The impact of competition and cooperation on the performance of a retail agglomeration and its stores


The highlights of the paper are:

  1. Competition and co-operation between stores increase agglomeration performance.
  2. There is a positive spill-over effect between agglomeration and store performance.
  3. Co-operation increases store performance indirectly via agglomeration performance.
  4. The spill-over effect nullifies competition’s negative impact on store performance.
  5. Co-opetition capabilities of stores enhance competitiveness of an agglomeration.  

Project outputs

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.