Towards a fairer manager performance measure: a DEA application in the retail industry

Dany Vyt () and Gérard Cliquet ()
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Dany Vyt: 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: Retailers need to determine the performance of their individual stores and, beyond the stores, the managers in charge of running them. The aim of this paper is to develop performance standards that can be applied to fairly distribute rewards to managers regarding their performances by taking into account store neighbourhood characteristics. In order to propose a fairer measure of store performance, the authors introduce and explore the concepts of organisational justice and store efficiency. They use real data from a French supermarket chain and a geomarketing approach. The twostep Data Envelopment Analysis (DEA) model results are compared with a retailer's ranking. The retailer tends to favour points of sale having a more important sales area, with more employees and operating in a more densely populated area with a higher buying power. The ranking stemming from the DEA model links store performance to other geo-demographic variables.

Keywords: DEA method; geomarketing; GIS; store manager’s performance (search for similar items in EconPapers)
Date: 2017-12-04
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Citations: View citations in EconPapers (2)

Published in International Review of Retail, Distribution and Consumer Research, 2017, 27 (5), pp.450-467. ⟨10.1080/09593969.2017.1383293⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01806424

DOI: 10.1080/09593969.2017.1383293

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