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The impact of supervisory monitoring on high-end retail sales productivity

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  • Rajiv Banker
  • Seok-Young Lee
  • Gordon Potter
  • Dhinu Srinivasan

Abstract

Based on a two-stage analysis of a panel of data on 12 outlets of a high-end retailer for 24 months, we investigate how the level of supervisory monitoring affects retail sales productivity. In the first stage, we use Data Envelopment Analysis (DEA) to compute the relative productivity of retail outlets in using their labor and capital resources to generate store sales. In the second stage, we regress the logarithm of DEA scores on contextual variables to obtain consistent estimators of the impact of contextual variables on productivity (Banker and Natarajan in Operation Research 56:48–58, 2008 ). Contrary to agency theoretic prediction that supervisory monitoring leads to an increase in retail sales productivity, our empirical results indicate that the higher the level of supervisory monitoring, the lower is the retail sales productivity for high-end retail outlets. Copyright Springer Science+Business Media, LLC 2010

Suggested Citation

  • Rajiv Banker & Seok-Young Lee & Gordon Potter & Dhinu Srinivasan, 2010. "The impact of supervisory monitoring on high-end retail sales productivity," Annals of Operations Research, Springer, vol. 173(1), pages 25-37, January.
    • Handle: RePEc:spr:annopr:v:173:y:2010:i:1:p:25-37:10.1007/s10479-009-0572-x
    DOI: 10.1007/s10479-009-0572-x
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    Cited by:

    1. Hsihui Chang & Hiu Choy & Iny Hwang, 2015. "An empirical study of returns to scale of CPA firms in the post SOX era," Annals of Operations Research, Springer, vol. 229(1), pages 253-264, June.
    2. Roxani Karagiannis, 2015. "A system-of-equations two-stage DEA approach for explaining capacity utilization and technical efficiency," Annals of Operations Research, Springer, vol. 227(1), pages 25-43, April.
    3. Arabmaldar, Aliasghar & Hatami-Marbini, Adel & Loske, Dominic & Hammerschmidt, Maik & Klumpp, Matthias, 2024. "Robust data envelopment analysis with variable budgeted uncertainty," European Journal of Operational Research, Elsevier, vol. 315(2), pages 626-641.
    4. Natália P. Monteiro & Odd Rune Straume, 2024. "Management Practices, Pay, and Pay Inequality," Journal of Labor Research, Springer, vol. 45(2), pages 254-304, June.
    5. Liang, Jing & Yang, Shilei & Xia, Yu, 2023. "The role of financial slack on the relationship between demand uncertainty and operational efficiency," International Journal of Production Economics, Elsevier, vol. 262(C).

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    Keywords

    Efficiency; DEA; Retail sector;
    All these keywords.

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