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The impact of culture on own-label brands performance

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thesis
posted on 2015-06-17, 11:12 authored by Tribikram Budhathoki
The performance of own-label brands varies enormously across countries, with high penetration in Western countries but limited success in Eastern countries. The common explanations for this state are related to market factors such as the development of big retailer chains or the power balance between retailers and manufacturers. However, the role of culture has been overlooked to explain this situation. This study aims to provide insights into the impact of culture on own-label brands performance. This thesis formulates and tests a conceptual framework linking Hofstede s (1980, 2001) five cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance & long-term orientation) to retail market development (size of the retail market) and own-label brands performance, controlling for three socio-economic variables: GDP per capita, Gini index and Government expenditure. Relevant literature is reviewed in order to develop hypotheses. The conceptual model is then tested upon a sample of 65 countries, utilising data collected via secondary sources and the application of structural equation modelling techniques. The results of this study indicate that three out of five Hofstede s cultural dimensions, power distance, individualism and uncertainty avoidance, have a significant impact on retail market development, which in turn, significantly influences own-label brands performance. Moreover, results show that individualism and long-term orientation have a significant direct impact on own-label brands performance. Past studies on this domain are restricted to one or two cultural dimensions and generally involve a limited number of countries. This research therefore pioneers in investigating the five national cultural dimensions across a high number of nations. The findings are important for retailers and may help them to adapt their own-label strategy according to the culture of the nation they are operating in.

Funding

Loughborough University

History

School

  • Business and Economics

Department

  • Business

Publisher

© Tribikram Budhathoki

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2014

Notes

A Doctoral Thesis. Submitted in partial fulfilment of the requirements for the award of Doctor of Philosophy of Loughborough University.

Language

  • en