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Measuring retail productivity What really matters?

journal contribution
posted on 01.05.2002, 00:00 authored by Chris DubelaarChris Dubelaar, M Bhargava, D Ferrarin
Retail productivity measurement has commonly used ratios of outputs, such as sales, and input factors like capital and labour to measure
different facets of productivity. However, these store-specific ratios are also likely to be influenced by other context-specific factors affecting
the reliability and validity of these measures. This paper contributes to the research on productivity measurement by developing and testing a
composite set of measures for retail productivity including exogenous factors. The empirical work is based on pharmacists in New Zealand
(354) and Australia (336) using an instrument that is pretested in Canada (74) for both its external and internal validity. The data were
analysed using LISREL to create comprehensive models of the relationships between and among the identified productivity factors. The
study revealed that some competitive factors and demand-related factors play a significant role in the productivity of the stores in both New
Zealand and Australia. This implies that correct measurement of retail productivity must include exogenous factors to be accurate. The
theoretical and managerial implications of these results are discussed.

History

Journal

Journal of business research

Volume

55

Issue

5

Pagination

417 - 426

Publisher

Elsevier

Location

Amsterdam, The Netherlands

ISSN

0148-2963

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal

Copyright notice

2002, Elsevier