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

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

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.

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File URL: http://purl.umn.edu/27235
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Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

Volume (Year): 35 (2004)
Issue (Month): 02 (July)
Pages:

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Handle: RePEc:ags:jlofdr:27235
Contact details of provider: Web page: http://fdrs.ag.utk.edu/

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  1. Brynjolfsson, Erik. & Hitt, Lorin M., 1995. "Paradox lost? : firm-level evidence on the returns to information systems spending," Working papers 3786-95., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  2. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
  3. Robert P. King & Paul F. Phumpiu, 1996. "Reengineering the Food Supply Chain: The ECR Initiative in the Grocery Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1181-1186.
  4. Roger Betancourt & Margaret Malanoski, 1999. "An Estimable Model of Supermarket Behavior: Prices, Distribution Services and Some Effects of Competition," Empirica, Springer, vol. 26(1), pages 55-73, March.
  5. Harvey, A C, 1976. "Estimating Regression Models with Multiplicative Heteroscedasticity," Econometrica, Econometric Society, vol. 44(3), pages 461-65, May.
  6. repec:ner:tilbur:urn:nbn:nl:ui:12-373304 is not listed on IDEAS
  7. Martin Neil Baily & Robert M. Solow, 2001. "International Productivity Comparisons Built from the Firm Level," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 151-172, Summer.
  8. Martin Neil Baily & Eric Zitzewitz, 2001. "Service Sector Productivity Comparisons: Lessons for Measurement," NBER Chapters, in: New Developments in Productivity Analysis, pages 419-464 National Bureau of Economic Research, Inc.
  9. Jean Kinsey, 2000. "A Faster, Leaner, Supply Chain: New Uses of Information Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1123-1129.
  10. Farber, Henry S & Saks, Daniel H, 1980. "Why Workers Want Unions: The Role of Relative Wages and Job Characteristics," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 349-69, April.
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