CAN TRADITIONAL RETAILERS USE STRATEGY TO FIGHT AGAINST MODERN ATTACKS?
DOI:
https://doi.org/10.47312/ambr.v3i1.128Abstract
Despite rapid growth in online type, the majority Indonesian retail market is offline shopping because of households disperse across thousand cities and islands. However, the threat comes from corporatized modern retailers. Typically, attacks from modern retailers in the form of franchised minimarkets endangered the existence of traditional retailers which generally are small sized and independently owned by individual or household. This research investigates how traditional retailers can deliver a strategic response to the presence of modern retailers, and to examine whether there are differences in performance among business entities that use different strategic responses. We also investigate if there are differences, which strategic response would give the best result in performance. Questionnaires were distributed to 109 respondents using convenience sampling. An ANOVA was done at respective types of retailers' buyers. There is no significant evidence that the strategic response developed by traditional retailers differed from one another. Furthermore, we found that the performance of traditional retailers are below modern retailers, except for those that belong to a higher tier of performance. Higher tier traditional retailers are the best strategic group in traditional retailers and their performance statistically could equate to the performance of modern retail.
Keywords: Indonesian retail market, small-scale retailer strategy, strategic group, strategic response
Downloads
References
AC Nielsen. (2010). Retail Audit, unpublished.
Acquaah, M., & Ardekani, M. Y. (2008). Does the implementation of a combination competitive strategy yield incremental benefit? A New Perspective fom a transition economy in Sub Saharan Africa. Journal of Business Research, 61(4), 346-354.
Amoako-Gyampah, K., & Acquaah, M. (2008). Manufacturing strategy, competitive strategy, and firm performance: An empirical study in developing economy environment. Journal of Production Economics, 111(2), 575-592.
Beal, R. M. (2000). Competing effectively: Environmental scanning, competitive strategy, and organisational performance in small manufacturing firms. Journal of Small Business Management, 38(1), 27-47.
Berman, B., & Evans, J. R. (2001). Retail Management: A Strategic Approach. New Jersey: Prentice Hall.
Cochran, W. G. (1963). Sampling Techniques 2nd Ed. New York: John Willey and Sons, Inc.
Conant, J. S, Smart, D. T., & Mendez, S. R. (1993). Generic Retailing Types, Distinctive Competencies, and Competitive Advantage. Journal of Retailing, 69(3), 254-279.
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16, 297-334.
Dess, G.G., & Robinson R. B. Jr. (1984). Measuring organizational
performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic
Management Journal, 5(3), 265-273.
Delios, A., & Beamish, P. W. (2001,2017). Survival and profitability: the roles of experience and intangible assets in foreign subsidiary performance. Academy of Management Journal, 44(5 ).
Douglas, J. D., & Donald, L. T. (1969). Retailing: an economic overview. New York: Free Press.
Furrer, O. D., Sudharshan, H. T., & Maria, T. A. (2008). Resource
configurations, generic strategies, and firm performance: Exploring the parallels between resource-based and competitive strategy theories in a new industry. Journal of Strategic Management, 1(1), 15-40.
Freischlad, N. (2016). India Vs Indonesia: how investors like sequoia think about it. www.techinasia.com
Gamble, J., & Thompson, A. A. (2011). Essentials of Strategic Management. Mc Graw Hill
Grimm, C. M., Lee, H., & Smith, K. G. (2006). Strategy as action: Competitive dynamics and competitive advantage. Oxford University Press.
Guy, C. (1990). The retail development process: location, property and planning, London and New York.
Halaj, G., & Zochowski, D. (2009). Strategic group and bank’s performance. Financial Theory and Practice, 33(2), 153-186.
Hansen, G. S., & Wernerfelt, B. (1989). Determinants of Firm Performance: The relative important of Economics and organizationals Factors. Strategic Management Journal, 10(5), 399-411.
Kluyver, C. A. D., & Pearce, J. A. (2005). Strategy: View from the top. Prentice Hall.
Kor, Y. Y., & Mahoney, J. T. (2005). How dynamics, management, and governance of resource deployments influence firm-level performance. Strategic Management Journal, 26(5).
Kraatz, M. S., & Zajac, E. J. (2001). How organizational resources affect strategic change and , performance in turbulent environments: theory and evidence. Organization Science, 12(5), 632-657.
Levy, M., & Weitz, B. (2012). Retailing Management. Diego Torres
Matthews, J. R. (2011). Assessing Organizational Effectiveness: The Role of Performance Measures. The University of Chicago Press Journal, 81(1).
Megicks, P. (2001). Competitive Strategy Types in the UK independent retail sector. Journal of Strategic Marketing, 9(4), 315-328.
Michael, L., & Barton, A. (2004). Retail management. McGraw Hill.
Morgenstein, M., & Strongin, H. (1992). Modern Retailing: Principles and Practices. John Willey & Sons, Canada.
Porter, M E. (1979). The structures within industries and company performance.
Review of economics and statistics, 61(2), 214-227. Harvard Business School, Boston MA.
Porter, M. E. (1980). Competitive Strategy. New York: The Free Press.
Praharsi, Y.,Wee, H. M., Sukwadi, R., & Padilan, M.V. (2014). Smallindependent retailers vs organized retailers: An empirical study in Indonesia economics of service industries. Journal of Retailing and Consumer Services, 21, 108-117
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
The journal allow the authors to hold the copyright without restrictions and allow the authors to retain publishing rights without restrictions.
The journal allow the authors to hold the copyright without restrictions and allow the authors to retain publishing rights without restrictions. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
This work is licensed under a Creative Commons Attribution 4.0 International License.
