Abstract
This paper examines the competition faced by small-scale general store and textile retailing in an island town in Malaysia. The study was carried out in Labuan Town in Labuan Island of East Malaysia. A qualitative research design was utilized, involving primarily interview data which were collected from 12 in-depth interviews with 6 sundry and general store retailers and 6 textile retailers. Content analysis was executed to analyse the narrative data. The findings reveal that large store retailing negatively impact the small traders on trade diversion, but also positively modernize their retail formats. Competition was intense for the town centre small-scale retailers who were facing multiple competitions from large retailers and bazaar retailers in the town centre, small-scale retailers from the rural areas, as well as place competition in the region. The study suggests the need for creative response of the local authority in place making and balanced development, coupled with the strategic response of small-scale retailers in cultivating local enterprise.
Highlights
Ecological complex is comprised of the interaction of population, organization, and technology in response to the environment (Duncan, 1964 in Grove & Burch, 1997)
This paper examines the competition faced by small-scale general store and textile retailing in an island town in Malaysia
Competition was intense for the town centre small-scale retailers who were facing multiple competitions from large retailers and bazaar retailers in the town centre, small-scale retailers from the rural areas, as well as place competition in the region
Summary
Ecological complex is comprised of the interaction of population, organization, and technology in response to the environment (Duncan, 1964 in Grove & Burch, 1997). Retail organizations consist of both large and small-scale retailers, and both respond to the environment at both local and wider regional level at different technological capabilities. Though competition is often viewed as healthy in sustaining optimum price, consumer services, efficiency and others, it has been found that in some instances the liberal market forces can create monopolistic conditions detrimental to the small operators, who are often the backbone of most industrial sectors. Since retailers are a product of adaptation to economic ecological factors, it will be of interest to see the contextual influence of island towns. An island is porous and accessible via waterways depending on its juxtaposition of trade routes and regional population flows
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