The impact of manager promotion programs on store performance: Evidence from 3C chain stores in Taiwan

This study investigates how chain store performance is affected by a store manager promotion program that considers inventory management-related indicators such as inventory loss and inventory turnover. The study was conducted using data from the largest 3C (computers, communications, and consumer electronics) chain store company in Taiwan. It is found that average store profitability and efficiency improve after implementing the manager promotion program. The result suggests that the promotion program induced store managers to exert greater efforts towards inventory management and thus improves store performance.