The Malmquist productivity index has many attractive features. One is that it can be epxressed as the product of a technical efficiency change index and a technical change index. In this paper we express the technical change index as the product of a magnitude index and a bias index. We then express the bias index as the product of an output bias index and an input bias index, and we state conditions under which each bias index makes no contribution to productivity change.
A B S T R A C TWe develop an analytical framework on the basis of the economics of business performance to provide quantitative insight into the link between a firm's business model choices and their profit consequences. The method is applied to Walmart by building a qualitative representation of its business model and mapping that representation on an analytical model that quantifies the company's sources of advantage over time. The analysis suggests that the effectiveness of a particular business model depends not only on its design (its levers and how they relate to one another) but, most importantly, on its implementation (how the levers are pulled).
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