The Nexus Between Human Resource Capabilities and a Competitive Advantage in Retail Personal Service

This paper reports on the empirical testing of two key propositions using a study of apparel retailers in Eastern Australia. The first proposition states that small retailers have an advantage in personal service compared lo large retailers. The second proposition states that human resource capabilities contribute to a competitive advantage in personal service. The key contributions of the research include the identification of the incidence of a competitive advantage in personal service among retailers; the testing of theoretical propositions, and the recognition of the implications of the research for the more successful management of retail businesses. The final contribution is the exploration of managerial implications. Employee training emerges as the key to improved performance in personal service. The findings are significant for the survival of SME retailing as we know it and there is scope to test the status of the propositions in other industries and in other countries.