Retailing Evolution and Revolution in a Privatizing Economy: Small Business Managers' Values and Retail Strategies in Romania

Abstract

SUMMARY The paper discusses the changes in the retailing environment of a privatizing economy of Eastern Europe. As Eastern European independent retailers face increasing competition from each other and from large foreign retail chains entering their markets, their future competitive viability depends on the ability to identify strategic niches. One strategy for survival is to become embedded in the local communities. A survey of 191 small retail business managers in Romania explores the relationships between managers' collectivist and individualistic values, market orientation, retail-mix strategy and performance. The results of this study indicate that managers' collectivist values appear to have a positive impact on their ability to assume a customer orientation, which significantly impacts their community oriented strategy (especially through service and merchandising), customer retention and community leadership performance. In contrast, the consequences of managers' individualistic values are unclea...