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Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation

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  • Tajeddini, Kayhan
  • Elg, Ulf
  • Trueman, Myfanwy

Abstract

While it is generally agreed that a customer and entrepreneurial orientation enhance company performance in large multi-national organizations, relatively little is known about how these variables influence the small retailers that form a substantial part of national economic well-being. This study investigates the potential influences of these factors on the performance of small retailers in Switzerland, because this nation has long had a reputation for creativity, innovation and a customer focus. Performance is viewed as a two dimensional concept including an effectiveness and an efficiency perspective. Data for this study were collected through personal interviews from 261 SMEs. While customer orientation is found to be positively related to both efficiency and effectiveness, results only show a positive impact from entrepreneurial orientation on effectiveness. At the same time, entrepreneurial orientation is found to be a driver of customer orientation, and thus having an indirect impact also on efficiency for the small retail firms. All in all, the study shows that small retailers do indeed put an emphasis on both customer and entrepreneurial orientation in spite of their limited resources. It also stresses that this will increase their competitive advantage. In the light of existing literature, limitations and future research directions are subsequently addressed.

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  • Tajeddini, Kayhan & Elg, Ulf & Trueman, Myfanwy, 2013. "Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation," Journal of Retailing and Consumer Services, Elsevier, vol. 20(5), pages 453-462.
    • Handle: RePEc:eee:joreco:v:20:y:2013:i:5:p:453-462
    DOI: 10.1016/j.jretconser.2013.05.004
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    Cited by:

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    3. Moudrý, Dann Vít & Thaichon, Park, 2020. "Enrichment for retail businesses: How female entrepreneurs and masculine traits enhance business success," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    4. Fabien Eymas & Faouzi Bensebaa, 2021. "Competitive strategies of small independent retailers," Post-Print hal-03179166, HAL.
    5. Tajeddini Kayhan & Mueller Stephen, 2019. "Moderating Effect of Environmental Dynamism on the Relationship between a Firm’s Entrepreneurial Orientation and Financial Performance," Entrepreneurship Research Journal, De Gruyter, vol. 9(4), pages 1-13, October.
    6. Campbell, Jeffrey M. & Park, Joohyung, 2017. "Extending the resource-based view: Effects of strategic orientation toward community on small business performance," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 302-308.
    7. Liu, Chih-Hsing & Dong, Tse-Ping & Vu, Ho Tran, 2023. "Transformed virtual concepts into reality: Linkage the viewpoint of entrepreneurial passion, technology adoption propensity and advantage to usage intention," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    8. Stefan Hirsch & David Lanter & Robert Finger, 2021. "Profitability and profit persistence in EU food retailing: Differences between top competitors and fringe firms," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 235-263, April.
    9. Grimmer, Louise & Grimmer, Martin & Mortimer, Gary, 2018. "The more things change the more they stay the same: A replicated study of small retail firm resources," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 54-63.
    10. Gilboa, Shaked & Seger-Guttmann, Tali & Mimran, Ofir, 2019. "The unique role of relationship marketing in small businesses’ customer experience," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 152-164.
    11. Héctor Cuevas-Vargas & Neftalí Parga-Montoya & Rudy Fernández-Escobedo, 2019. "Effects of Entrepreneurial Orientation on Business Performance: The Mediating Role of Customer Satisfaction—A Formative–Reflective Model Analysis," SAGE Open, , vol. 9(2), pages 21582440198, June.
    12. Planinc Tanja & Kukanja Marko & Žnidaršič Anja, 2022. "The Interplay of Restaurant SMEs’ Entrepreneurial and Environmental Characteristics, Management of the Requisite Assets, and Operational Efficiency," Organizacija, Sciendo, vol. 55(2), pages 160-177, May.
    13. Fabien Eymas & Faouzi Bensebaa, 2021. "Small independant retailers: from avoidance to competitive indifference? [Petits distributeurs indépendants : de l’évitement à l’indifférence concurrentielle ?]," Post-Print hal-03960110, HAL.
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    15. Zhi Chen & Shenglan Huang & Chong Liu & Min Min & Liying Zhou, 2018. "Fit between Organizational Culture and Innovation Strategy: Implications for Innovation Performance," Sustainability, MDPI, vol. 10(10), pages 1-18, September.

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