Efficiency measurement of Indian retailers using Data Envelopment Analysis
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 3 June 2014
Abstract
Purpose
The purpose of this paper is to analyze the performance of Indian retailers in recent past and derive meaningful insight for practicing managers in this area.
Design/methodology/approach
This paper analyses the economic efficiencies of select Indian retailers using three related methodologies: Data Envelopment Analysis (DEA), Malmquist Productivity Index (MPI) and Bootstrapped Tobit Regression.
Findings
DEA analysis has shown that five retail firms out of selected 18 are found as efficient under the CCR model of DEA and seven out of 18 retail firms are efficient under the BCC model of DEA. MPI results indicate that 61 percent of the firms have progressed in terms of the MPI during the period under consideration. The Bootstrapped Tobit Regression shows that number of retail outlets and mergers and acquisitions can be considered as the driving forces influencing efficiency of retailers in India.
Research limitations/implications
The paper has a limitation with reference to the availability of data for a few retail outlets, especially in the modeling through the Bootstrapped Tobit Regression.
Originality/value
This study seems to be the first in applying productivity analysis using DEA, MPI and Bootstrapped Tobit Regression for the Indian retail sector.
Keywords
Acknowledgements
The authors would like to acknowledge the support and guidance extended by Dr Ravi Kulkarni, faculty Symbiosis Centre for Management and Human Resource Development, Pune, India.
Citation
Gandhi, A. and Shankar, R. (2014), "Efficiency measurement of Indian retailers using Data Envelopment Analysis", International Journal of Retail & Distribution Management, Vol. 42 No. 6, pp. 500-520. https://doi.org/10.1108/IJRDM-10-2012-0094
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited