IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v93y2017i2p241-251.html
   My bibliography  Save this article

The Role of Service Operations Management in New Retail Venture Survival

Author

Listed:
  • Patel, Pankaj C.
  • Guedes, Maria João
  • Pearce, John A.

Abstract

While the factors related to the survival of established retail firms are well researched, current understanding of drivers of new retail venture survival is limited. We assess the influence of retail operations characteristics on the survival of new retail ventures. Based on data from 15,901 Portuguese retail ventures that were founded between 2006 and 2010 and followed until 2014, the new retail ventures with faster inventory turnover or higher staff expenses per employee had a higher likelihood of survival while higher investment in intangible assets had a negative but negligible effect on survival. The implications of these findings for entrepreneurs of new retailing ventures are discussed.

Suggested Citation

  • Patel, Pankaj C. & Guedes, Maria João & Pearce, John A., 2017. "The Role of Service Operations Management in New Retail Venture Survival," Journal of Retailing, Elsevier, vol. 93(2), pages 241-251.
    • Handle: RePEc:eee:jouret:v:93:y:2017:i:2:p:241-251
    DOI: 10.1016/j.jretai.2017.03.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022435917300180
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretai.2017.03.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Forza, Cipriano & Filippini, Roberto, 1998. "TQM impact on quality conformance and customer satisfaction: A causal model," International Journal of Production Economics, Elsevier, vol. 55(1), pages 1-20, June.
    2. Nilsson, Pia, 2016. "The influence of related and unrelated industry diversity on retail firm failure," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 219-227.
    3. Magali Jara & Gérard Cliquet, 2012. "Retail brand equity: Conceptualization and measurement," Post-Print halshs-00675161, HAL.
    4. Shaoxuan Liu & Kut C. So & Fuqiang Zhang, 2010. "Effect of Supply Reliability in a Retail Setting with Joint Marketing and Inventory Decisions," Manufacturing & Service Operations Management, INFORMS, vol. 12(1), pages 19-32, March.
    5. Jonathan B. Berk & Richard Stanton & Josef Zechner, 2010. "Human Capital, Bankruptcy, and Capital Structure," Journal of Finance, American Finance Association, vol. 65(3), pages 891-926, June.
    6. Marc Gruber, 2004. "Marketing In New Ventures: Theory And Empirical Evidence," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 56(2), pages 164-199, April.
    7. Jeff Shockley & Lawrence A. Plummer & Aleda V. Roth & Lawrence D. Fredendall, 2015. "Strategic Design Responsiveness: An Empirical Analysis of US Retail Store Networks," Production and Operations Management, Production and Operations Management Society, vol. 24(3), pages 451-468, March.
    8. Stewart Thornhill & Raphael Amit, 2003. "Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View," Organization Science, INFORMS, vol. 14(5), pages 497-509, October.
    9. Sergey Rumyantsev & Serguei Netessine, 2007. "What Can Be Learned from Classical Inventory Models? A Cross-Industry Exploratory Investigation," Manufacturing & Service Operations Management, INFORMS, vol. 9(4), pages 409-429, April.
    10. Ryan Decker & John Haltiwanger & Ron Jarmin & Javier Miranda, 2014. "The Role of Entrepreneurship in US Job Creation and Economic Dynamism," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 3-24, Summer.
    11. Kenneth R. Troske & Kimberly Bayard, 1999. "Examining the Employer-Size Wage Premium in the Manufacturing, Retail Trade, and Service Industries Using Employer-Employee Matched Data," American Economic Review, American Economic Association, vol. 89(2), pages 99-103, May.
    12. Delmar, Frederic & Shane, Scott, 2004. "Legitimating first: organizing activities and the survival of new ventures," Journal of Business Venturing, Elsevier, vol. 19(3), pages 385-410, May.
    13. Per Davidsson & Paul D. Reynolds, 2009. "PSED II and the Comprehensive Australian Study of Entrepreneurial Emergence [CAUSEE]," International Studies in Entrepreneurship, in: Richard T. Curtin & Paul D. Reynolds (ed.), New Firm Creation in the United States, chapter 0, pages 263-278, Springer.
    14. Jara, Magali & Cliquet, Gérard, 2012. "Retail brand equity: Conceptualization and measurement," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 140-149.
    15. Ali Hortaçsu & Chad Syverson, 2015. "The Ongoing Evolution of US Retail: A Format Tug-of-War," Journal of Economic Perspectives, American Economic Association, vol. 29(4), pages 89-112, Fall.
    16. van der Wijst, Nico & Thurik, Roy, 1993. "Determinants of Small Firm Debt Ratios: An Analysis of Retail Panel Data," Small Business Economics, Springer, vol. 5(1), pages 55-65, March.
    17. John Pal & Dominic Medway & John Byrom, 2006. "Analysing retail failure from an historical perspective: A case study of A. Goldberg & Sons plc," The Service Industries Journal, Taylor & Francis Journals, vol. 26(5), pages 513-535, July.
    18. McGurr, Paul T. & DeVaney, Sharon A., 1998. "Predicting Business Failure of Retail Firms: An Analysis Using Mixed Industry Models," Journal of Business Research, Elsevier, vol. 43(3), pages 169-176, November.
    19. Alex Coad & Julian S. Frankish & Richard G. Roberts & David J. Storey, 2016. "Predicting new venture survival and growth: Does the fog lift?," Small Business Economics, Springer, vol. 47(1), pages 217-241, June.
    20. Eli Gimmon & Shimon Spiro, 2013. "Social and Commercial Ventures: A Comparative Analysis of Sustainability," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 4(2), pages 182-197, July.
    21. Brady, Michael K. & Cronin, J. Joseph & Fox, Gavin L. & Roehm, Michelle L., 2008. "Strategies to offset performance failures: The role of brand equity," Journal of Retailing, Elsevier, vol. 84(2), pages 151-164.
    22. Gérard P. Cachon & Christian Terwiesch & Yi Xu, 2005. "Retail Assortment Planning in the Presence of Consumer Search," Manufacturing & Service Operations Management, INFORMS, vol. 7(4), pages 330-346, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng, Cong & Xiang, Kexin, 2023. "Structural power of female executives and retailer profitability: A contingent resource-based perspective," Journal of Business Research, Elsevier, vol. 168(C).
    2. Fay, Scott & Feng, Cong & Patel, Pankaj C., 2022. "Staying small, staying strong? Retail store underexpansion and retailer profitability," Journal of Business Research, Elsevier, vol. 144(C), pages 663-678.
    3. Sofia Fonseca & Maria João Guedes & Vítor Conceição Gonçalves, 2022. "Profitability and size of newly established firms," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 957-974, June.
    4. Feng, Cong & Fay, Scott, 2020. "Store Closings and Retailer Profitability: A Contingency Perspective," Journal of Retailing, Elsevier, vol. 96(3), pages 411-433.
    5. Weiyu Wang & Maria João Guedes, 2025. "Timing and experience in global markets: unraveling the impact of servitization on new manufacturing venture survival," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-27, December.
    6. Feng, Cong & Fay, Scott, 2021. "Chief stores officer and retailer performance," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    7. Patel, Pankaj C. & João Guedes, Maria & Pagano, Michael S. & Olson, Gerard T., 2020. "Industry profitability matters: The value of sustainable growth rate and distance from bankruptcy as enablers of venture survival," Journal of Business Research, Elsevier, vol. 114(C), pages 80-92.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saerom (Ronnie) Lee & J. Daniel Kim, 2024. "When do startups scale? Large‐scale evidence from job postings," Strategic Management Journal, Wiley Blackwell, vol. 45(9), pages 1633-1669, September.
    2. Anselmsson, Johan & Burt, Steve & Tunca, Burak, 2017. "An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 194-203.
    3. Alex Coad, 2018. "Firm age: a survey," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 13-43, January.
    4. Garcia Martinez, Marian & Zouaghi, Ferdaous & Garcia Marco, Teresa & Robinson, Catherine, 2019. "What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis," Journal of Business Research, Elsevier, vol. 98(C), pages 441-449.
    5. Guido Cristini & Cristina Zerbini & Elisa Martini, 2021. "Store Brand Equity: An Explorative Study," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(11), pages 122-122, July.
    6. Willems, Kim, 2022. "Brand personality appeal in retailing: Comparing fashion- and grocery retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    7. Beatriz Moliner-Velázquez & María Fuentes-Blasco & Irene Gil-Saura, 2019. "Effects of value and innovation on brand equity in retailing," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 658-674, November.
    8. Siepel, Josh & Cowling, Marc & Coad, Alex, 2017. "Non-founder human capital and the long-run growth and survival of high-tech ventures," Technovation, Elsevier, vol. 59(C), pages 34-43.
    9. Qin, Fei & Wright, Mike & Gao, Jian, 2017. "Are ‘sea turtles’ slower? Returnee entrepreneurs, venture resources and speed of entrepreneurial entry," Journal of Business Venturing, Elsevier, vol. 32(6), pages 694-706.
    10. Dongling Cai & Li Jiang, 2020. "The Bright and Dark Sides of Customer Switching," Production and Operations Management, Production and Operations Management Society, vol. 29(6), pages 1381-1396, June.
    11. Patel, Pankaj C. & João Guedes, Maria & Pagano, Michael S. & Olson, Gerard T., 2020. "Industry profitability matters: The value of sustainable growth rate and distance from bankruptcy as enablers of venture survival," Journal of Business Research, Elsevier, vol. 114(C), pages 80-92.
    12. Kim, Woohyoung & Kim, Hyun & Hwang, Jinsoo, 2020. "Sustainable growth for the self-employed in the retail industry based on customer equity, customer satisfaction, and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    13. Rudkowski, Janice, 2024. "Measuring employee-consumer integrated retailer brand equity," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    14. Marcos Antonio González M & Orestis Terzidis & Phillip Lütz & Benedict Heblich, 2024. "Critical decisions at the early stage of start-ups: a systematic literature review," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-40, December.
    15. Lin, YiHsin & Ryan, Chris, 2016. "From mission statement to airline branding," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 150-160.
    16. Mohamed Ismail Mujahid Hilal, 2019. "A nexus between the elements of brand equity and its creation: evidence from the telecommunication industry of Sri Lanka," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 9(10), pages 254-264, October.
    17. Maican, Florin & Orth, Matilda, 2021. "Determinants of economies of scope in retail," International Journal of Industrial Organization, Elsevier, vol. 75(C).
    18. Nuria Recuero Virto & Joaquin Aldas Manzano & Francis Blasco López & Jesús García-Madariaga, 2024. "Exploring the Power of Brand Extension in Museums. Insights from the Louvre Abu Dhabi," SAGE Open, , vol. 14(3), pages 21582440241, September.
    19. Sarimehmet, Ayse Sarimehmet & Aydin, Samet, 2021. "Branding Of Private Label Products By Product Category: A Model Suggestion For Fmcg Market," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 12(1), pages 19-31.
    20. Swoboda, Bernhard & Weindel, Julia & Hälsig, Frank, 2016. "Predictors and effects of retail brand equity – A cross-sectoral analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 265-276.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jouret:v:93:y:2017:i:2:p:241-251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.