DESMONTANDO LA ESCALERA

Three well-known theories are recognized as the primary retail evolution theories:

1- Environmental Theory

It states that retail environment is a key stimulus to retail change. To survive or continue in operation, retail institutions need to progress by adapting to changes in the retail environment (e.g., changes of consumers, economy, technology, geography, competitors) or be forced out of business (Kim and Kincade, 2006). For this reason, it is important for retailers to be aware of and adjust to the changing environments. I am concerned with the use of the new technological tool, the social media, along with the cultural change presented by the change in the consumers shopping habits and modern life style affecting the retail environment performance to be approaching their customer to‎where‎they‎live‎―online‖.

132

2- Cyclical Theory

Where change follows a pattern and phases can have definite identifiable attributes associated with them. There are three primary components associated with the theory, the wheel of retailing proposed by McNair (1958), retail life cycle and retail accordion proposed by Hollander (1966).

One purpose of this research is to examine the more recent phenomenon of SMM adoption by the retailers through the lens of the Wheel of Retailing (WOR) and to determine whether WOR provides a theoretical basis for understanding the evolution of e-tailing.

As when it comes to the retail life-cycle, it starts from an independent retailer to a local medium sized retailer to hypermarkets, selling food, non-food items (general merchandise) and private brands, all of which available for the customer in one single trip and then specialty stores as Virgin, Compume, Tradeline, Appliance, and Radioshack.

The wheel of retailing proposed by McNair (1958) will be used in terms of the retail life cycle and the development of the retailing organization. The reason behind the use of this is that I refer to the change in the structure of the retailing organization by time due to the existence of new technology.

3- Conflict Theory

it states that an existing retail institution (i.e. thesis) is challenged by its competitor (i.e. the antithesis). As time passes, the retail institution and the competitor blend together, upgrade their attributes, and finally create a new retail institution that becomes a traditional one in the next evolution (i.e. synthesis) (Gist, 1968; Kim and Kincade, 2006).

133

3.7.1.3 Resource-Based View

Researchers in the field of strategic management have understood a long time ago that competitive advantage depends upon the match between unique internal (organizational) capabilities and changing external (environmental) circumstances (Andrews, 1971)

The resource-based view of the firm is a concept of competitive advantage that as shown in figure 3-8,‎ stresses‎ the‎ link‎ between‎ a‎ firm‘s‎ internal‎ resources,‎ strategy,

behavior and performance (Wright, Mcmahan & Mcwilliams, 1994). According to the RBV,‎ retailer‘s‎ heterogeneity‎ would‎ indicate‎ that‎ social‎media‎ is‎ cheaper‎ and/or‎ more‎

attractive to some retailers than others. Some retailers appear to retain resources that give them comparative advantage in developing new processes or products (Lockett and Thompson, 2001).Regardless of having a better marketing tool than that are currently adopted; it is difficult for retailers to adopt social media if it does not have the mix of assets or capabilities required for that (Wang et. al., 2007). Therefore, there is potentially‎an‎important‎relationship‎between‎a‎retailer‘s‎resources‎and‎capabilities‎and‎

its propensity to adopt social media. Such resources would refer to the hardware and the software needed and the budget allocated for this. In addition, capabilities

Figure 3-8 The relationship between traditional “strengths-weaknesses- opportunities-threats” analyses, the resource based model, and models of industry attractiveness

134 concerned with the availability of the human factor in terms of the skills needed and attitudes as a crucial resource to the adoption of SMM.

I would consider social media as a resource for marketing trying to measure the degree of compatibility of the retailing organization in terms of the technical and human resources needed to adopt social media.

3.7.1.4 Organizational Theories

The internal organization of the retailer is composed of social units of people that are structured and managed to meet a need, or to pursue collective goals. One of the objectives of the research is to assess how human factors have impact in adopting SMM in electronics and home appliances retailers in Egypt by identifying the role of employees and the management team of the retailer. Thus a look at the organizational theories would form a theoretical underpinning for this research. One of the organizational theories is Bureaucratic theory. The scholar most closely connected with Bureaucratic theory is Max Weber. An organization managed under Weber's concept of bureaucracy is described by the presence of impersonal positions that are won and not inherited, rule- controlled decision-making, professionalism, chain of command, defined responsibility, and bounded authority (Jain, 2004). This fits in investigating the organizational structure of the retailing organization in terms of the degree of communication and the decision making process that affect the adoption of social media as to whether employees at all levels are given the opportunity to share in the critical decision-making process necessary for the change and more frequently communicate on different levels with employees from other departments and along with their managers (Kim, 2011). In Modern organizational theories, Niels Andersen, the

135 researcher most associated with research about polyphonic organizations, believes that modern organizations have exploded beyond their original organizational boundaries. In polyphonic organizations, the society is divided into a number of countless communication systems (social systems) with their own values where meaning is created within different social systems (Anderson & Thygesen, 2012). Beside, a number of sociologists and psychologists made major contributions to the study of the neoclassical perspective, which is also known as the human relations school of thought. According to the Hawthorne studies, a human/social element operated in the workplace and productivity increases based on an outgrowth of group dynamics as of managerial demands and physical factors. Thus, an effective management understands the way people interacted and behaved within the group and attempts to improve the interpersonal skills through motivations, leading, communication and counseling (The Wisest, 2011).

Having presented the theoretical underpinnings of the research, the next section will present the analysis for the qualitative research phase, thus help in the development of the proposed research model.