Title

Does small store location matter? A test of three classic theories of retail location

Date of this Version

1-1-2008

Document Type

Journal Article

Publication Details

Interim status: Citation only.

Litz, R.A. & Rajaguru, G. (2008). Does small store location matter? A test of three classic theories of retail location. Journal of small business and entrepreneurship, 21(4), 477-492.

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2008 HERDC submission. FoR code: 1503

© Copyright Journal of Small Business and Entrepreneurship, 2008

Abstract

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.

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This document has been peer reviewed.