Relations between merchandising information orientation, strategic integration and retail performance
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 11 June 2021
Issue publication date: 3 January 2022
Abstract
Purpose
The purpose of this study is to investigate the conditions under which small independent retailers can improve their business performance by adopting a merchandising information orientation and strategically integrating into retailer buying groups.
Design/methodology/approach
This study tests hypotheses using a hierarchical multiple regression model and data obtained from 241 supermarket retailers that are existing members of buying groups in Japan.
Findings
The results indicate that merchandising information orientation alone may not be a beneficial strategy for small independent retailers to improve their business performance; however, by combining a merchandising information strategy with strong strategic integration with a buying group, optimal benefits can be achieved.
Practical implications
The findings highlight the potential benefits small independent retailers can gain from buying groups when pursuing a merchandising information orientation, which may prompt such retailers to actively integrate the policies and activities of the buying group into their business strategy.
Originality/value
The authors conceptualise retailers’ merchandising information in a model that demonstrates the link between a firm’s information strategy and its performance from the perspective of resource-based theory. Thus, this study advances the knowledge of the strategic behaviours of small independent retailers and provides valuable information for buying groups in the retail sector.
Keywords
Acknowledgements
The authors gratefully acknowledge financial support from Japan Society for the Promotion of Science through Grant-in-Aid for Scientific Research (Project Number: 20K02001).
Citation
Kim, C., Miao, M. and Hu, B. (2022), "Relations between merchandising information orientation, strategic integration and retail performance", International Journal of Retail & Distribution Management, Vol. 50 No. 1, pp. 18-35. https://doi.org/10.1108/IJRDM-07-2020-0244
Publisher
:Emerald Publishing Limited
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