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Impact of the industry on franchise chain efficiency:a meta-DEA and context-dependent DEA approach

Isabelle Piot-Lepetit (), Rozenn Perrigot () and Gérard Cliquet ()
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Isabelle Piot-Lepetit: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Rozenn Perrigot: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Gérard Cliquet: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: A meta-DEA (Data Envelopment Analysis) approach is used to analyse the impact of the industry in which the franchisor operates its business on its chain efficiency by comparing chain efficiency between and across industries (retail versus services). To provide realistic short-term and long-term objectives to inefficient chains, a level-bylevel benchmarking path is developed with the context-dependent DEA approach. Furthermore, the joint implementation of both approaches enables an identification of chains for which the industry influences their efficiency, an evaluation of the efficiency share that results from industry-specific factors rather than factors common to the franchise sector as a whole, and the characterization of an implementable and achievable benchmarking defining level-by-level improvements of chain efficiency and taking into account chain characteristics. Such an analysis can help franchisors to define their future strategic and managerial orientations.

Keywords: Data Envelopment Analysis; franchising; meta-DEA analysis; context-dependent DEA analysis; benchmarking (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

Published in Journal of the Operational Research Society, 2014, 65 (11), pp.1692-1699. ⟨10.1057/jors.2013.140⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01075639

DOI: 10.1057/jors.2013.140

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