Efficiency analysis of retail chain stores in Korea

Kyungwan Ko, Meehyang Chang, Eun Song Bae, Daecheol Kim

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

In today's low-growth business environment, efficiency management is becoming more important to improve corporate sustainability. In a chain store, the efficiency of individual stores must be well managed to improve the efficiency of the entire enterprise. To do this, it is important to measure the efficiency of individual stores and to find factors that affect efficiency. The main purpose of this study is to find out the factors affecting the efficiency of chain stores and to analyze the results to find out the implications that contribute to an improvement in efficiency. We measured the relative efficiency of individual stores using data envelopment analysis (DEA) and analyzed the factors that affect efficiency with the Tobit regression model. As a result, we found that the number of items per employee and a competitive environment influence the efficiency of stores. An excessive number of items may cause efficiency to be lowered. Therefore, it is necessary to manage the life cycle of the product, considering the trade-off between assortment and efficiency. Competition helps to improve efficiency to some extent, but too much competition can reduce efficiency.

Original languageEnglish
Article number1629
JournalSustainability (Switzerland)
Volume9
Issue number9
DOIs
StatePublished - 2017 Sep 13

Fingerprint

efficiency analysis
data envelopment analysis
trade-off
Korea
life cycle
sustainability
efficiency
product
analysis
assortment
Data envelopment analysis

Keywords

  • Chain stores
  • Data envelopment analysis (DEA)
  • Efficiency analysis
  • Tobit regression

Cite this

Ko, Kyungwan ; Chang, Meehyang ; Bae, Eun Song ; Kim, Daecheol. / Efficiency analysis of retail chain stores in Korea. In: Sustainability (Switzerland). 2017 ; Vol. 9, No. 9.
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Efficiency analysis of retail chain stores in Korea. / Ko, Kyungwan; Chang, Meehyang; Bae, Eun Song; Kim, Daecheol.

In: Sustainability (Switzerland), Vol. 9, No. 9, 1629, 13.09.2017.

Research output: Contribution to journalArticle

TY - JOUR

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AU - Ko, Kyungwan

AU - Chang, Meehyang

AU - Bae, Eun Song

AU - Kim, Daecheol

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Y1 - 2017/9/13

N2 - In today's low-growth business environment, efficiency management is becoming more important to improve corporate sustainability. In a chain store, the efficiency of individual stores must be well managed to improve the efficiency of the entire enterprise. To do this, it is important to measure the efficiency of individual stores and to find factors that affect efficiency. The main purpose of this study is to find out the factors affecting the efficiency of chain stores and to analyze the results to find out the implications that contribute to an improvement in efficiency. We measured the relative efficiency of individual stores using data envelopment analysis (DEA) and analyzed the factors that affect efficiency with the Tobit regression model. As a result, we found that the number of items per employee and a competitive environment influence the efficiency of stores. An excessive number of items may cause efficiency to be lowered. Therefore, it is necessary to manage the life cycle of the product, considering the trade-off between assortment and efficiency. Competition helps to improve efficiency to some extent, but too much competition can reduce efficiency.

AB - In today's low-growth business environment, efficiency management is becoming more important to improve corporate sustainability. In a chain store, the efficiency of individual stores must be well managed to improve the efficiency of the entire enterprise. To do this, it is important to measure the efficiency of individual stores and to find factors that affect efficiency. The main purpose of this study is to find out the factors affecting the efficiency of chain stores and to analyze the results to find out the implications that contribute to an improvement in efficiency. We measured the relative efficiency of individual stores using data envelopment analysis (DEA) and analyzed the factors that affect efficiency with the Tobit regression model. As a result, we found that the number of items per employee and a competitive environment influence the efficiency of stores. An excessive number of items may cause efficiency to be lowered. Therefore, it is necessary to manage the life cycle of the product, considering the trade-off between assortment and efficiency. Competition helps to improve efficiency to some extent, but too much competition can reduce efficiency.

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