Executive decision-making in fashion retail: a phenomenological exploration of resources and strategies

Abstract

PurposeDecision-makers must be well-informed to successfully impact the future of the business. The purpose of this study was to explore experiences of US fashion retail executives when making business decisions to understand what resources and strategies are utilized within the decision-making process. Additionally, the role of academic research within executive decision-making process was explored.Design/methodology/approachThis study utilized a phenomenological approach to understand the experiences of fashion retail executives when engaging in business decision-making. Fifteen US fashion retail executives participated in the study. Data were collected through in-depth individual interviews and thematically coded to gain a holistic perspective of the decision-making process within the fashion retail industry.FindingsAs the result of the data analysis and interpretation, three topical areas emerged:: “Incredible Amounts of Information,” “Industry Specific Academic Research” and “Have a Clear Road Map.” The findings suggested that while the facts gleaned from internal and external data are of great importance to fashion professionals, insights gathered from social media are equally influential within the decision-making process. The authors identified five major strategies utilized consistently by fashion retail executives regardless of the type of business they represented: collaboration, adaptability, speed, gut instinct and creativity.Research limitations/implicationsThe results are important to fashion retail companies for improving internal decision-making processes. The identified resources and strategies of the decision-making process can be incorporated into fashion program curricula and considered as learning outcomes when preparing future industry professionals.Originality/valueLimited studies have explored the decision-making process specific to the fashion retail environment, an uncertain and ever-changing industry. Further, the study shed light on the opportunity for academic research use in fashion retail decision-making and contributes to the literature by developing a fashion retail decision-making model.

Top-level decisions

“…The work of Testa and Karpova (2021) has identified five key strategies utilized by fashion retail executives:…”

“…As such, their decision-making processes are coming under increasing scrutiny. Testa and Karpova (2021) state that globally the fashion retail industry is worth USD$2.4 trillion, with a growth rate around 5.5% annually. Within the USA, it is the largest private-sector employer, providing one in four jobs.…”

The influence of employees on retailer success under conditions of strategic change

“…This study was inspired by qualitative research that examined strategic decision-making in the retail industry (Testa & Karpova, 2021). During interviews, the importance of employees' input during the decision-making process and employees' impact on business success was acknowledged by executive participants.…”

“…As a people-oriented industry, human resources are important to retail business processes and financial performance. The role of managers has been well-documented by industry experts and academics (Testa & Karpova, 2021). Scholars have examined the relationship between management practices and strategic change as they impact firm performance (e.g., Boeker, 1997;Gong, Law, et al, 2009).…”

“…It is their responsibility to pay attention to what consumers are reacting to, to understand what products and services consumers want more (or less) of, and to build a lasting business-to-consumer relationship through products, services, and working "in the weeds" of the business. Numerous researchers and retail leaders have acknolwedged that if employees with expert knowledge leave an organization, the loss can be determential to the performance of the department (Guthrie, 2001;Testa & Karpova, 2021), however, relatively little research has been conducted to examine how employees drive business success through performance, department impact, and interpersonal relationships.…”