Achieving Competitive Advantage through Innovation: The Case of the Shanghai Supermarket

Abstract

Innovation in the service/retail sector has not been fully examined in the non-Western literature. This preliminary work presents a study that was conducted in Shanghai, China. Three sets of the literature are consulted: Porter’s Generic Strategies Model, Hunt’s Resource Advantage Theory (R-A), and previous studies in the service and retail sectors. Findings developed from six selected successful Chinese supermarket companies have identified three types of innovation adopted by Chinese retailers: Technology based, non-technology based, and resource based innovation. The study takes a qualitative approach by using the methods of documentation survey and in-depth interviews with a panel of ten supermarket experts. Some managerial implications are explicated, and the limitations of the study and directions for future studies are discussed.