Role of brand equity and competitive strategies in the relation between horizontal alliances and its benefits

Abstract

Purpose

Drawing on the resource-based view, this study aims to investigate the conditions under which small- and medium-sized retailers can improve competitive benefits through the lens of brand equity and strategies for competitive advantage in retail buying groups.

Design/methodology/approach

This study collected 241 samples from small- and medium-sized supermarket retailers who joined retail buying groups in Japan.

Findings

This study offers two key findings. First, the results indicate that a buying group’s brand equity partially mediates the relationship between member retailers’ strategic integration and their buying group benefits. Second, member retailers with a stronger differentiation orientation strengthen the positive impact of strategic integration on the buying group’s brand equity and buying group benefits. The moderating effects of low-cost orientation were not found to be significant.

Practical implications

To highlight the sustainable growth of small- and medium-sized retailers in retail buying groups, which are often ignored in the extant literature, this study offers practical guidance on the importance of a buying group’s brand equity. In addition, based on the findings, this paper postulates that member retailers pursuing differentiation orientation, rather than low-cost orientation, are more beneficial to retail buying groups in terms of relational outcomes and performance consequences.

Originality/value

By conceptualizing brand equity in retail buying groups, this study suggests a novel approach for retail management that investigates how a buying group’s brand equity is linked to strategic integration, strategies for competitive advantage and buying group benefits from the viewpoint of member retailers.

Citation

Kim, C. and Hu, B. (2022), "Role of brand equity and competitive strategies in the relation between horizontal alliances and its benefits", Journal of Business & Industrial Marketing, Vol. 37 No. 9, pp. 1903-1914. https://doi.org/10.1108/JBIM-02-2021-0115