Toward the development of measures of distinctive competencies among small independent retailers

To remain competitive in markets increasingly dominated by large discount chains, category killers, and other mass-merchandisers, small independent retailers need to develop distinctive competencies. Insight is provided into the multidimensional character of distinctive competencies by measuring the resources and capabilities possessed by a sample of 255 independent drugstores. Specifically, three competency constructs and one performance construct were simultaneously measured using a rigorous confirmatory factor analysis approach. Positive and strong correlations among the competency constructs provide evidence of a high degree of relatedness among competencies. Moreover, the positive relationship between the competency constructs and the performance construct helps identify which firm resources and capabilities may lead to a competitive advantage for the small retailer.