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Factorial Structure for Independent Shops and Cafes Success Factors: A UK Study

Douglas, JA, Douglas, A, Cano, M and Moyes, D Factorial Structure for Independent Shops and Cafes Success Factors: A UK Study. In: Excellence in Services International Conference (EISIC), 29 August 2019 - 30 August 2019, Thessaloniki, Greece. (Accepted)

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Purpose. The main purposes of this paper were to identify the business success factors as perceived by independent cafes/coffee shop owners who have been in business for longer than two years and to identify the latent constructs of the various success factors affecting them. Methodology. A literature review identified 24 (manifest) variables frequently reported as success factors for SMEs Then an empirical survey of 81 independent coffee shop owners was conducted using a questionnaire structured around these variables. The responses were analysed using SPSS v25 to determine descriptive statistics and to conduct Exploratory Factor Analysis in order to structure the factors. Findings. Results indicated that the top 3 critical success factors were: friendly staff, high standards of hygiene and good quality food. The Exploratory Factor Analysis resulted in a framework of 8 success factor constructs. The study therefore proposes 8 constructs for success, namely; “Support aspects”, “Staff aspects”, “Product/service aspects”, “Operations aspects”, “Business skills aspects”, “Financial aspects”, “Image aspects” and “Location aspects”. These constructs account for nearly 73% of the total variance in the data. Practical implications. The factorial structure of the success factors presents themes for classifying success factors and can provide guidance to owners of coffee shops and researchers in that field who need to recognise and control them. Further the conceptual model developed from the exploratory factor analysis in this study can be further tested in order to validate the framework of construct and manifest variables. Limitation. The main limitation is the small sample size. A larger sample may provide more valid and reliable results Originality/value. This is the first paper to investigate the success factors for independent coffee shops and cafes and to develop a model of their factorial structure.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Critical success factors; SMEs; Principle Componant Analysis
Subjects: H Social Sciences > HF Commerce > HF5001 Business
Divisions: Liverpool Business School
Date Deposited: 03 Sep 2019 09:28
Last Modified: 13 Apr 2022 15:17
URI: https://researchonline.ljmu.ac.uk/id/eprint/11259
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