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Measurement of Efficiency of the Select Indian Manufacturing Firms and Its Determinants: Implications of Firm-Specific and Macroeconomic Factors

In: Indian Manufacturing Sector in Post-Reform Period

Author

Listed:
  • Sumit Kumar Maji

    (The University of Burdwan)

  • Arindam Laha

    (The University of Burdwan)

  • Debasish Sur

    (The University of Burdwan)

Abstract

Firm-level efficiency is at the centre of competitive strength and financial resilience of any business firm. Operational efficiency directly contributes towards amplifying the profitability and subsequently value maximization of a firm. This chapter makes an effort to measure the level of technical efficiency of the firms in the Indian manufacturing sector by using stochastic frontier analysis. The various microeconomic and macroeconomic factors affecting such technical efficiency were also investigated in this chapter. Sector-wise variation in the level of efficiency was very much evident from the outcome of the study. The effect and significance of different microeconomic and macroeconomic factors were not uniform across different sub-sectors within the Indian manufacturing industry during the period of study.

Suggested Citation

  • Sumit Kumar Maji & Arindam Laha & Debasish Sur, 2022. "Measurement of Efficiency of the Select Indian Manufacturing Firms and Its Determinants: Implications of Firm-Specific and Macroeconomic Factors," Springer Books, in: Indian Manufacturing Sector in Post-Reform Period, chapter 0, pages 69-88, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-2666-2_4
    DOI: 10.1007/978-981-19-2666-2_4
    as

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