An Empirical Approach to Evaluate Management Performance using the Trading Area Analysis: Focusing on Small- or Medium-sized Businesses

Small- or medium-sized retail businesses face difficulties in the aspects of scale economics or brand recognition as the distribution-industry opens the market, becomes bigger and franchise. Under these circumstances, the most favorable way for a stable management of the businesses is to choose anappropriate location. However, it is difficult for a small- or medium-sized business to evaluate its competitive edge through accurate trading area analysis. This paper proposes measurement models for management performance evaluation using the trading area analysis for the small- or medium-sized retail businesses to easily utilize. In addition, empirical analyses are performed for actual small-sized businesses based on proposed models. It is considered to be helpful manysmall- or medium-sized businesses facing difficult business environment easily check appropriateness of its trading area and management performance despite poor analysis capabilities by using the proposed evaluation model.