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Modeling Productivity In Supermarket Operations: Incorporating The Impacts Of Store Characteristics And Information Technologies

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  • King, Robert P.
  • Park, Timothy A.

Abstract

Data from the 2002 Supermarket Panel are used to estimate a supermarket production function with weekly gross margin as the output measure and store selling area and total labor hours as variable inputs. The model also includes productivity shifters describing format and service offerings, store ownership structure, unionization, and adoption of new information technologies and related business practices. The null hypothesis of constant returns to scale cannot be rejected. Increases in ownership-group size, warehouse and supercenter formats, unionization of the workforce, and adoption of vendor-managed inventory and a frequent-shopper program are all associated with significantly higher productivity.

Suggested Citation

  • King, Robert P. & Park, Timothy A., 2004. "Modeling Productivity In Supermarket Operations: Incorporating The Impacts Of Store Characteristics And Information Technologies," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(2), pages 1-14, July.
    • Handle: RePEc:ags:jlofdr:27235
    DOI: 10.22004/ag.econ.27235
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    References listed on IDEAS

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    Cited by:

    1. Dooley, Frank J. & Roucan, Maud & King, Robert P., 2004. "Ecr And The Importance Of Collaboration For Supermarkets," 2004 Annual meeting, August 1-4, Denver, CO 20368, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Paulrajan Rajkumar, 2012. "‘e’ Ability of the emerging organised Indian vegetable and grocery retailers," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(45), pages 123-142, September.
    3. Park, Timothy A., 2014. "Assessing Performance Impacts in Food Retail Distribution Systems: A Stochastic Frontier Model Correcting for Sample Selection," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(3), pages 373-389, December.
    4. Almohri, Haidar & Chinnam, Ratna Babu & Colosimo, Mark, 2019. "Data-driven analytics for benchmarking and optimizing the performance of automotive dealerships," International Journal of Production Economics, Elsevier, vol. 213(C), pages 69-80.
    5. Jaenicke, Edward C. & Chikasada, Mitsuko, 2006. "Separate Decision-Making for Supermarket Leaders and Followers: The Case of Whether or Not to Offer Irradiated Ground Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(3), pages 1-15, November.
    6. Hinson, Roger A. & Sinoha, Ramona & Reaves, Dixie Watts, 2006. "Industry Concentration Impacts on Business Strategies Used by Small Produce Wholesalers," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35291, Southern Agricultural Economics Association.

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