Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation |
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| Authors: | Kayhan Tajeddini Ulf Elg Myfanwy Trueman |
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| Institution: | 1. School of Economics and Management, Lund University, Sweden;2. School of Management, University of Bradford, UK;1. School of Business, Public Administration and Information Sciences, Long Island University 1, University Plaza Brooklyn, NY 11201, USA;2. Department of Marketing & Management, College of Business & Entrepreneurship, Texas A&M University Commerce, TX 75428, USA;1. Université du Québec à Trois-Rivières, Ringuet 3140, 3351 Boulevard des Forges, CP 500, Trois-Rivières, (QC), Canada G9A 5H7;2. University Montpellier 1, MRM, Case 028, Place Eugène Bataillon, 34095 Montpellier cedex 5, France;3. SKEMA—University Lille Nord de France, Avenue Willy Brandt, 59777 EURALILLE, France;1. Griffith Business School, Department of Marketing, Logan Campus, Griffith University, University Drive, Meadowbrook, QLD 4131, Australia;2. School of Advertising, Marketing and Public Relations, Queensland University of Technology, Gardens Point Campus, Brisbane, Queensland 4001, Australia;1. MRM—Montpellier Research in Management, INSEEC Paris, 27 Avenue Claude Vellefaux, 75010 Paris, France;2. MRM—Montpellier Research in Management, IUT—University of Montpellier 2, 99 avenue d''Occitanie, 34095 Montpellier Cedex 5, France;3. CERAG, IUT II—University of Grenoble, Place Doyen Gosse, 38 031 Grenoble Cedex, France;1. Louisiana Tech University, Department of Marketing and Analysis, Louisiana Tech University, Ruston, LA71272, USA;2. Bradley University, 405 Baker Hall, Peoria, IL 61625, USA;3. Reims Management School, 59 rue Pierre Taittinger—BP 302, 51061 Reims Cedex, France;4. Georgia State University, Room: 1339, RCB Building, USA |
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| Abstract: | While it is generally agreed that a customer and entrepreneurial orientation enhance company performance in large multi-national organizations, relatively little is known about how these variables influence the small retailers that form a substantial part of national economic well-being. This study investigates the potential influences of these factors on the performance of small retailers in Switzerland, because this nation has long had a reputation for creativity, innovation and a customer focus. Performance is viewed as a two dimensional concept including an effectiveness and an efficiency perspective. Data for this study were collected through personal interviews from 261 SMEs. While customer orientation is found to be positively related to both efficiency and effectiveness, results only show a positive impact from entrepreneurial orientation on effectiveness. At the same time, entrepreneurial orientation is found to be a driver of customer orientation, and thus having an indirect impact also on efficiency for the small retail firms. All in all, the study shows that small retailers do indeed put an emphasis on both customer and entrepreneurial orientation in spite of their limited resources. It also stresses that this will increase their competitive advantage. In the light of existing literature, limitations and future research directions are subsequently addressed. |
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| Keywords: | Customer orientation Entrepreneurial orientation Small-sized retailers Differentiation Effectiveness |
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