Measuring the impact of ICT labour on the efficiency of Turkish retail businesses: a stochastic frontier analysis

Abstract

This study examines the impact of information and communication technologies (ICTs) on efficiency in the Turkish retail trade sector using firm-level data. We employ a stochastic frontier model to analyse the effect of ICT labour and traditional non-ICT labour on productivity. Results indicate that Turkish retail firms operate with constant returns to scale and a labour-intensive technology. ICT labour has a positive effect on the technical efficiency of retailer firms, with a contribution comparable to that of non-ICT labour. Empirical results also suggest that, compared to large firms, small and medium-sized firms exhibit slightly higher technical efficiency.