Title: Benchmarking efficiency of Indian retailers using parametric and non-parametric approach

Authors: Nishant Mukesh Agrawal

Addresses: Institute of Management, Nirma University, India

Abstract: The purpose of this paper is to study the performance of Indian retailers to conclude meaningful insights which can help management of retailers and improve further decisions. The paper has been discussed efficiency of 12 Indian retailers during 2015-2017 using data envelopment analysis (DEA), Malmquist productivity index (MPI) and stochastic frontier analysis (SFA) which is latest powerful efficiency measurement techniques. Total asset and total expenditure considered as input and gross sale, total income considered as output. In DEA technique, CCR and BCC model has been used. Under CCR model, only 4 out of 12 retailers are found to be efficient and 7 out of 12 retailers found to be efficient under BCC model. MPI shows 4 out of 12 Indian retailers progression. SFA is one of parametric approach shows that, no of employee and total expenditure can be considered to driving force for influencing total income of Indian retailers.

Keywords: data envelopment analysis; DEA; Malmquist productivity index; MPI; stochastic frontier analysis; SFA; efficiency; Indian retailer; performance measurement.

DOI: 10.1504/IJLSM.2020.105918

International Journal of Logistics Systems and Management, 2020 Vol.35 No.3, pp.372 - 386

Received: 02 May 2018
Accepted: 24 Jun 2018

Published online: 12 Mar 2020 *

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