Craft Retailers' Criteria for Success and Associated Business Strategies

This research was designed to fill the void in understanding how art–related retailers define and achieve success. A two–phase data collection process was implemented. Preliminary personal interviews were conducted with 12 craft retailers followed by a mailed survey to 1000 craft retailers in nine southeastern U.S. states. Factor analysis was employed to reduce the number of items for defining success. Cluster analysis followed to develop empirical groupings of craft retail businesses based on the success factor scores, of which four different groups were identified. Multivariate analysis of variance (MANOVA) and analysis of variance (ANOVA) were used to compare retail clusters related to business strategy variables of competitive strategies, product assortment, pricing, and distribution strategies, and networking activities. Significant differences were found in the craft retailers' business strategies used to achieve success. Craft retail entrepreneurs were found to define success with both traditional criteria such as profit and growth and also with intrinsic factors such as personal satisfaction and the opportunity to elevate the craft tradition. Successful small craft retail firms offered more focused product assortments of specialized craft products, implemented more differentiated strategies of stocking unique crafts in their assortments, as well as offering unique services to educate consumers about crafts, craft artisans, and a region's culture. Craft retailers who reported greater success did not engage in competitive pricing. Collaborative strategies included networking among family, friends, and business peers.     

Business Strategy and Performance: An Assessment of Retailers in Guatemala

Although competitive strategy has attracted much attention in the literature, a limited number of studies have attempted to investigate the strategy-performance nexus within the context of local business units in emerging economies. This study investigates the relationship between competitive strategies and business performance among industry in Guatemala, Central America. Data from 364 retail firms in Guatemala suggest that in terms of both financial and operating performance retailers employing a combination of the cost leadership and differentiation strategies outperformed those adopting only one of the two pure strategies.     

The Impact of Resources and Strategic Orientation on Small Retail Firm Performance

This study examined the relationship between firm resources, strategic orientation, and performance in small retail firms. Surveys were mailed to small retailers throughout Tasmania, Australia. Responses (n = 384) showed resources positively related to performance were informational (business information systems) and access to financial capital. Strategic orientation (prospector and defender/analyzer) were positively related to performance. Further, both a prospector and defender/analyzer orientation positively mediated the relationship between resources and performance, the former being the stronger mediator. The results of this study demonstrate which firm resources relate to small retail firm performance, and the positive effect, in particular, of a prospector strategic orientation.     

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.     

Operational planning and competitive strategies of male and female retailers

Interest in the managerial practices of females in business has increased over the past decade due to women's increased representation in business. Anecdotal evidence has suggested that women approach decision making differently from men. The purpose of this study is to determine if gender differences regarding managerial strategies exist in the retail setting. Targeted managerial strategies focused on short-term planning processes (personnel, financial, inventory and market planning) and competitive strategies in operation (differentiation, cost leadership and focus). In a sample of 459 retailers from a twelve-state region, MANOVA was used to determine if significant differences in managerial strategies existed between genders. The data on retail competitive strategies suggest that men and women more likely than male business owners to recognize in the importance of differentiation and focus as retail competitive strategies in their business operations. Gender differences were also found in the operational planning areas of market and inventory planning.     

The role of organizational justice and social interaction in mitigating the negative effects of high-performance member retailers on strategic integration

Drawing on resource-based view, social exchange theory, and organizational justice theory, this study tests the link between high-performance member retailers (HPMRs) and strategic integration to retail buying groups, and the mediation and moderation of social integration and organizational justice, respectively. Using structural equation modeling, we analyze data from 241 independent retailers participating in retail buying groups in Japan. Results reveal that although HPMRs are negatively associated with strategic integration, they also increase strategic integration via enhanced social interaction with other member retailers. Additionally, organizational justice by buying group headquarters weakens the negative link between HPMRs and strategic integration. The study newly shows how member retailers’ past performance characteristics, the role of buying group headquarters, and member retailers’ interactions affect strategic integration to retail buying groups. The findings contribute to resource-based view, social exchange theory, and organizational justice theory by examining how retail buying groups can encourage HPMRs’ strategic integration using social interaction and organizational justice as boundary conditions. Practical and theoretical implications are described.     

Retailers with traits of consumer: Exploring the existence and antecedents of brand loyalty in small unorganized retailers

Retail in most emerging countries, like India, is dominated by the informal sector consisting of small unorganized retailers and marketers selling through them desperately want to win them over because it can be a powerful competitive advantage in these markets.Small unorganized retail store is a unique setting because most of these stores are owned and managed by individual proprietors who are neither schooled in systematic business decision making and nor have access to professional expertise and scientific tools to assist in taking business decisions in a systematic way. With loads of decisions to be made by this individual, it can be assumed that heuristics and common sense drive a lot of their business decisions and this makes them very similar to the decision making done by the end consumers, who also engage in buying decisions but are not scientific in their approach.Based on this similarity, this study attempts to explore a simple but profound question that like individual consumers, do these retail customers’ buying decisions also get affected by brand loyalty? In that direction, the study assesses the role of three variables - salesperson quality, self-experience with the brand and perceived company support, for predicting brand loyalty in small unorganized retailers.Using Structured Equation Modelling on data collected from 543 retailers, the proposed hypothesized paths have been tested. The results strongly support the proposition made. This study extends the application of the existing attitudinal – behavioural framework of brand loyalty to retailers and puts forward a vital and a unique way for marketers to get these retailers on-board and work as an influencer to push their brand.     

Organizational climate for innovation and creativity – a study in Swedish retail organizations

ABSTRACT

Innovation in retailing is under-investigated in academia and yet a highly relevant concern given the current changes in the retail landscape. Although retailing is often characterized by a dynamic and highly competitive environment, retail organizations are not often considered as ‘innovative,’ at least when compared with manufacturing industries, or when using existing innovation frameworks in academic literature. There are many aspects of innovation discussed in literature and a need to consider different ways of looking into retail’s innovativeness. Among them, the importance of organizational climate on influencing creativity and innovation may help explain how to enable innovation in service organizations, such as retailers. The purpose of this study is to evaluate the climate for innovation and creativity and examine how retail organizations perceive it. We applied a mixed-methods approach using an established organizational climate survey and semi-structured, one-on-one interviews regarding the innovation climate and other aspects of innovation management in the companies. The study shows that despite retail organizations still struggling to incorporate innovation on a strategic level and move beyond incremental developments in their operations, retailers score positively on being innovative regarding certain dimensions of the organizational climate survey. This indicates that retailers (especially conventional ones) could benefit from challenging current practices and moving towards becoming more active and strategic innovators since their organizational climate to a certain extent allows for it. Respondents within the organizations also express a need for better innovation support, whether it is through established structures and processes or an improvement in the current conditions of the organizational climate. How retailers could enable themselves to become more active innovators – based on what we know that retailers look more towards entrepreneurship and continuous development as a driving force rather than formalized innovation practices per se – is a potential avenue for further research.     

Configurations of business strategy and marketing channels for e-commerce and traditional retail formats: A Qualitative Comparison Analysis (QCA) in sporting goods retailing

This article applies a configurational approach to study the fit between retail format, business strategy, and multi-channel setup. Its empirical material consists of five case studies, and a data set of 74 sporting goods retailers in Sweden. Our results show that a retailer can create strategic advantages when its multi-channel setup fits with its business strategy, and that retail format is important for explaining differences in growth and profit, the former being assigned to e-commerce and the latter to physical stores. Moreover, the study reveals that to some extent online channels also have positive performance implications for physical store retailers.     

Brand experience anatomy in retailing: An interpretive structural modeling approach

In today's highly competitive retail environment, retailers have recognized and embraced the concept of offering experiences with the retail brand across various channels beyond new launches and lower prices. To manage the experiences associated with a retail brand, retailers need to understand the concept of brand experience in retailing and the factors that actually comprise it. Interestingly, very few studies have imparted an understanding of brand experience in retailing. This study seeks to understand the retail brand experience and model the interrelationships among retail brand experience variables using interpretive structural modeling (ISM). Retail brand experience variables used in this study have been identified from existing literature on ‘brand experience’ and from brainstorming sessions with academicians and retail industry experts. Our findings show that the variables, namely, packaging of own label brands, customer billings, order and application forms, point-of-sales (i.e., shelf talkers) and recommendation by a salesperson have a high degree of influence and exhibit low dependence. These variables require a great deal of consideration due to their strategic significance to retailers. The approach applied in this study will enhance the understanding of retailers for improving the performance through managed retail brand experience initiatives.     

Orchestrating retail in small cities

The structural transformation of retail is challenging for many small cities. Rather than seeing the retailer as a sole player, this article considers retail in small cities to be shaped in a retail eco system consisting of many different actors besides retailers such as municipalities, landlords, business/city organisations, customers/citizens. The key contribution of the article is to provide new perspectives on the challenges and management of retail in small cities by applying a metaphor from the culture and fine arts sector, orchestration. The article is based on a combination of in-depth interviews and participant observation at three small cities in Sweden. In total, 38 interviews have been conducted with representatives of retailers, municipality, business/city associations and landlords.The general aspects of retail eco system as an orchestra are presented according to Klein and Kozlowski, (2000) multilevel constructs: compiled (bottom-up), composite (top-down) and emergent (culture, history). Thereafter, a number of orchestration techniques, structured around Pine and Gilmore, 1999 dimensions of experiences are presented. The article shows that the future of retailing in small cities is not merely dependent on the retailers, but on collaborations with other retailers, landlords and municipalities. An understanding of consumer culture and development of entrepreneurship culture and networks is crucial for survival and prosperity. Furthermore, rather than copying strategies developed both in and for metropolitan areas, there is a need to build on and strengthen the characteristics of the local retail eco system and the community brand identity.     

Traces of foreign retailers – local knowledge-spillovers and strategy adaption within retail internationalization

ABSTRACT

Since the 1990s certain retail companies have evolved into some of the largest and most dispersed transnational corporations worldwide. However, within the ‘new era of retail distribution’ retailers are increasingly divesting from foreign markets. This study addresses these recent and under-explored dynamics by revealing the traces transnational retail corporations leave after divesting from a country. It explores the aspect of learning of host market retailers from entering transnational corporations (TNCs) and examines how foreign knowledge is adjusted in the business strategies of these local actors. It takes a fresh empirical slant using qualitative interviews with host market retail managers including former TNCs’ subsidiaries operating under domestic ownership. The emerging economy of Turkey serves as an empirical example. The paper finds that foreign retailers transfer firm-specific resources to the local retail through (1) demonstration and imitation, (2) vertical linkages with suppliers, (3) joint ventures and acquisitions, and (4) labor turnover of TNC trained staff. Certain successful local companies adjust the foreign knowledge based on their local knowledge and strengths, their high level of flexibility and deep territorial embeddedness, and create ‘hybrid’ business strategies. These findings suggest that dynamic capabilities are crucial to successful retailing in an international competitive environment. TNC managers should work with local staff in partnerships of equals and managers of locally operating companies should incorporate new knowledge by hiring TNC trained staff.     

Retail Market Power in a Shopping Basket Model of Supermarket Competition

Supermarket retailers typically operate with relatively low margins, suggesting a highly competitive retail environment. However, despite the fact that consumers purchase an entire shopping basket at a time from supermarkets, this evidence is largely based on models of retail competition with single-category purchases. In this paper, we develop and test an empirical model of retail price competition that explicitly accounts for the effect of demand complementarity among items in consumer shopping baskets. Relative to the case where consumers purchase products with independent demands, we demonstrate that equilibrium prices are higher for all items when retailers take demand-complementarity into account. Our findings indicate that non-price strategies intended to encourage complementarity, such as co-merchandising, strategic shelf-positioning, or featuring complementary goods tend to soften price competition, and lead to higher equilibrium prices.     

Strategic groups and performance in the Spanish hotel sector

This study uses the strategic group theory to identify business strategies and competitive advantages implemented by Spanish hotels, which are grouped together according to three variables (size, chain affiliation, and category) and the degree of development of the different business strategies. An analysis carried out with the aim of checking the potential existence of significant differences in performance among the strategic groups revealed that the highest performance levels are achieved by larger-sized, chain-affiliated, and higher-category hotels as well as by establishments which base their competitive advantage on category and capacity or size and internal management.     

Pioneering the Development of a Scale to Measure E-Tailer Image

ABSTRACT

Given the risks and returns associated with conducting business online, practitioners and academics alike are urged to gain an understanding of the strategic variables that can offer firms competitive advantages. A strategic variable of importance to traditional retailers is the image that is promoted to consumers. To date the concept of online retail or “e-tail” image has not been assessed in marketing literature. This study forwards the development of a multi-dimensional scale to measure e-tailer image. By way of extensive review of retail image literature, the authors develop a six-dimensional definition of e-tailer image consisting of the functional dimensions of price, merchandise, and service, and the affective dimensions of atmosphere, self/site image congruence, and convenience. Through interviews with online consumers and experts in the field, an item pool is generated to represent e-tailer image. The results of three empirical tests, the first consisting of a student sample and the second and third consisting of online shoppers, are reported. Utilizing exploratory/confirmatory factor analysis and correlation analysis, findings confirm the proposed dimensionality, reliability and validity of the e-tailer image scale. The most important contribution of the study revolves around the fact that it takes the first logical step in measuring a very illusive, yet crucial, strategic marketing variable.     

Incremental Innovation and Business Performance: Small and Medium-Size Food Enterprises in a Concentrated Industry Environment

Past studies have analyzed issues pertaining to the definition of innovation, methods of measuring innovation and the relationship between organizational characteristics and innovation orientation. Extant studies have adopted a large business or a technologically intense context of study. By studying the adoption of new products, methods, systems, markets, and supply sources in small and medium-size seafood retail enterprises, this study reviews innovation and the adoption of innovation in a broader and novel context. Seafood retailers in this study operate in a concentrated industry environment where two large supermarket chains account for more than 70 percent of national food retail sales. The seafood retailers operate in a highly competitive environment, the industry is maturing, the firms are not very advanced technologically, and the sector has a disproportionately large number of firms owned and operated by persons of non-English speaking backgrounds. The results of the study indicate that incremental innovation offers substantial competitive advantages to small and medium-size firms, that incremental innovations can be adopted and operationalized rapidly by entrepreneurs with different cultural backgrounds and skills, and that small and medium-size firms that focus on sales and marketing innovations are profitable and are able to compete successfully with large businesses.     

“互联网+”还是“回归实体”？——消费模式与零售企业战略选择

互联网与移动互联网技术迅速发展，带动了许多实体零售企业投身于电子商务的创新实践，但也不乏亚马逊、阿里巴巴等网络零售企业通过投资、并购等方式积极涉足实体零售企业。文章试图解释企业进行不同战略选择的原因，采取“互联网+”或是“回归实体”的依据。在分析互联网对零售企业影响的基础上，文章建立了包括消费者与零售企业在内的一般均衡模型，分析了消费者选择不同零售企业的依据，以及零售企业的应对之策。分析结果表明，消费者在不同零售商店的相对支出比例取决于零售商店提供服务组合的相对效率。因此，基于“有限商圈”与“有限品类”的经营战略成为企业扩大销售收入的关键，现网络零售与实体零售战略选择本质上可以归纳为品类专业化与区域专业化之间的收益比较。     

Market Orientation in the Chilean Small Business Context

Abstract

Market orientation has been considered a key factor in successful business operations across different markets. To test this assertion, the authors examine the influence of a firm's market orientation on small business performance in the Chilean retail environment. They go on to report empirical information about the characteristics of the market-oriented retailers in Chile. The Kohli, Jaworski, and Kumar (1993) MARKOR scale is used in the study to assess the market orientation in the context of a developing country environment. Data for the study were collected from small retailers in Chile through self-administered questionnaires using a drop-off/pick-up method. The results show a significant correlation between market orientation and small business performance. Path analyses found that the best structure among the Market Orientation dimensions is: Intelligence Generation→ Intelligence Dissemination → Responsiveness. Moreover, these performance measures differed significantly among the three different partitions obtained using a k-means cluster analysis. The findings indicate that the MARKOR scale is both valid and reliable in a diverse Chilean small business environment.     

Retail environment and manufacturer competitive intensity

We study how the intensity of competition and the degree to which manufacturers enjoy market power depends on the retail environment in a given market. Past research has discussed the growing importance of retailers and the power they enjoy over manufacturers. Yet, the empirical literature to date has not determined which retail characteristics have the largest impact on competitive behavior.Our starting point is the estimation of a structural demand-and-supply model, where both consumers’ decisions and the strategic interactions between manufacturers and retailers are explicitly modeled. We identify the type of competitive behavior of manufacturers by measuring the deviation from a Bertrand-Nash equilibrium. This measure of competitive conduct is expressed as a function of key retail characteristics such as size of the retailer, its assortment depth, and category expertise.We illustrate the proposed approach using data for the ground coffee category in Germany. Our findings indicate that retail characteristics have indeed a significant effect on competitive intensity among upstream firms and on their ability to exercise market power. Hence, a manufacturer considering entry into a new market should not only take into account its competitors but also the specifics of the retail environment in this market.     

Hypermarkets and the Small Retailers in Malaysia: Exploring Retailers' Competitive Abilities

The emergence of multinational retailers, especially in grocery retailing, has changed the retail scenario in Malaysia over the last decade. In the past, grocery retail formats such as supermarkets, minimarkets, and night markets dominated the Malaysian retail scene, consumers are now given the choice of shopping in large retail outlets where new retail formats such as hypermarkets, warehouse clubs, and superstores now thrive and are increasingly gaining in popularity. Interestingly, large retail concepts are predominantly associated with multinational retailers such as Carrefour, Makro, Giant, and Tesco. The presence of large retailers brings with it the question of dominance and implications of changing customer preferences. This study assesses the perception of small retailers toward their abilities to compete effectively in an industry where large, multinational retailers appear to be dominating. It appears, however, that the small retailers possess distinctive qualities in relation to their strategic inputs that can essentially differentiate them from their larger competitors. It is suggested that some regulatory measures especially by local authorities are necessary, but this must not be to a point of curbing healthy competition among the different types of retailers.