main supplier. Through a personal survey to retail store managers regarding their relationships with their main suppliers, a structural equation model is estimated through PLS to test the hypothesized relations between retail equity, value, relational benefits, trust, and commitment. A multi-group analysis is performed to test the moderating role of the percentage of purchases from the main supplier. Three types of relational benefits identified have unequal influence on relationship value. In particular, special treatment benefits and social benefits, together with retail equity, emerge as the main drivers of value in the relationship between retailers and their main suppliers. The percentage of purchases from the main supplier plays a moderating role in some of these relations. This research provides evidence in the sense that, in the relations held by retailers with their main suppliers, retail equity contributes to relationship value creation. Relational benefits are relevant in building B2B relations since special treatment and social benefits have a positive influence on value that is positively related to trust and commitment. To build strong relations with their customers, suppliers of retailers should mainly concentrate their efforts on building brand equity and providing evidence of the existence of special treatment benefits beyond the service delivered, in view of its ultimate influence on customer trust and commitment.     

Consumer response to retailer use of cause-related marketing: Is more fit better?

Although marketers increasingly rely upon cause-related marketing strategies to increase sales, controversy exists regarding whether a retailer should partner with causes offering high or low fit levels with its core business practices. The present investigation extends prior research by examining how retailer–cause fit affects consumer evaluations of retailers’ cause-related marketing strategies. The results indicate that the effects of retailer–cause fit are moderated by consumer perceptions of the retailer's motive for engaging in cause-related marketing (Study 1), by the affinity that consumers hold for the social cause component of the campaign (Study 2), as well as by the interactive effects associated with the two moderators (Study 3).     

Antecedents of Principal–Agent Relationship Value: The Differential Impact of Social Capital and Dynamic Learning Factors

Although the critical role of relationship value to business has been widely acknowledged, a review of the extant literature reveals that understanding on antecedents of relationship value is limited to relationship-specific factors, and impacts of key customer relationship value on performance still await empirical substantiation. Grounded in dynamic learning capability and social capital perspective, this study collected a sample of 411 principal–agent relationships to examine the relative impact of predictors in creating relationship values from the supplier angle. The result shed light on the significant mediating role of dynamic learning over the linkage between social capital and relationship value.     

Relationship Value in Thai Business-to-Business Marketing

This study focuses on value in the business-to-business relationship among buyers and sellers. Relationship value has long been one of the key research areas in marketing for business to business. By examining from the perspective of the buyers, this research identifies how business buyers can use marketing benefits, product benefits, technical benefits, logistics benefits, financial benefits, risk-reduction benefits, information benefits, and strategic benefits to predict buyer–seller relationship. The study confirms significant relationships among marketing benefits, product benefits, and value in retailer–supplier relationship. The analysis from this study supports that benefit in a business-to-business relationship can be created if suppliers work on mutual benefits with customers. The results also confirm that Thai business customers will look for business partners who can provide risk reduction and marketing benefits for their business.