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Does Small Store Location Matter? A Test Of Three Classic Theories Of Retail Location, Reginald Litz, Gulasekaran Rajaguru
Does Small Store Location Matter? A Test Of Three Classic Theories Of Retail Location, Reginald Litz, Gulasekaran Rajaguru
Gulasekaran Rajaguru
Just how important is physical location as a source of small-firm advantage? In this paper we consider this question by testing the predictive validity of three classic perspectives: central-place theory, spatial interaction theory and the principle of minimum differentiation. In addition, we identify and test two manager-grounded hypotheses focusing on locational continuity and transactional convenience. We test these hypotheses on a sample of small U.S. retail hardware stores and find significant support for central-place theory and both manager-grounded hypotheses.