K.J.K. Fernando
Competitive Advantage, Cost Reduction, Disintermediation, Social Impact, Value Improving.
Disintermediation is the removal of the third party that provides intermediate services between two parties in a supply chain. It means “cutting out the middleman” from the channel permitting direct links between consumers and sellers. In the past, the supermarkets purchased goods from retailers, but nowadays they directly purchase from the initial producer. The primary objective of this study is to explore how the disintermediation is related to obtain competitive advantage by supermarket chains in Sri Lanka. In order to examine this, we used three independent variables which are cost reduction, value improving and social impact while using disintermediation as the mediating variable and competitive advantage as the dependent variable. The most influencing factor that leads the supermarkets to adapt disintermediation practices is being identified and analyzed through this study. Even though there are many benefits obtained, by removing intermediary parties in the supply chain, yet there are several practical issues found when it comes to the implementation of this concept in the supermarket chain. Quantitative study has been done to achieve the research objectives. At first the researcher carried out a pilot test with the use of 20 supermarket managers in the Colombo District to make sure the questionnaire comprises of relevant questions. Out of 119 respondents, 105 respondents were taken into account after removing the outliers by running a thorough analysis. As the major finding, it was found that social impact has the highest influence towards disintermediation on competitive advantage. Further, disintermediation can be recommended for supermarkets as an efficient and effective practice to adapt with the modern market conditions which has many benefits towards the stakeholders in achieving competitive advantage in the industry.
Article Details
Unique Paper ID: 160859

Publication Volume & Issue: Volume 10, Issue 1

Page(s): 1627 - 1634
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