Performance comparison of retailing stores using a Malmquist-type index

This study develops a framework that combines different management science methods to provide insights concerning the performance of retailing stores. First, the framework enables to specify appropriate targets for stores of a retail network using data envelopment analysis. This involves comparing stores within homogenous groups, that is, supermarkets and hypermarkets. Second, the framework compares the overall performance of these two groups. This requires the combined use of a Malmquist-type index and statistical tests. This index is decomposed into sub-indices for comparing the differences between groups in terms of the efficiency spread in each group of stores and the productivity differences between the best-practice frontiers spanned by the benchmark stores from each group. The hypothesis tests are used to verify if the differences between groups captured by the sub-indices are statistically significant

Comparison of two alternative store formats using a Malmquist-type index

This paper explores the differences in performance between two groups of retailing stores that operate with different formats. The study uses a Malmquist-type index to distinguish internal inefficiencies from those associated with the group (or format) characteristics. A fundamental characteristic of the new index is to compare groups in a static setting. The study described in this paper combines the use of the Malmquist index with statistical tests. The Malmquist-type index is decomposed into sub-indexes for comparing the efficiency spread between groups and the productivity differences between the best-practice frontiers of the groups. The hypothesis tests are used to verify if the differences between groups captured by the Malmquist-type index and its components are statistically significant. There are several methods based on DEA for comparing the performance of two groups, such as the program efficiency method and the comparison of efficiency distributions using statistical hypothesis tests. The method used in this paper is compared with the existing approaches to highlight its strengths and weaknesses. The applicability of the method is illustrated with a case study that compares the performance of heavy bazaar stores (that sell electrical appliances and consumer electronics) with different formats (megastores versus superstores). The study showed that the overall performance of megastores is better due to the effect of a more productive frontier. However, the efficiency spread is larger in megastores than in superstores meaning that there is scope for efficiency improvements

Assessing the brand effect on the efficiency of retailing stores

This paper explores the differences in performance between two groups of grocery stores that operate with different brands. The study develops a Malmquist-type index to distinguish internal inefficiencies from those associated with the group (or brand) characteristics. A fundamental characteristic of the new index is to compare groups in a static setting. The study described in this paper combines the use of a Malmquist-type index with statistical testes. The Malmquist-type index is decomposed into sub-indexes for comparing the efficiency spread between groups and the productivity differences between the best-practice frontiers of the groups. The hypothesis tests are used to verify if the differences between groups captured by the Malmquist-type index and its components are statistically significant. There are several methods based on DEA for comparing the performance of two groups, such as the program efficiency method, the comparison of efficiency distributions using statistical hypothesis tests, and methods based on the Malmquist index. The strengths and weaknesses of these methods are explored using data sets that represent different scenarios regarding the relative position of the frontiers and the efficiency spread within the groups. The new method used in this paper is compared with the existing approaches described in the DEA literature to highlight its potential for performance assessments. The applicability of the method is illustrated with a case study that compares the performance of sections from stores with different brands (supermarkets versus hypermarkets). Only large supermarkets are compared with hypermarkets, such that the comparisons are only made between stores with similar scale size. The stores are organised in five different sections: grocery, perishables, light bazaar, heavy bazaar and textiles. The objective of the analysis is to determine if there is evidence that the sections of stores in hypermarkets perform better than the sections from stores in supermarkets. The study showed that there is evidence to conclude that the frontier of the sections in hypermarkets is more productive that the frontier of the sections in supermarkets. This conclusion is valid for the five sections analysed. However, the efficiency spread among sections within the same group did not differ between supermarkets and hypermarkets for all sections except for the heavy bazaar section. If the best practices of the heavy bazaar section are followed by the other sections in the same group, the scope for efficiency improvements is larger in hypermarkets than in supermarkets. In conclusion, we recommend changing the brand of large supermarket to the brand of hypermarkets, whenever this is compatible with the organisation requirements to label a store as an hypermarket. Hypermarkets seem to be more appealing to customers and to allow the attainment of higher productivity levels

Mjerenje uspješnosti tzv. "uradi sam" prodajnih lanaca u Rumunjskoj tijekom ekonomske krize

The purpose of this study is to measure Romanian do-it-yourself retailers’ efficiency during the period of 2007-2010. The sample encompassed all do-it-yourself retail chains in Romania present in the market during the given period, that is 10 chains in all. For the purpose of the analysis, the Data Envelopment Analysis (DEA) method was used. The DEA model includes three variables, namely, two inputs (fixed assets and the average number of employees) and one output (turnover). The results of the DEA analysis show a high level of efficiency in the Romanian do-it-yourself market during the period of the economic crisis. The mean score of technical efficiency varied between 0.829 and 0.904. According to the results, the domestic do-it-yourself retailer Dedeman outperformed the international competition during the analyzed period. Dedeman was also one of the best performers in the market in 2010. The well-performing companies\u27 market penetration and development strategies are discussed briefly. The study seems to have been the first to apply performance measurement by means of the DEA in the Romanian do-it-yourself market.Predmet rada je mjerenje uspješnosti tzv. „uradi sam” prodavaonica u Rumunjskoj u razdoblju od 2007. do 2010. godine. Uzorak obuhvaća svih 10 maloprodajnih lanaca tzv. „uradi sam” prodavaonica prisutnih na rumunjskom tržištu u navedenom razdoblju. Za potrebe istraživanja korištena je metoda Data Envelopment Analysis (DEA). DEA model uključuje tri varijable, odnosno dva inputa (dugotrajnu imovinu i prosječan broj zaposlenika) i jedan output (prihod). Rezultati DEA analize pokazuju visoku razinu učinkovitosti ovih prodavaonica na rumunjskom tržištu za vrijeme ekonomske krize. Srednja vrijednost tehničke učinkovitosti kreće se od 0,829 do 0,904. Prema rezultatima istraživanja, domaći tzv. “uradi sam” maloprodajni lanac Dedeman nadmašuje inozemnu konkurenciju u analiziranom vremenskom razdoblju. To je ujedno bio jedan od najuspješnijih lanaca tzv. „uradi sam“ prodavaonica na tržištu u 2010. godini. U radu su ukratko prikazane strategije ulaska na tržište i razvoja učinkovitih poduzeća. Prema saznanjima autora, u radu je prvi puta primijenjena DEA metoda u mjerenju uspješnosti na tržištu tzv. „uradi sam“ prodavaonica u Rumunjskoj

Comparing university performance by legal status: a Malmquist-type index approach for the case of the Spanish higher education system

This is an Accepted Manuscript of an article published by Taylor & Francis in Tertiary Education and Management on 2017, available online: http://www.tandfonline.com/10.1080/13583883.2017.1296966New public management and increasing levels of competition driven by global rankings are bringing the managerial practices of public and private higher education institutions closer together. However, these two types of institutions still maintain different objectives and traditions and enjoy different degrees of autonomy that are reflected in their internal organisational structures. We study the relative efficiency and productivity performance of private and public universities in Spain through two adaptations of the Malmquist Index. Results show that, in 2009/2010, the greater flexibility of private universities meant a better adjustment between inputs and outputs in the private sector. However, in 2013/2014, public universities had caught up with private universities. Because of the economic crisis, the inputs of public universities have decreased, but this decrease had not fully impacted their results in 2013/201

A note on measuring group performance over time with pseudo-panels

Aparicio et al. (2017) recently extended the Camanho and Dyson (2006) Malmquist-type index (CDMI) for determining group performance in cross-sectional studies to panel or pseudo-panel databases. In that paper, it was shown that the pseudo-panel Malmquist index (PPMI) can be easily interpreted as the ratio of aggregated productivity changes in two groups of decision making units over time if and only if a new -difficult to interpret- term, the so called ‘divergence component’ (DC), is equal to one. The aim of this paper is twofold. First, based upon considering a baseline group technology we define a new base-group base-period PPMI where the DC always vanished. Second, when more than two groups are analyzed we show that under this framework the new base-group base-period PPMI, the new base-group CDMI and the components of both indexes satisfy the circular relation. As a consequence, the complicated ‘adjusted index’ defined in Camanho and Dyson (2006) for measuring the technology gap to satisfy the circular relation also vanishes. Both results will make it easier for practitioners applying the two indexes in different economic sectors regardless of how many groups are being compared

Performance comparison of wind energy conversion system technologies

This paper intends to give some insights on the performance comparison of two main conversion system technologies from a set of wind farms from two major promoters in the Portuguese wind energy sector. Conversion system technologies under analysis are based on the generator type, synchronous and asynchronous, which are the basis of the dominant technological trends in actual market. The performance assessment is accomplished using Data Envelopment Analysis (DEA) methodology, by computing the Malmquist index for group's comparison. From the obtained results, it is possible to conclude that farms with conversion systems based on synchronous generators have a better performance than the ones using conversion systems based on asynchronous generators. These conclusions may support the decision makers in repowering and overpowering processes.info:eu-repo/semantics/publishedVersio

TECHNICAL EFFICIENCY IN THE RETAIL FOOD INDUSTRY: THE INFLUENCE OF INVENTORY INVESTMENT, WAGE LEVELS, AND AGE OF THE FIRM

The objective of this paper is to estimate technical efficiency in retailing; and the influence of inventory investment, wage levels, and firm age on this efficiency. We use the output supermarket chains¿ sales volume, calculated isolating the retailer price effect on its sales revenue. This output allows us to estimate a strictly technical concept of efficiency. The methodology is based on the estimation of a stochastic parametric function. The empirical analyses applied to panel data on a sample of 42 supermarket chains between 2000 and 2002 show that inventory investment and wage level have an impact on technical efficiency. In comparison, the effect of these factors on efficiency calculated through a monetary output (sales revenue) shows some differences that could be due to aspects related to product prices. El objetivo de este trabajo se centra en la estimación de la eficiencia técnica en distribución comercial minorista, así como en analizar la influencia que la inversión en existencias, el nivel de salarios y la edad de la empresa tienen sobre dicha eficiencia. A tal efecto, se utiliza un output que pretende aislar el efecto de los precios de cada cadena de supermercados analizada, lo que permite estimar un concepto de eficiencia estrictamente técnico. La metodología se basa en la estimación de una frontera paramétrica de naturaleza estocástica. Los resultados de la aplicación empírica sobre una muestra de 42 cadenas de supermercados que operan en España entre 2000 y 2002 muestran que la inversión en existencias y el nivel de salarios ejercen una influencia positiva sobre la eficiencia. Por comparación, el efecto de estos factores sobre la eficiencia económica muestra algunas diferencias que podrían ser atribuidas al efecto de los precios aplicados por los distribuidores.Eficiencia, distribución comercial minorista, supermercados efficiency, retailing, supermarkets.

Performance comparison between retailing stores using a Malmquist-type index

This study develops a framework that combines different methods to provide insights regarding the performance of retailing stores. Firstly, the framework enables to specify appropriate targets for stores using DEA. This involves comparing stores within homogeneous groups. Secondly, the framework compares the overall performance of these groups. This requires the combined use of Malmquist type index and statistical tests. This index is decomposed into components for comparing the efficiency spread between groups and the productivity differences between the best-practice frontiers of the groups

Hyper Market Industry in Dubai – An Evaluation Using AHP Technique

Among all retail formats hypermarket is growing very fast in UAE that is at the rate of 150 percent.The major players in this sector are Carrefour, Spinney’s, United, Choithram and Lulu.The focus of the problem is selecting a best hypermarket among the existing operators of Dubai andfor which we used seven major criteria for evaluating the hypermarkets such as product availabilityand variety, market coverage, channel density, customer density, nationality served, facilities andservices and customer spending pattern. We used Analytic hierarchy process (AHP), developed byThomas saaty (1980) to provide a simple but theoretically sound multiple criteria methodology forevaluating the alternatives