Abstract
Prior research suggests that alliances created between retailers provide numerous benefits for their members which result in higher retail performance. The paper investigates whether the size of a firm is a moderating variable and/or an alternative explanation in studying the effect of alliance membership on the retailer’s performance. An empirical study, based on a small-scale survey, was carried out among 99 small-and medium-sized retailers in Hungary. Not only the strength but also the form of the relationship between alliance membership, performance and firm size have been investigated. Findings of the research support that firm size changes the form of causal relationship between alliance and performance of a retailer. Size contributes substantially to the variation of retail performance and increases the impact of alliance membership on sales and profit growth of retailers.
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