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Levels of strategy and performance in UK small retail businesses

Phil Megicks (University of Plymouth, Plymouth, UK)

Management Decision

ISSN: 0025-1747

Article publication date: 10 April 2007

7696

Abstract

Purpose

This study aims to investigate the way in which small retailer performance is influenced by strategy at different levels. It also aims to propose that business level strategy is more important to success than functional level strategy in small retail firms, as this is what enables them to distinguish their business from competitors and effectively set about competing in their markets.

Design/methodology/approach

Data were collected from a mail survey of 305 independent retailers in the UK. Multivariate statistical methods were used to develop appropriate variables and explore the relationships between level of strategy and performance.

Findings

The results indicate that business level strategy variables have a significant influence on performance whereas functional levels do not when their combined effects are analysed using hierarchical regression modelling.

Research limitations/implications

The caveats normally associated with survey methods apply, as do those related to the use of cross‐sectional, self‐report, and managerial perceptions data. Implications for retail strategy theory and small retailers' performance are addressed.

Practical implications

The importance of business level strategy generally and its specific elements are considered with a view to providing guidance to management decision makers and policy advisors.

Originality/value

Reliable measures for retail strategy variables are developed in the paper. The research distinguishes the performance effects of retail business strategy from retail functional strategy and supports the view that business strategy decisions are superior in their market significance over operational retail mix decisions.

Keywords

Citation

Megicks, P. (2007), "Levels of strategy and performance in UK small retail businesses", Management Decision, Vol. 45 No. 3, pp. 484-502. https://doi.org/10.1108/00251740710745098

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

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