Efficiency Analysis of Retail Chain Stores in Korea

Kyungwan Ko, Meehyang Chang, Eun-Song Bae and Daecheol Kim
Additional contact information
Kyungwan Ko: School of Business, Hanyang University, Seoul 04763, Korea
Meehyang Chang: College of Hospitality and Tourism, Sejong University, Seoul 05006, Korea
Eun-Song Bae: Graduate School of Hanyang University, Seoul 04763, Korea
Daecheol Kim: School of Business, Hanyang University, Seoul 04763, Korea

Sustainability, 2017, vol. 9, issue 9, 1-14

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.

Keywords: efficiency analysis; chain stores; data envelopment analysis (DEA); Tobit regression (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://www.mdpi.com/2071-1050/9/9/1629/pdf (application/pdf)
https://www.mdpi.com/2071-1050/9/9/1629/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:9:y:2017:i:9:p:1629-:d:111824

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().