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An assessment of operational efficiency of retail firms in China

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  • Yu, Wantao
  • Ramanathan, Ramakrishnan

Abstract

This study aims to assess operational efficiency of retail firms in China. Economic efficiencies of 61 retailers working in China between 2000 and 2003 are examined in this study using three related methodologies: data envelopment analysis (DEA), Malmquist productivity index (MPI), and a bootstrapped Tobit regression model. DEA analysis shows that only seven retail firms are considered as efficient under CRS assumption in 2002, and four firms in 2003. MPI results indicate that about 37.7 percent (23 out of 61) of retail firms have registered progress in terms of MPI during 2000 and 2003. Results of the bootstrapped Tobit analysis show that retail characteristic plays a significant role influencing retail efficiency.

Suggested Citation

  • Yu, Wantao & Ramanathan, Ramakrishnan, 2009. "An assessment of operational efficiency of retail firms in China," Journal of Retailing and Consumer Services, Elsevier, vol. 16(2), pages 109-122.
    • Handle: RePEc:eee:joreco:v:16:y:2009:i:2:p:109-122
    DOI: 10.1016/j.jretconser.2008.11.009
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    4. Tuncay Ozcan & Fatih Tuysuz, 2016. "Modified Grey Relational Analysis Integrated with Grey Dematel Approach for the Performance Evaluation of Retail Stores," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 353-386, March.
    5. Ömer Faruk Görçün & Sarfaraz Hashemkhani Zolfani & Mustafa Çanakçıoğlu, 2022. "Analysis of efficiency and performance of global retail supply chains using integrated fuzzy SWARA and fuzzy EATWOS methods," Operations Management Research, Springer, vol. 15(3), pages 1445-1469, December.
    6. Chia-Nan Wang & Thanh-Tuan Dang & Ngoc-Ai-Thy Nguyen & Thi-Thu-Hong Le, 2020. "Supporting Better Decision-Making: A Combined Grey Model and Data Envelopment Analysis for Efficiency Evaluation in E-Commerce Marketplaces," Sustainability, MDPI, vol. 12(24), pages 1-24, December.
    7. Nomita Pachar & Jyoti Dhingra Darbari & Kannan Govindan & P. C. Jha, 2022. "Sustainable performance measurement of Indian retail chain using two-stage network DEA," Annals of Operations Research, Springer, vol. 315(2), pages 1477-1515, August.
    8. Dimitrios Giokas & Nicolaos Eriotis & Ioannis Dokas, 2015. "Efficiency and productivity of the food and beverage listed firms in the pre-recession and recessionary periods in Greece," Applied Economics, Taylor & Francis Journals, vol. 47(19), pages 1927-1941, April.
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    10. Dimitris Balios & Nikolaos Eriotis & Alexandra Fragoudaki & Dimitrios Giokas, 2015. "Economic efficiency of Greek retail SMEs in a period of high fluctuations in economic activity: a DEA approach," Applied Economics, Taylor & Francis Journals, vol. 47(33), pages 3577-3593, July.
    11. Kyungwan Ko & Meehyang Chang & Eun-Song Bae & Daecheol Kim, 2017. "Efficiency Analysis of Retail Chain Stores in Korea," Sustainability, MDPI, vol. 9(9), pages 1-14, September.

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