Regional regulation analysis of performance in Spanish retailing

Abstract

Purpose

The purpose of this paper is to analyze the impact on Spanish retail firms' efficiency of the regulatory process experienced in the period 1994‐2002. In particular, the paper aims to study the influence of the Retail Trade Act of 1996, by means of which the Spanish state transferred authority to concede licenses for opening commercial establishments to the regions.

Design/methodology/approach

The objectives have been achieved by non parametric methodology of analysis of efficiency at static and dynamic level (kernel density).

Findings

The results confirm a decrease in firms' technical efficiency in the post‐regulatory period between 1996 and 2002. The different patterns of convergence/divergence in the distribution of technical efficiency depend on firm size. Small firms experience a process of divergence to lower efficiency levels from 1994 to 2002.

Research limitations/implications

Perhaps more regional analysis is also needed. In this sense, it would be interesting to consider the region within which the firms operate, and hence take into account the differences in regulatory processes in each region by size or more precisely by outlet type.

Practical implications

It is necessary to consider the implications that the regulatory processes can have for management in the environment of the retail industry.

Originality/value

The analysis of the efficiency with features of density kernel. As well as the usage of stochastic kernel. This has enabled dynamic effects in the analysis.

Citation

de Jorge Moreno, J. (2006), "Regional regulation analysis of performance in Spanish retailing", International Journal of Retail & Distribution Management, Vol. 34 No. 10, pp. 773-793. https://doi.org/10.1108/09590550610691356