Performance assessment of manufacturing SMEs: a frontier approach

2014 ◽  
Vol 114 (5) ◽  
pp. 797-816 ◽  
Author(s):  
Muhammet Enis Bulak ◽  
Ali Turkyilmaz
Keyword(s):  
Best Practice ◽  
Small And Medium Enterprises ◽  
Evaluation Model ◽  
Distribution Channel ◽  
Measurement Model ◽  
Efficiency Score ◽  
Pricing Policy ◽  
Competitive Priorities ◽  
Content Type ◽  
Financial Power

Purpose – The purpose of this paper is to measure and evaluate the performance efficiency of manufacturing small and medium enterprises (SMEs) in Turkey. The industry-based efficiency evaluation provides management with information regarding the relatively best practice sectors in the observation sets and locates the relatively inefficient sectors by comparing with the best practiced ones. Design/methodology/approach – In this study, an evaluation model is constructed to come up with efficiency analysis for manufacturing SMEs and output-oriented CCR data envelopment analysis approach is utilized to figure out best practiced SMEs. The proposed efficiency measurement model is utilized for 744 SMEs from ten different sectors. Based on the efficiency results, efficiency score of the studied sectors are compared and improvements needed for becoming an efficient unit are reported. Findings – The results showed that 94 companies efficiently performed in general perspective. The analysis also revealed that “Wearing Apparel, Dressing and Dyeing of Fur” and “Chemicals and Chemical Products” manufacturing sectors were found to be the inefficient of the overall usage of strategic competitive priorities. Originality/value – Based on the previous literature, this study brings more recent perspectives such as service activities and financial power to the four main competitive priorities of cost, quality, flexibility and delivery. The variables used in this study are as follows: Proximity to Market, Ability to Control Costs, Potential Labor Force, Product Quality, Prompt Advantage, Certification, Product Assortment, Distribution Channel, Pricing Policy, Service, Capital, Machinery-Equipment Track, Profit Margin and Market Share.

Measuring the performance efficiency of Turkish electrical machinery manufacturing SMEs with frontier method

2016 ◽  
Vol 23 (7) ◽  
pp. 2004-2026 ◽  
Author(s):  
Muhammet Enis Bulak ◽  
Ali Turkyilmaz ◽  
Metin Satir ◽  
Muhammad Shoaib ◽  
Muhammad Shahbaz
Keyword(s):  
Best Practice ◽  
Swot Analysis ◽  
Manufacturing Sector ◽  
Evaluation Model ◽  
Measurement Model ◽  
Efficiency Score ◽  
Manufacturing Companies ◽  
Electrical Machinery ◽  
Content Type ◽  
Machinery Manufacturing

Purpose The purpose of this paper is to concentrate on measuring and evaluating the performance efficiency of electrical machinery manufacturing small- and medium-sized enterprises (SMEs) in Turkey. The industry-based efficiency evaluation provides management with information including the relatively best practice firms in the observation sets and locates the relatively inefficient firms by comparing with the frontiers. Design/methodology/approach In this study, an evaluation model, based on previous literature and recent industry SWOT analysis, is proposed to carry out efficiency analysis for electrical machinery manufacturing SMEs and output-oriented CCR data envelopment analysis methodology is used to find out frontier SMEs. The proposed efficiency measurement model is used for 93 SMEs from electrical machinery manufacturing sector. Findings Rely on the model results, efficiency score of the firms are compared and enhancements required for becoming an efficient unit are denoted. This study is based on previous research model that was carried out for ten different industries. The results indicated that 39 out of 93 companies efficiently performed in general perspective. The analysis also resulted that firms have significant resource excesses and shortages on outputs. Originality/value The distinguished way of this study is to evaluate Turkish electrical machinery manufacturing companies’ resources relying on performance efficiency model that compromises of strategic competitive priorities and also the model provides enhancement opportunities to SMEs for being more competitive in the sector. The characteristics features of the firms are offered with respect to demographic, financial and quality perspectives.

Technical efficiency and its determinants in the Indian textile garments industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulla ◽  
Shiv Kumar
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Textile Industry ◽  
Small And Medium Enterprises ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Value Chains ◽  
Small Scale ◽  
Content Type ◽  
Medium Enterprises

Purpose This paper aims to examine technical efficiency and its determinants in Indian textile garments industry in post-agreement on textiles and clothing regime and evaluate the technical efficiency among micro, small and medium enterprises (MSMEs) firms. Design/methodology/approach This study uses unbalanced panel data for the period 2005–2010 to 2015–2016. The stochastic frontier function is used to estimate technical efficiency and its determinants. Findings The results show that the overall ecosystem of textile garments’ value chains could be improved to enhance the technical efficiency thereof. The result also reveals that small-scale firms have the highest technical efficiency scores, and medium-scale firms have the least technical efficiency score among all the categories of MSMEs. Research limitations/implications The textile garments industry needs to define its innovation strategies, as these strategies lead to different results that can be achieved only through the management of resources dedicated to the generation and implementation of innovations. Practical implications This study has shown that to offset India’s cost disadvantage in the international markets, there is a need to develop an ecosystem of textile manufacturing and value chains, eliminate the inverted duty structure (where inputs are taxed at a higher rate than the final product) and switch over from shuttle looms toward shuttle-less looms. This would unleash the potential of textile and garments industry and make it globally competitive and technically efficient. Further, there will be an alignment with the ease of doing business with an appropriate mix of policy, technology, institution, infrastructure, information and services. Originality/value Using frontier production function takes stochastic context into account for the dynamic character of technical efficiency and its components. Most of the past studies have assessed technical efficiency at the aggregate level using three-digit National Industrial Classification (NIC) or four-digit NIC code. An analysis at higher levels of aggregation masks the variation in technical efficiency. This study used five-digit NIC data to measure the firm-specific technical efficiency of the textile industry. According to the authors’ knowledge, this study is the first of its kind in the Indian textile industry using stochastic frontier approach and panel data. Further, it also looks at the contribution of different determinants in technical efficiency to the firms.

scholarly journals Two-Step Manufacturing Process Measurement Model Using Qualitative and Quantitative Data—A Case of Newbuilding Dry-Docking

2021 ◽  
Vol 9 (5) ◽  
pp. 464
Author(s):  
Denis Rabar ◽  
Danijela Rabar ◽  
Duško Pavletić
Keyword(s):  
Manufacturing Process ◽  
Quantitative Data ◽  
Best Practice ◽  
Efficient Frontier ◽  
Measurement Model ◽  
Efficiency Score ◽  
Performance Estimation ◽  
Analytic Hierarchy ◽  
Process Measurement ◽  
The Given

Newbuilding dry-docking is a part of the shipbuilding manufacturing process, common for vessels built on slipways. The subject of this research is steel-built vessels intended for non-restricted sea-going navigation. Based on former experience, the necessity of the dry-docking projects measurement has been noted as a managerial tool for performance estimation and project comparison. The dry-docking project is a complex task which includes the first self-propelled sea passage and the transfer of the manufacturing process to a remote place. The dry-docking result is a surveyed and coated vessel ready for sea trials and five-year service until the next dry-docking. This paper deals with a model which enables process measurement using the analytic hierarchy process (AHP) method for qualitative data related to the dry-docking places and data envelopment analysis (DEA) for quantitative data related to the vessels’ technical and cost data. The modelled data are collected from the completed dry-dockings, and the twenty-nine studied vessels represent the decision-making units (DMU) used in two-step process measurement calculations. The obtained results can distinguish the efficient DMUs, which create an efficient frontier as benchmarks or “the best practice units” in the given DMU set. For the non-efficient DMUs, the efficiency score and rate of improvements needed to reach the efficient frontier will be calculated, and the sources of inefficiency will be recognized.

Identification and testing of barriers to sustainable manufacturing in the automobile industry: a focus on Indian MSMEs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naveen Virmani ◽  
Sasadhar Bera ◽  
Rohit Kumar
Keyword(s):  
Factor Analysis ◽  
Automobile Industry ◽  
Best Practice ◽  
Small And Medium Enterprises ◽  
Sustainable Manufacturing ◽  
Primary Data ◽  
Content Type ◽  
Policy Interventions ◽  
Government Rules ◽  
Medium Enterprises

PurposeThe purpose of the study is two-fold. First, to find out the different barriers that prevent the implementation of sustainable manufacturing practices in the case of Micro, Small and Medium Enterprises (MSMEs). Second, quantifying the relative intensity of these barriers to understand the importance and dependence power of the observed variables.Design/methodology/approachPrimary data were collected via structured questionnaires from 150 Indian MSMEs working in the automobile industry. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) was performed. Finally, barriers are ranked using graph theory and matrix approach (GTMA), considering the inheritance and interaction among the observed variables.FindingsThere are a total of 22 barriers to “sustainable manufacturing”. EFA and CFA models confirmed four different categories of barriers. In order of importance, they are ranked as – production and operations related; organization related; collaboration related; and government rules and regulations.Practical implicationsThe findings show that there are multiple barriers to sustainable manufacturing. The barriers are categorized into four major categories, and their ranking provides an opportunity for prioritization from both policy and managerial perspectives. The barriers can be overcome through both policy interventions as well as through best practice sharing, benchmarking and organizational-wide initiatives.Originality/valueThe study is among the first studies that provide valuables insights on what are the 22 different barriers to sustainable manufacturing and its relevance to the MSMEs working in the automobile industry. The study would provide further opportunities for similar studies in different sectors.

Developing and validating the components of Maqasid al-Shari’ah-based performance measurement model for Islamic banks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kazi Md Tarique ◽  
Rafikul Islam ◽  
Mustafa Omar Mohammed
Keyword(s):  
Performance Evaluation ◽  
Evaluation Model ◽  
Group Discussion ◽  
Relevant Literature ◽  
Well Being ◽  
Measurement Model ◽  
Performance Measure ◽  
Islamic Banks ◽  
Content Type ◽  
Performance Evaluation Model

Purpose The purpose of this paper is to develop and subsequently validate a Maqasid al-Shari’ah-based performance evaluation model for Islamic banks. Design/methodology/approach Initially, a comprehensive review of the existing and relevant literature is carried out and a prototype evaluation model has been developed. This has been augmented and refined through in-depth interviews of Shari’ah scholars and banking experts. Afterwards, the modified model has been validated by taking inputs from academics and Islamic banking practitioners through a focus group discussion. Findings The major outcome of the present work is a Maqasid al-Shari’ah-based performance evaluation model for Islamic banks. At the inception of the work, the Maqasid frameworks of Imam al-Ghazali and Abu Zahrah were combined. The combined model incorporates various dimensions, elements and the corresponding measures of three components, namely, justice, education and maslahah. Research limitations/implications Not being able to test the model statistically or empirically can be considered as a limitation. Practical implications The comprehensive theoretical framework of the developed model addresses all aspects of human well-being. Thus, if implemented the model will ensure welfare for all the stakeholders. It will also encourage the regulators to introduce new reporting standards which will be more reflective of Maqasid al-Shari’ah. Social implications Fulfilling Maqasid will create a positive brand image for Islamic banks, which will attract more customers both Muslims and non-Muslims. Thus, this will create a wider scope for earning more revenues. Originality/value There has been concern that Islamic banks are converging towards conventional banking systems and the same performance measure instrument is being used to evaluate the performance of both Islamic and conventional banks. The present work has developed a Maqasid al-Shari’ah-based performance evaluation model for Islamic banks.

Strategic talent management

2018 ◽  
Vol 10 (1) ◽  
pp. 28-41 ◽  
Author(s):  
Maura Sheehan ◽  
Kirsteen Grant ◽  
Thomas Garavan
Keyword(s):  
Best Practice ◽  
Small And Medium Enterprises ◽  
Talent Management ◽  
Critical Discussion ◽  
Leadership Role ◽  
Employer Branding ◽  
Content Type ◽  
Emotional Labour ◽  
Business Goals ◽  
The Impact

Purpose The purpose of this paper is to provide an academic viewpoint on contemporary factors associated with talent management (TM) in the hospitality and tourism sector. Design/methodology/approach A critical discussion of macro- and micro-level factors is provided, while highlighting opportunities and challenges for TM policies and practices. The influence of senior managers in developing TM, with emphasis on small and medium enterprises, is examined and examples of ‘best practice’ in TM are outlined. Findings Given the scale and importance of the sector to economic growth, it is imperative that governments assume a greater leadership role in shaping the training and education agenda. TM practices need to reflect the uniqueness and complexity of the sector and effective implementation of TM requires CEO/Owner–Manager commitment and cascading down of a talent mind-set/culture within organizations. Examples of best practice in TM provide a significant opportunity for the sector to improve both its employer branding and competitiveness. Examples include: aligning TM with strategic business goals; provisions of robust data generated across HR functions; and demonstrating the impact of TM on employees’ enhanced emotional labour through higher levels of engagement and motivation and on organizational outcomes. Practical implications The paper argues that organizations need to take each dimension of TM more seriously than many organizations have done so in the past. Coherent TM practices, in particular, competitive reward and training and development opportunities, will improve employer branding and will directly have an impact upon the quality of applications received by organizations. Originality/value The paper provides important insight and practical recommendations on how the sector can improve its productivity and future sustained competitiveness in the challenging times ahead.

The role of relationship quality and loyalty programs in building customer loyalty

2020 ◽  
Vol 35 (11) ◽  
pp. 1645-1657 ◽  
Author(s):  
Piotr Kwiatek ◽  
Zoe Morgan ◽  
Marsela Thanasi-Boçe
Keyword(s):  
Relationship Quality ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Measurement Model ◽  
Loyalty Programs ◽  
Equation Modeling ◽  
Company Performance ◽  
Relational Exchange ◽  
Content Type ◽  
Willingness To Recommend

Purpose Despite the abundance of B2B loyalty programs (LPs), the research on their interplay with relationship marketing is scarce. The purpose of this paper is to investigate a LP (a relational practice) on a transactional business market to test if and how a B2B LP affects relationship outcomes. Design/methodology/approach The study is based on dyadic research in a multi-theory framework. Data were collected from 200 small and medium enterprises that purchase office supplies from a company and merged with the company’s internal records.The formative-reflective measurement model is estimated using structural equation modeling – partial least squares (SEM-PLS). Findings Relationship quality (RQ) directly affects sales and customer share of wallet. The effect is strengthened by customer activity in a LP. RQ results directly in a longer tenure and willingness to recommend only for members of a LP. Research limitations/implications RQ is driven mainly by customer’s evaluation of prior experience with a supplier, while a LP is based on a forward-looking promise of a reward. The results of the study point to the level of customers’ activity in a LP as a boundary condition of the program’s efficacy. Practical implications RQ affects both attitudinal and behavioral outcomes but through distinct mechanisms. Once a supplier is a preferred one, LP membership strengthens the attitudinal outcome of a relationship. The effect of RQ on company performance is magnified by the level of customer activity in a LP but not by the membership status. Originality/value The theoretical framework integrates transaction costs, relational contract and relational exchange theories to investigate a LP on a transactional market. The study adds to the scant literature on LPs in business-to-business and provides evidence for similarities and differences in comparison to consumer research.

Conference report: innovation, interaction … and a lot of data: first time reflections on Internet Librarian International, UK 2018

2019 ◽  
Vol 36 (2) ◽  
pp. 21-22
Author(s):  
Ray Harper
Keyword(s):  
Best Practice ◽  
New Technologies ◽  
Conference Report ◽  
Library Services ◽  
New Techniques ◽  
Content Type ◽  
Making A Difference ◽  
Analyse Data ◽  
Physical Spaces ◽  
First Time

Purpose The purpose of this paper is to summarise a number of presentations at Day 1 of the Internet Librarian International conference, London, UK (16 October 2018). This was the 20th conference in the series, and the three key themes included were the next-gen library and librarian; understanding users, usage and user experience; and inclusion and inspiration: libraries making a difference. Design/methodology/approach This paper reports from the viewpoint of a first-time attendee of the conference. This summarises the main issues raised by each presentation and draws out the key learning points for practical situations. Findings The conference covered a variety of practical ways in which libraries can use technology to support users and make decisions about services. These include developing interactive physical spaces which include augmented reality; introducing “chat-bots” to support users; using new techniques to analyse data; and piloting new ways to engage users (such as coding clubs). A key theme was how we use and harness data in a way that is ethical, effective and relevant to library services. Originality/value This conference focussed on practical examples of how library and information services across sectors and countries are innovating in a period of huge change. The conference gave delegates numerous useful ideas and examples of best practice and demonstrated the strength of the profession in adapting to new technologies and developments.

OCIE issues risk alert on the most frequently identified advisory fee and expense compliance issues

2018 ◽  
Vol 19 (4) ◽  
pp. 1-3
Author(s):  
Robert Van Grover
Keyword(s):  
Design Methodology ◽  
Best Practice ◽  
Investment Management ◽  
Content Type ◽  
Informed Decisions ◽  
Policies And Procedures ◽  
The Us ◽  
Investment Advisers ◽  
Practical Implications

Purpose To summarize and interpret a Risk Alert issued on April 12, 2018 by the US SEC’s Office of Compliance Inspections and Examinations (OCIE) on the most frequent advisory fee and expense compliance issues identified in recent examinations of investment advisers. Design/methodology/approach Summarizes deficiencies identified by the OCIE staff pertaining to advisory fees and expenses in the following categories: fee billing based on incorrect account valuations, billing fees in advance or with improper frequency, applying incorrect fee rates, omitting rebates and applying discounts incorrectly, disclosure issues involving advisory fees, and adviser expense misallocations. Findings In the Risk Alert, OCIE staff emphasized the importance of disclosures regarding advisory fees and expenses to the ability of clients to make informed decisions, including whether or not to engage or retain an adviser. Practical implications In light of the issues identified in the Risk Alert, advisers should assess the accuracy of disclosures and adequacy of policies and procedures regarding advisory fee billing and expenses. As a matter of best practice, advisers should implement periodic forensic reviews of billing practices to identify and correct issues relating to fee billing and expenses. Originality/value Expert guidance from experienced investment management lawyer.

Mitigation of road traffic crash hazard in Pakistan

2014 ◽  
Vol 23 (5) ◽  
pp. 567-585
Author(s):  
Muhammad Masood Rafi ◽  
Ashar Hashmat Lodi ◽  
Muhammad Arsalan Effendi
Keyword(s):  
Road Traffic ◽  
Evaluation Model ◽  
Road Traffic Crash ◽  
Potential Hazard ◽  
Suggested Model ◽  
Male Population ◽  
Content Type ◽  
The Road ◽  
On The Road ◽  
The City

Purpose – Road traffic crashes (RTCs) result in creating significant social and economic hazard for affectees, their families and society. The purpose of this paper is to present studies which were conducted to study the patterns of RTCs in Karachi which is a metropolitan city of Pakistan. The studies were conducted on one of the busiest roads in the city named as Shara-e-Faisal. The influence and contribution of different factors in RTCs has been studied and hazardous road sections of Shara-e-Faisal have been identified. Based on the data analysis, an evaluation model has been suggested to reduce the hazard of RTCs on Shara-e-Faisal. The objective of the presented studies is to increase the present level of safety of road travel by reducing crashes on Shara-e-Faisal. Design/methodology/approach – Existing data of RTCs in Karachi have been analysed for the presented studies. For this purpose, Shara-e-Faisal was divided in sections of 1 km length to study the vehicle crash pattern. Location surveys were conducted to record physical conditions of this road. A cluster analysis was carried out to identify hazardous sections of the road. An evaluation model has been suggested in the end to reduce the hazard of RTCs by identifying hazardous road sections of Shara-e-Faisal. Findings – The analysis of the data revealed that the crashes were higher over weekend and on Monday. Male population, particularly young people, and motorcycle riders were the largest affectees of RTCs. In general, more daytime crashes were recorded as compared to nighttime crashes. The crashes in the mid block of the road and those involving rear-end collisions were higher. The hazardous road locations were related to poor road conditions. Statistical analysis indicated that alternate routes were required to reduce the RTC hazard on Shara-e-Faisal. Research limitations/implications – The paper is a small, but an original, contribution to identify a potential hazard which is faced by the community in the city. This is the first attempt (to the best of authors’ knowledge) to address the issue of RTCs in Karachi from an engineering view point. Practical implications – The suggested model can be employed by the authorities as a guideline to mitigate the hazard of road crashes in the country. Originality/value – The paper provides valuable information on the road traffic incidents, their pattern and contributing factors in one of the largest metropolis of Pakistan. The suggested model can become helpful in reducing RTCs in Pakistan.

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