The impact of competition and cooperation on the performance of a retail agglomeration and its stores
The highlights of the paper are:
- Competition and co-operation between stores increase agglomeration performance.
- There is a positive spill-over effect between agglomeration and store performance.
- Co-operation increases store performance indirectly via agglomeration performance.
- The spill-over effect nullifies competition’s negative impact on store performance.
- Co-opetition capabilities of stores enhance competitiveness of an agglomeration.
For retailers operating stores in agglomerations, this research provided food for thought in terms of the following: the findings were a call for more cooperation in agglomerations and showed the positive impact of competition in agglomerations. We conclude that competition is a much-needed mindset in agglomerations.