Value Innovation in the Malaysian Retail Industry

The retail industry is a key driver of domestic consumption in Malaysia and an important contributor to the nation’s income. Today’s challenging economic and competitive environment entails that retailers need to invest in innovation that will bring growth and added value. This study combines three...

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Main Author: Fong, Hui Sain
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26970/
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author Fong, Hui Sain
author_facet Fong, Hui Sain
author_sort Fong, Hui Sain
building Nottingham Research Data Repository
collection Online Access
description The retail industry is a key driver of domestic consumption in Malaysia and an important contributor to the nation’s income. Today’s challenging economic and competitive environment entails that retailers need to invest in innovation that will bring growth and added value. This study combines three key concepts: the resource-based view, institutional theory and McNair’s Wheel of Retailing, to explore how innovation enhances the value-creation process in the industry, what institutional forces influence the practice of innovation itself, whether there are any emerging patterns within the process of retailing innovation over the years, and whether these were incremental innovations or real game-changing value innovations that resulted in higher performance, and thus superior competitive advantage. The research reveals that though the awareness of the importance of innovation was high, retailing innovation in practice is thought to be lacking in Malaysia. Certain perceived recurring cycles of innovation in the Malaysian retail industry are identified in the findings, where innovation is triggered by various catalysts at different stages of the retailing organisation’s development. The initial market entry stage is where innovation is probably at its’ highest. Subsequently, institutionalization often sets in during the trading-up phase, leading to only incremental innovation, and thus temporary competitive advantage. The retailer has to continuously innovate, and when it reaches a vulnerable phase, radical innovation of a disruptive nature is required for renewed long-term growth and profits. The study shows that continuous value innovation is necessary for the survival of a retailer at every stage of its lifecycle. Retailers must be conscious of the influence of institutionalization and what constitutes real value innovation to sustain their competitive advantage.
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format Dissertation (University of Nottingham only)
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spelling nottingham-269702017-10-19T13:47:23Z https://eprints.nottingham.ac.uk/26970/ Value Innovation in the Malaysian Retail Industry Fong, Hui Sain The retail industry is a key driver of domestic consumption in Malaysia and an important contributor to the nation’s income. Today’s challenging economic and competitive environment entails that retailers need to invest in innovation that will bring growth and added value. This study combines three key concepts: the resource-based view, institutional theory and McNair’s Wheel of Retailing, to explore how innovation enhances the value-creation process in the industry, what institutional forces influence the practice of innovation itself, whether there are any emerging patterns within the process of retailing innovation over the years, and whether these were incremental innovations or real game-changing value innovations that resulted in higher performance, and thus superior competitive advantage. The research reveals that though the awareness of the importance of innovation was high, retailing innovation in practice is thought to be lacking in Malaysia. Certain perceived recurring cycles of innovation in the Malaysian retail industry are identified in the findings, where innovation is triggered by various catalysts at different stages of the retailing organisation’s development. The initial market entry stage is where innovation is probably at its’ highest. Subsequently, institutionalization often sets in during the trading-up phase, leading to only incremental innovation, and thus temporary competitive advantage. The retailer has to continuously innovate, and when it reaches a vulnerable phase, radical innovation of a disruptive nature is required for renewed long-term growth and profits. The study shows that continuous value innovation is necessary for the survival of a retailer at every stage of its lifecycle. Retailers must be conscious of the influence of institutionalization and what constitutes real value innovation to sustain their competitive advantage. 2013 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26970/1/FongHuiSain.pdf Fong, Hui Sain (2013) Value Innovation in the Malaysian Retail Industry. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Fong, Hui Sain
Value Innovation in the Malaysian Retail Industry
title Value Innovation in the Malaysian Retail Industry
title_full Value Innovation in the Malaysian Retail Industry
title_fullStr Value Innovation in the Malaysian Retail Industry
title_full_unstemmed Value Innovation in the Malaysian Retail Industry
title_short Value Innovation in the Malaysian Retail Industry
title_sort value innovation in the malaysian retail industry
url https://eprints.nottingham.ac.uk/26970/