Determinants of Efficiency in Manufacturing Firms: The Guide for Developing Countries
Keywords:
Economic Growth
Developing Economies
Human Resources Management
Production Efficiency
Organizational Performance
Abstract
Manufacturing is considered to be an important sector in the economy because it is able to promote wide and effective forward-looking links between other sectors of the economy. This study investigates the role of human capital as efficiency determinants for manufacturing firms using a single-step heteroscedastic SFA approach. We found that top managers' human capital, particularly experience and schooling years, has a significant impact on output and efficiency of manufacturing firms. Exports, foreign ownership, research and development (R&D) activities, and quality certification were found to be positively associated with performance. Bank loans were negatively related to total factor of production (TFP), whereas overdraft facilities showed a positive relation. Higher education of primary, secondary, and tertiary levels is a crucial factor in improving firm performance in developing countries.Downloads
Download data is not yet available.
Downloads
Published
2022-12-01
How to Cite
Rahaman, M., & Talukder, F. (2022). Determinants of Efficiency in Manufacturing Firms: The Guide for Developing Countries. Journal of Management World, 2022, 124–133. https://doi.org/10.53935/jomw.v2022i0.226
Issue
Section
Articles