바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

  • P-ISSN1738-3110
  • E-ISSN2093-7717
  • SCOPUS, ESCI

Development of Performance Indices for Agro-food Distribution Corporations Based on the AHP Method

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2017, v.15 no.12, pp.95-102
https://doi.org/https://doi.org/10.15722/jds.15.12.201712.95
Kim, Dong-Hwan
Hyun, Jong-Ki

Abstract

Purpose - This study aims to develop diagnostic indices for managerial performance of agro-food distribution corporations. In particular, weights of diagnostic indices were estimated using the AHP method. Management diagnosis on agro-food distribution corporations is expected to increase their competitiveness in the domestic market as well as in international markets. Research design, data, and methodology - It develops weights or importance of the diagnostic indices based upon the survey of 21 experts in food distribution management. The survey was carried out using e-mail. Management diagnostic indices were developed based upon four BSC(Balanced Scorecard) perspectives of finance, learning/growth/leadership, customer, and internal process/technology. Results - Diagnostic indices on financial perspective consist on profitability, productivity, growth, stability and activity. Learning and leadership perspective indices consist of management will, CEO leadership, level of learning, innovation, and level of management information system. Customer perspective indices are branding, customer and channel management and internal process/technology indices consist of fourteen sub-indices representing technologies, efficiency, and dynamics. It was estimated that the weight of financial perspective index was 0.3, internal process/technology perspective index 0.248, customer category index 0.247, and learning, growth and leadership perspective index 0.205. This study also estimates weights of sub-indices for managerial diagnosis by four different perspectives. Estimated weight of profitability (0.085) is the greatest among financial perspective indices, followed by stability (0.072), growth (0.053), productivity (0.051), and activity (0.038). While estimated weights of leadership, capability, and information indices are 0.100, 0.061, and 0.044 respectively, weights of marketing, customer management, and quality and service indices are 0.104, 0.093, and 0.051, respectively. Among internal process/technology perspective, estimated weights of efficiency, technology, and innovation indices are 0.106, 0.088, and 0.054, respectively. Conclusions - The diagnostic indices for managerial performance of agro-food distribution corporations would be utilized by agro-food distribution corporations themselves, extension service institutions, and consultants. It is also expected that central and local governments use diagnostic indices developed in this study for the purpose of evaluating the effects of governmental support programs for agro-food distribution corporations. Futhermore researchers and consultants would modify diagnostic indices developed in this study, reflecting characteristics and situation of types of agro-food distribution corporations.

keywords
Distribution Corporation, Balanced Scorecard (BSC), AHP

Reference

1.

Kumari Neeraj (2016). Managing Business Quality Using a Performance Management System. The International Journal of Industrial Distribution &Business 6(3), 9-17.

2.

Lee, J. B., Son, C, S., Kim, Y. H., & Lee, H. K. (2007). Development of Standard Diagnostic Models for Pig Farms – Application of BSC and AHP/FPP Models. Korean Journal of Agricultural Economics, 8(1), 99-128.

3.

Lee, S. Y., Park, S. K., & Jung, W. H. (2017). Analysis of Priories among Research Topics on Farm Management. Journal of Agricultural Management and Policy. 44(3), 659-677.

4.

Mohammed, Mehadi Masud Mazumder (2017). Top-executives compensation: The role of Corporate Ownership Structure in Japan. The Journal of Asian Finance, Economics and Business. 4(3), 35-43.

5.

Muhammad, H., & Rehman, A. U., & Waqas, M. (2016). The effect of Corporate Governance Practices on Firm Performance: Evidence from Pakistan. The East Asian Journal of Business Management, 6(1), 5-12.

6.

Na, R. H., Yoon, Y. C., & Kim, Y. J. (2010). Performance Analysis of Traditional Theme Villages using AHP Methods. Journal of Agriculture and Life Science, 44(4), 57-68.

7.

Park, C. J., & Jeong, T. S. (2012). Study on the Measurement of Management Performance based on BSC: Examining Japanese Food Manufacturers, Journal of Distribution Science, 10(11), 11-20.

8.

Saaty, T. L. (1990). How to Make a Decision the Analytic Hierarchy Process European Journal of Operational Research, 48(1), 9-16.

9.

Seo, Y. J., Seo, Y. S., & Lee, B. O. (2017). Development of Evaluation Indices for 6th Industry Business Entities – Application of AHP analysis. Journal of Venture and Start-up, 8(4), 177-191.

10.

Shin, Y. K., Kim, C. K., & Kim, T. Y. (2015). Determination of Priories among Environment Friendly Programs using AHP methods. Journal of Rural Economy, 28(2), 39-56.

11.

So, S. Y., Yoo, C. J., Chang, D. H., & Hwang, Y. M. (2007). A Study on Management Recording and Diagnosis of Farms. Rural Development Administration Research Report, Suwon, Korea.

12.

Son, C. S., Cho, Y. B., Kim, M. O., Hong, S. H., & Cho, S. J. (2015). A Study on Standard Diagnostic Tools for Farms. Rural Development Administration Research Report, Jonju, Korea.

The Journal of Distribution Science