Towards a fairer manager performance measure: a DEA application in the retail industry*. Issue 5 (20th October 2017)

• Record Type: Journal Article
• Authors: Vyt, Dany; Cliquet, Gerard
• Is Part Of: International review of retail, distribution and consumer research. Volume 27:Issue 5(2017)
• Page Start: 450
• Page End: 467
• Publication Date: 2017-10-20
• Subjects: DEA method -- geomarketing -- GIS -- store manager's performance; Retail trade -- Periodicals; Physical distribution of goods -- Periodicals; Consumers -- Research -- Periodicals; 381.1
• DOI: 10.1080/09593969.2017.1383293
• Languages: English
• ISSNs: 0959-3969

Abstract

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 organizational justice and store efficiency. They use real data from a French supermarket chain and a geomarketing approach. The two-step 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.