How do small firms possibly survive? A comparison study of marketing skills and logistics infrastructure of small and large wholesalers

Most wholesalers are small family-owned firms that frequently lack marketing skills and an infrastructure capable of setting into practice state-of-the-art marketing distribution systems. They are much more consumed with daily activities and credit and collection functions than they are with developing marketing skills and logistics networks. The purpose of this exploratory study is to identify the elements of marketing skills and logistics that are associated with the performance of small and large wholesalers, and to compare and contrast these variables. Data were collected from 4500 small and large wholesalers in Hyogo and Osaka prefectures in Japan. Multiple regression analysis of this study found that the factors of supplier’s financial assistance and buyer’s services to wholesalers explained the performance of small wholesalers, and the factors of supplier’s service to wholesalers and buyer’s service to wholesalers explained the performance of large wholesalers. Multivariate analysis of variance and multiple discriminant analysis revealed that large and small wholesalers differed with respect to supplier’s services to wholesalers, the supplier’s financial assistance, and the wholesaler’s intra logistics activities. Implications are discussed. 2012 Elsevier Ltd. All rights reserved. § The authors would like to thank Professor Kazuhiko Konishi of Otemon Gakuin University, Japan for data collection. * Corresponding author. E-mail address: [email protected] (Mohammed Y.A. Rawwas). G Model IBR-968; No. of Pages 12 Please cite this article in press as: Rawwas, M. Y. A., & Iyer, K. N. S. How do small firms possibly survive? A comparison study of marketing skills and logistics infrastructure of small and large wholesalers. International Business Review (2012), http://dx.doi.org/10.1016/j.ibusrev.2012.10.003