A comparison of regular and franchise systems in the real estate brokerage industry in terms of operating efficiencyApplication of the data envelopment analysis

摘要

This study applied data envelopment analysis (DEA) to analyze the operating efficiency of Taiwan’s real estate brokerage firms and provides a reference for inefficient firms. The empirical results are the following: (1) through an analysis of the relative efficiencies, given their organizational management and distribution of resources, chain stores were found to more easily achieve efficiency than a franchise system; (2) using slack variable analysis, franchise systems were found to have considerable advertising expenses and lease and sales cases of houses, while regular chain stores have considerable rent cost and lease and sales cases of houses; and (3) based on a sensitivity analysis, the real estate brokerage industry has a higher sensitivity to commission revenue and a lower sensitivity to the salaries of non-salespersons.