Title: Does profit sharing enhance productivity: evidence from the retail food industry in Canada

Authors: Mahmoud Yousef Askari; Ghaleb A. El Refae

Addresses: Department of Business Administration, College of Business, Al Ain University of Science and Technology, P.O. Box 64141, Al Ain, UAE ' Department of Business Administration, College of Business, Al Ain University of Science and Technology, P.O. Box 64141, Al Ain, UAE

Abstract: In this paper, we provide further support for using profit sharing to enhance productivity and profitability from the retail food industry in Canada. The overall gross profit percentage (GP%) of a retail store was used as a measure of productivity and profitability for the store. In addition, and as another measure of productivity, the study compared the performance of one of the most sensitive departments in a food retail store, and that is the GP% of the produce department. Results show that the overall actual GP% of the studied location has increased by 1.74% in the first quarter of using profit sharing, when compared with the previous quarter. Results also show an actual GP% increase of 1.12% for the profit sharing quarter when compared with the previous year that preceded the shift to profit sharing compensation system.

Keywords: profit sharing; productivity; motivation; performance; incentives; Canada.

DOI: 10.1504/IJBEX.2020.110955

International Journal of Business Excellence, 2020 Vol.22 No.3, pp.336 - 351

Received: 14 Jan 2019
Accepted: 06 Apr 2019

Published online: 07 Oct 2020 *

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