Does Small Store Location Matter? A Test of Three Classic Theories of Retail Location

Abstract Just how important is physical location as a source of small-firm advantage? In this paper we consider this question by testing the predictive validity of three classic perspectives: central-place theory, spatial interaction theory and the principle of minimum differentiation. In addition, we identify and test two managergrounded hypotheses focusing on locational continuity and transactional convenience. We test these hypotheses on a sample of small U.S. retail hardware stores and find significant support for central-place theory and both manager-grounded hypotheses.

[1]  J. Pearce.  What Do We Know and How Do We Really Know It , 2004 .

[2]  W. Reilly.  Methods for the study of retail relationships , 2022 .

[3]  W. Reilly.  The law of retail gravitation , 1931 .

[4]  David L. Mothersbaugh,et al.  The effects of locational convenience on customer repurchase intentions across service types , 2003 .

[5]  H. Hotelling.  Stability in Competition , 1929 .

[6]  Gary J. Castrogiovanni,et al.  Environmental Munihcence; A Theoretical Assessment , 1991 .

[7]  R. J. Kuo,et al.  A decision support system for selecting convenience store location through integration of fuzzy AHP and artificial neural network , 2002, Comput. Ind..

[8]  Anthony C. Davison,et al.  Bootstrap Methods and Their Application , 1998 .

[9]  R. Kolbe,et al.  Content-Analysis Research: An Examination of Applications with Directives for Improving Research Reliability and Objectivity , 1991 .

[10]  John Byrom,et al.  Small independent retail firms and locational decision-making: outdoor leisure retailing by the crags , 2004 .

[11]  D. Shepherd.  Learning from Business Failure: Propositions of Grief Recovery for the Self-Employed , 2003 .

[12]  P. Hall,et al.  Bootstrap Methods for Finite Populations , 1994 .

[13]  Mark S. Granovetter.  Economic Action and Social Structure: The Problem of Embeddedness , 1985, American Journal of Sociology.

[14]  J. Goldstucker.  The Selection of Retail Locations , 1959 .

[15]  R. Tibshirani,et al.  An Introduction to the Bootstrap , 1995 .

[16]  Audrey Gilmore.  Services marketing and management , 2003 .

[17]  A. Woodside,et al.  Learning why some customers shop at less convenient stores , 2001 .

[18]  W. Mackaness,et al.  The spatial knowledge of retail decision makers: capturing and interpreting group insight using a composite cognitive map , 2000 .

[19]  Reginald A. Litz,et al.  Franchising for sustainable advantage? Comparing the performance of independent retailers and trade-name franchisees , 1998 .

[20]  Gregory G. Dess,et al.  Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit , 1984 .

[21]  F. Unsal,et al.  Attributes of Sound Banking as Perceived by Small Businesses: Results of a Survey , 1987 .

[22]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[23]  D. Rubinfeld,et al.  Econometric models and economic forecasts , 2002 .

[24]  G. J. Hoogstra,et al.  Explaining Firm Employment Growth: Does Location Matter? , 2004 .

[25]  B. Berry,et al.  Central places in Southern Germany , 1967 .

[26]  Stephen Brown.  Retail Location Theory: Evolution and Evaluation , 1993 .

[27]  D. Dillman.  Mail and telephone surveys : the total design method , 1979 .