Purpose The purpose of this paper is to develop and empirically test a model investigating the relationship among inter-departmental communication, buyer innovativeness, and retail competitiveness. The authors also explore whether a retail strategy of supply base diversification for managing suppliers moderates the association between innovativeness and competitiveness. Design/methodology/approach Hypotheses were tested using a structural equation model and survey data drawn from general merchandise managers of 149 supermarket retailers in Japan. Findings The results indicate that inter-departmental communication between merchandising and store divisions drives innovativeness among retail buyers and ultimately strengthens firm competitiveness. Moreover, when buyer innovativeness is evident and less actively the retail buyers utilize supply base diversification, the stronger is the retailer’s competitiveness. The study failed to find any direct impact of inter-departmental communication on retail competitiveness. Practical implications This study offers managerial insights into the roles that buyer innovativeness, inter-departmental communications, and supply base diversification play in developing effective competitive strategies. Originality/value This study makes two key contributions. First, it is novel in using inter-departmental communication to explain the antecedents of buyer innovativeness. Second, drawing on the power-dependence theory, the authors extend the well-established innovativeness-performance linkage by exploring the moderation effect of supply base diversification.

This study addresses issues arising in the management of retail buyers. We consider the impact on supplier relationship management and organizational performance when retailers manage buyers based on an outcome-based control. To confirm the trends indicated in our proposed research model, this study conducts a survey of merchandising division heads at Japanese retail companies. The results from structural equation modeling analysis reveal that outcome-based control, through the central, mediating role of relationship continuity, encourages cooperation with suppliers, and this cooperation yields greater organizational performance for retailers. The findings raise questions as to the significance of forming a clan-like system when managing results-oriented buyers on an outcome basis.

No abstract

Purpose This paper aims to examine empirically whether and under what organisational design conditions retailers can benefit from private label (PL) merchandising improvement. Design/methodology/approach The study tests hypotheses using a structural equation model and data obtained from general merchandise managers at 190 supermarket retailers in Japan. Findings The results reveal that both centralised merchandising authority and store cooperation between merchandising and store divisions motivate PL merchandising improvement, which strengthens PL competitiveness. In addition, outcome-based merchandiser control strengthens the positive relationship between store cooperation and PL merchandising improvement. However, regarding centralised merchandising authority, it is found that outcome-based control had no significant moderating effect. Research limitations/implications To generalise the findings, it may be desirable to reflect data from store divisions for at least two constructs of interdepartmental structure and coordination. Also, it will remain a challenge to produce objective financial outcomes, such as sales, profits or market share, of PL merchandise to empirically test PL contributions to a retail store or company. Practical implications It is important for retail managers to understand their merchandisers’ efforts and behaviours to continuously improve PL merchandising activities. It is strongly recommended that retail managers continue to find ways to motivate their merchandisers. Originality/value Drawing on the philosophy of continuous improvement, this study suggests a novel approach to retail merchandising management that investigates how organisational design can influence better PL merchandising. To highlight the growing role of retail merchandisers, often ignored in the PL literature, this study advances this knowledge about the organisational design–strategic behaviour linkage by empirically testing interactions between different aspects of retail organisation design.

Purpose – The purpose of this paper is to investigate retailers’ power-dependence management through the lens of supply chain diversification, and explore how it is linked to their logistic arrangements in managing suppliers and their retail performance. Design/methodology/approach – Hypotheses are tested using a structural equation modelling based on survey data from 186 merchandising division heads at Japanese retail companies. Findings – The results reveal that quick-response inventory replenishment is positively related to retailers’ use of power-dependence management. This management practice leads to enhanced retail competitiveness and, thus, higher sales growth in supply chain relationships. Originality/value – This study contributes to understanding how retailers’ logistic arrangements work by modelling power relations within supply chains, drawing on power-dependence theory. The authors propose an alternative view of logistics systems to that of the widely adopted transaction cost theory. The authors find that supplier investments in quick-response inventory management may not be a relationship-specific asset.