Nothing gets a new retail venture off the ground and likely to stay there more surely than effective inventory management and well-traine...
The Role of Service Operations Management in New Retail Venture Survival
- Citation data:
Journal of Retailing, ISSN: 0022-4359, Vol: 93, Issue: 2, Page: 241-251
- Publication Year:
- Business, Management and Accounting
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While the factors related to the survival of established retail firms are well researched, current understanding of drivers of new retail venture survival is limited. We assess the influence of retail operations characteristics on the survival of new retail ventures. Based on data from 15,901 Portuguese retail ventures that were founded between 2006 and 2010 and followed until 2014, the new retail ventures with faster inventory turnover or higher staff expenses per employee had a higher likelihood of survival while higher investment in intangible assets had a negative but negligible effect on survival. The implications of these findings for entrepreneurs of new retailing ventures are discussed.