Editorial

Citation

Towers, N. (2015), "Editorial", International Journal of Retail & Distribution Management, Vol. 43 No. 7. https://doi.org/10.1108/IJRDM-04-2015-0053

Editorial

Article Type: Editorial From: International Journal of Retail & Distribution Management, Volume 43, Issue 7.

There is a consumer, small retailer and distribution management emphasis to this issue. The topics of the submissions include the impact of market orientation (MO) and entrepreneurial orientation (EO) on business performance among small retailers, the association of e-channel resources with market coverage of small local retailers, consumers’ motivation for local food products or locavores to purchase in local retail channels vs traditional supermarkets, supplier integration in the assortment/range management and performance management with different degrees of process integration in retail supply chains.

The first contribution by Kajalo and Lindblom investigates the impact of MO and EO on business performance among small retailers. In particular, the goal is to understand and determine to what extent MO and EO influence firm performance directly, and to what extent MO and EO are connected to performance via marketing capabilities. The developed conceptual model was tested using structural equation modelling (SEM) using a sample of over 200 small retailers. The result of the SEM model shows that both MO and EO act as a basis for improved business performance among small retailers. However, the performance impact of MO and EO was not that straightforward. Based on the research findings, it can be argued that both MO and EO require marketing capabilities to more fully unlock their value-creating potential among small retail firms. The study provided new insights regarding the impact of MO and EO on business performance in the context of small retail firms and in particular by demonstrating the routes through which MO and EO impact on performance.

The second paper by Cho investigates the association of e-channel resources with market coverage of small local retailers. The survey-based study collected data from nearly 150 North American florists who use web sites as e-channels. The data were analysed through a set of multinomial logistic regressions, and multiple analysis of covariance (MANCOVA). Measurement validation is conducted before data analysis. Considering two resources of e-IT competence and e-service agility the study finds that e-service agility is significantly associated with market coverage. The paper also verifies that small local retailers who have wider market coverage than their competitors achieve higher performance from an e-channel. However, the retailers with wider market coverage do not have higher total retail sales. Practitioners should carefully consider the imbalance between the cost of resource development to enable market extension and the eventual performance return. Market extension requires a high level of e-service agility, but the corresponding performance return may be inadequate. This finding advises the owners or managers of small local retailers to have a complete resource plan for the effective use of an e-channel.

The third contribution by Spielmann and Bernelin seeks to understand what motivates consumers, in particular consumers of local food products or locavores, to purchase in local retail channels vs traditional supermarkets. Using the Theory of Reasoned Action, and reviewing the literature on traceability, social relationships, involvement, values, motivation and distribution channels, a developed model explaining the antecedents and consequences of local food consumption for both locavores and traditional supermarket consumers is proposed. Face-to-face interviews were conducted in supermarket and farmers market contexts in a mid-sized city in France. A SEM was used to explain the relationship between the examined variables. The results suggest that consumers in traditional food distribution channels are not very involved with local food products. Also the research shows that for locavores, traceability and social links are positively related to involvement with local food products, which lowers price perceptions and positively influences utilitarian shopping value.

The aim of the study by Ellström is to explore supplier integration in the assortment management of builders’ merchants by identifying potential factors both enabling supplier integration and mediating the success of supplier integration. A qualitative case study method was used, in which interviews and participative observations were conducted with a timber supplier and builders’ merchants in the UK. The findings suggest the likelihood that a supplier and a retailer will implement supplier integration was positively affected by the retailer’s format as a large chain with several product categories represented in its stores and the retailer’s trust in the supplier. Effectiveness and efficiency of supplier integration was mediated by the number of different retail formats represented by the retailers, the ability of the supplier to determine cost drivers in its operations and a homogeneous market, meaning that local circumstances have limited effect on demand. The paper uses a contingency perspective to explore supplier integration and targets individual buyer-supplier relationships. It uses a dyadic perspective and considers how supplier integration affects the dyad, rather than only the buyer. The findings are exploratory and further testing of the propositions, using a wider empirical sample, is required.

The final contribution by Forslund explores two retail supply chains that handle performance management with different degrees of process integration, in order to generate propositions on factors that affect performance management process integration. One daily groceries supply chain and one home decorating supply chain each consisting of one product manufacturer, one wholesaler and one retailer, are described with an exploratory case study approach. The analysis is focused on proposition generation based on differences and similarities in the descriptions. The descriptions of the two supply chains’ industries, products, relations and performance management processes showed large differences. Their degrees of performance management process integration were also different, classified as one high and one low degree of integration. Six propositions related to industry standard, demand for logistics service performance, product brand, dependency, business process integration and trust, seem to be positively related to the degree of performance management process integration. Some insights on integration in a vertically integrated supply chain were also presented. Practitioners can get insights from studying the descriptions of performance management process integration in two retail supply chains.

Neil Towers