Resource misallocation and production inefficiency

2018 ◽  
Vol 45 (6) ◽  
pp. 1272-1287 ◽  
Author(s):  
Manuel Salas-Velasco
Keyword(s):  
Production Efficiency ◽  
Oecd Countries ◽  
Training System ◽  
Productive Efficiency ◽  
Point Of View ◽  
Macroeconomic Performance ◽  
Technical Inefficiency ◽  
Content Type ◽  
Aggregated Data ◽  
Explanatory Variables

Purpose Recent studies have linked differences in aggregate productivity to misallocation of resources across firms. In contrast, the purpose of this paper is to study the macroeconomic performance of OECD economies from a production efficiency point of view and estimated the determinants of (in)efficiency with particular emphasis on misallocation of labor. Design/methodology/approach Following the pioneering work of Battese and Coelli, the authors proposed a parametric methodology to construct a world frontier that serves as a benchmark to compare the relative position of each country. The non-negative technical inefficiency effects are assumed to be a function of explanatory variables. By doing this, determinants of technical inefficiency are explicitly introduced in the model. Findings The results revealed that OECD countries to operate efficiently should expand their aggregate output by 22.6 percent without consuming more resources. A novel finding is that higher skill mismatch is associated with higher production inefficiency. Conversely, more flexible labor markets, and better management and human resource practices, lowered the inefficiency in production. The paper also analyzed the underlying factors driving skill misallocation in the job market. In this regard, a well-functioning education and training system and greater flexibility in the determination of wages are associated with lower levels of mismatch between the skills of individuals and those required by the jobs. Practical implications The measurement of the productive efficiency of an economy (or country) is crucial to governments. It is important to know how far a given economy can be expected to increase its output by simply increasing its efficiency, without absorbing further resources. In other words, it is relevant to know if a country could produce more with the same resources and, therefore, could increase per capita income and welfare. In this type of analysis what also matters is to identify what factors or variables explain that greater or lesser ability of a country to convert its resources into aggregate production. Originality/value Much research on efficiency measurement has focused on the firm or industry level, mainly to study the efficiency of financial institutions. Efficiency studies using aggregated data across countries are rare in the literature of efficiency. This paper aimed to contribute to filling that shortage evaluating the macroeconomic performance of a sample of OECD countries from the production efficiency point of view.

Competitiveness and production efficiency across OECD countries

2019 ◽  
Vol 29 (2) ◽  
pp. 160-180 ◽  
Author(s):  
Manuel Salas-Velasco
Keyword(s):  
Production Efficiency ◽  
Production Capacity ◽  
Oecd Countries ◽  
Productive Efficiency ◽  
Point Of View ◽  
Cross Sectional ◽  
Content Type ◽  
Second Stage ◽  
Stage Analysis ◽  
The Impact

PurposeThe purpose of this paper was to measure the efficiency of resource utilization across OECD countries aiming to verify that higher levels of competitiveness enhance the production capacity – the maximum possible output of an economy in a given period with the available resources.Design/methodology/approachThe author used a two-stage procedure to first estimate the cross-sectional efficiency scores of 18 OECD economies by data envelopment analysis, and then to assess the impact of contextual variables on efficiency running regressions in the second-stage analysis. In particular, in the second stage, the author examined the effects of competitiveness on the production efficiency of the countries, while controlling for other independent variables.FindingsThe results confirmed that the higher the level of competitiveness, innovation and sophistication factors predominantly, the higher the level of productive efficiency of the countries analyzed.Originality/valueThe paper is novel because it opens the black box of the aggregate process of production of the conversion of resources into a national product. From the social point of view, it is relevant to know if a country could produce more output with the same resources, such as labor and capital and, therefore, could increase per capita income and social welfare.

Watch the working capital of tier-two suppliers: a financial perspective of supply chain collaboration in the automotive industry

2016 ◽  
Vol 21 (3) ◽  
pp. 321-333 ◽  
Author(s):  
Xosé H. Vázquez ◽  
Antonio Sartal ◽  
Luis M. Lozano-Lozano
Keyword(s):  
Supply Chain ◽  
Panel Data ◽  
Value Chain ◽  
Production Efficiency ◽  
Point Of View ◽  
Supply Chain Collaboration ◽  
Working Capital ◽  
Content Type ◽  
Novel Approach ◽  
Second Tier

Purpose This paper aims to examine how lack of financial cooperation damages the operational efficiency of supply chains. The thesis is that economic and technological forces are provoking increasing financial tensions that push companies to transfer their credit needs and inventory requirements to their weakest suppliers. Thus, what might initially seem positive from an individual perspective can in fact generate losses in production efficiency for the supply chain as a whole. Design/Methodology/approach This paper uses official data collected from 116 first- and second-tier suppliers in the Spanish automotive components sector, covering nine years (2001-2009). The relationships between the key variables are analysed using panel data estimations. Findings Significant differences were found between the working capital (WC) of first- and second-tier companies, proving additionally that although this approach may temporarily improve the results of first-tier suppliers, it leads to lower production efficiency in plants throughout the value chain. Practical implications Practitioners should avoid short-sighted attitudes when organizing the supply chain on a cooperative basis, going beyond the conventional wisdom on physical and information flows between original equipment manufacturers and their suppliers to reach upstream stages and embracing financial considerations. Originality/value The paper takes a novel approach to the issue of inter-organizational collaboration in the supply chain, aiming to go beyond conventional Lean Supply practices. From an empirical point of view, while much of the research on the topic utilizes key informant insights collected using psychometric data collection techniques, this study uses different financial proxies collected from secondary panel data.

Measuring regional differences of construction productive efficiency in China

2019 ◽  
Vol 27 (4) ◽  
pp. 952-974
Author(s):  
Ming Luo ◽  
HQ Fan ◽  
Guiwen Liu
Keyword(s):  
Regional Differences ◽  
Production Efficiency ◽  
Efficient Frontier ◽  
Productive Efficiency ◽  
Advanced Technology ◽  
Eastern Region ◽  
Efficiency Improvement ◽  
Market Demand ◽  
Skilled Workers ◽  
Content Type

Purpose As one of the pillar sectors, China’s construction industry (CE) is not efficient in productivity with large regional gaps over the past decades. It is crucial for stakeholders to have insightful information on regional input of resources and output of productive efficiency for making policies and investment decisions. The purpose of this paper is to develop an efficiency measurement for the CE and explore the regional differences of construction productive efficiency across the three regions of China. Design/methodology/approach Data envelopment analysis (DEA) is an objective benchmarking methodology used for measuring the performance of construction productivity. Distance friction minimization (DFM) approach, based on DEA model, is applied to identify the causes of inefficiency, sources of growth and the optimal paths to efficient frontier for regional CE. Further studies are conducted to provide insightful information for efficiency improvement, according to DFM modeling results and empirical analysis. Findings The results indicate that eastern region leads construction development due to strong performance of coastal provinces. Faced with decreasing supply of skilled workers in developed region, investing more on construction plants and equipment for labor savings is more efficient to the long-term productivity growth of CE in the east. For developing midland region, heavy reliance on cheap manpower should be gradually relieved by allocating more budgets to vocational training and education program to boost quality labor supply, as well as making steady investment on construction equipment and advanced technology. In underdeveloped western region, raising construction labor wages is recommended to attract more workers to meet the market demand and achieve an optimal production efficiency in the CE. Originality/value The findings provide insights into the causes of inefficiency, the sources of growth and the best strategies for efficiency improvement in regional CE, recommendations are made for policy making and strategic planning to enhance the overall performance of China’s construction productive efficiency.

scholarly journals Technical inefficiency of the manufacturing sector in Laos: a case study of the firm survey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vanxay Sayavong
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Manufacturing Sector ◽  
Small Sample ◽  
Accounting System ◽  
Technical Inefficiency ◽  
Content Type ◽  
Credit Access ◽  
Frontier Analysis ◽  
Firm Survey

PurposeThis study aims to unlock the path of growth for sustainable economic development and accomplish the government's vision 2030 by ameliorating the productivity of the manufacturing sector in Laos.Design/methodology/approachThis study applied cross-sectional data of 2,009 firms from the national firm survey, namely the Economic Census Survey (ECS), in 2012/13 in addition to employing the stochastic frontier analysis (SFA) to assess the production frontier and factors behind the technical inefficiency to arrive at policy recommendations.FindingsThe study found that the efficiency level varied across subindustries with an average of 72.51% in full potential production. Out of the five classified groups, Sub4 (chemical and plastic) was found to be the most efficient manufacturer, while the rest in order are Sub1 (food and beverage), Sub5 (furniture and others), Sub2 (garment and textile), and Sub3 (paper and printing), providing the evidence to improve the technical efficiency. This study discovered that the firm's size, accounting system and credit access are crucial to enhancing the production efficiency of all sampling firms. However, these factors might be subject to specific industries.Practical implicationsFor the implication to the business community and policymakers, the findings of this study could be a reference in terms of which areas they should concentrate on to improve the technical efficiency as a part of productivity in the manufacturing industry. For instance, it suggests that firms could improve their production efficiency by introducing the accounting system, laborers' skills (education of managers) and engaging in international trade activities. Additionally, it asks policymakers to help private firms by improving the infrastructure, credit access, training and trade facilitation.Originality/valueIt is believed that, as the major contribution in Lao literature, this study is the first research applying the largest data from the national survey – the Lao ECS – examining the technical efficiency in the manufacturing sector in the country, and overcoming the gap of the previous research which recruited few policy variables and applied a small sample size in one specific industry. Therefore, the findings of this study impart more insights into the analysis, providing more effective and credible recommendations to policymakers and firms to improve their technical efficiency and, consequently, their competitiveness.

scholarly journals The Determinants of Telehealth Provision: Empirical Evidence from OECD Countries

2021 ◽  
Vol 18 (16) ◽  
pp. 8288
Author(s):  
Fuhmei Wang ◽  
Jung-Der Wang
Keyword(s):  
Health Services ◽  
Health Spending ◽  
Well Being ◽  
Oecd Countries ◽  
Outcome Variable ◽  
Explanatory Variables ◽  
Telehealth Service ◽  
Increase Productivity ◽  
Number Of Individuals ◽  
Health And Well Being

Health services provided through the telecommunications system aim to improve the population’s health and well-being. This research aims to explore what digital, economic, and health factors are associated with the provision of telehealth services, especially in ageing communities. Applying Organization for Economic Cooperation and Development (OECD) countries’ experiences, this research tries to construct a logistic regression model between adopting a telehealth system or not, a binary outcome variable, and a group of potentially explanatory variables. Estimation results showed that there were thresholds for telehealth provision: The demand for telehealth service usually began when the provision of telecommunication accessibility reached 50%, the proportion of elders exceeded 10%, or the proportion of health spending occupied more than 3–5% of the gross domestic product (GDP); the slope of each variable seemed to correspond with an increase in demand for such a provision. A growing number of individuals in OECD countries are now readily served by telehealth systems under the COVID-19 pandemic. These findings could be regarded as a model for other countries for implementing the necessary infrastructure early on when any of these parameters reaches its threshold. Moreover, telehealth applied in developing countries could be elevated for wider populations to access basic health services and for the remote delivery of health care. A rational decision could be made to appropriately use additional resources in telehealth provision. With accessible e-health services, the population’s health could be improved, which in turn would possibly increase productivity and social welfare.

Comparison of the reluctance laminated and solid rotor synchronous machine operating at high temperatures

2019 ◽  
Vol 38 (4) ◽  
pp. 1111-1119 ◽  
Author(s):  
Marcin Lefik ◽  
Krzysztof Komeza ◽  
Ewa Napieralska-Juszczak ◽  
Daniel Roger ◽  
Piotr Andrzej Napieralski
Keyword(s):  
High Speed ◽  
Design Methodology ◽  
Three Dimensional ◽  
Synchronous Machine ◽  
Point Of View ◽  
Heat Sources ◽  
Model Calculations ◽  
Content Type ◽  
Thermal Phenomenon ◽  
Practical Implications

Purpose The purpose of this paper is to present a comparison between reluctance synchronous machine-enabling work at high internal temperature (HT° machine) with laminated and solid rotor. Design/methodology/approach To obtain heat sources for the thermal model, calculations of the electromagnetic field were made using the Opera 3D program including effect of rotation and the resulting eddy current losses. To analyse the thermal phenomenon, the 3D coupled thermal-fluid (CFD) model is used. Findings The presented results show clearly that laminated construction is much better from a point of view of efficiency and temperature. However, solid construction can be interesting for high speed machines due to their mechanical robustness. Research limitations/implications The main problem, despite the use of parallel calculations, is the long calculation time. Practical implications The obtained simulation and experimental results show the possibility of building a machine operating at a much higher ambient temperature than it was previously produced for example in the vicinity of the aircraft turbines. Originality/value The paper presents the application of fully three-dimensional coupled electromagnetic and thermal analysis of new machine constructions designed for elevated temperature.

The drivers of corporate governance disclosure: the case of Nifty 500 Index

2018 ◽  
Vol 60 (2) ◽  
pp. 681-700 ◽  
Author(s):  
Androniki Katarachia ◽  
Electra Pitoska ◽  
Grigoris Giannarakis ◽  
Elpida Poutoglidou
Keyword(s):  
Corporate Governance ◽  
Financial Leverage ◽  
Policy Makers ◽  
Content Type ◽  
Explanatory Variables ◽  
Size Number ◽  
Governance Practices ◽  
Board Director ◽  
First Time ◽  
Governance Disclosure

Purpose Based on agency theory, the purpose of this paper is to investigate the determinants on the dissemination level of corporate governance disclosure (CGD). Design/methodology/approach The sample of the study incorporates listed companies in Nifty 500 Index for the period 2009-2014. The Governance Disclosure Score calculated by Bloomberg is used as a proxy for the dissemination level of corporate governance information. In total, eight explanatory variables are uses, namely, board’s size, number of board meetings, CEO duality, presence of women on the board, company’s size, financial performance, Tobin’s Q ratio and financial leverage. Findings The results of study suggest a need for improvement in CGDs by Indian companies, as they fail to comply the majority of the proposed disclosure items. Furthermore, it is revealed that the number of board director, the value of company, the financial leverage and the presence of women affect negatively the dissemination level of corporate governance information. While, the size of company is the only determinant that positively affects the extent of CGD. Practical implications The results are valuable because they reveal the attributes that determines which companies needs less or extra monitoring by shareholders and investors regarding the applied corporate governance practices. In addition, the study can be valuable to policy makers responsible for the regulation of company’s accountability in relation to corporate governance practices. Originality/value The study extents previous studies by incorporating for the first time Bloomberg’s rating approach regarding the dissemination level of CGD in Indian context.

Journey towards best practices in acting on early warning signs in complex projects within a Russian context

2015 ◽  
Vol 8 (4) ◽  
pp. 828-843 ◽  
Author(s):  
Gulnara Sharaborova ◽  
Derek H.T. Walker ◽  
Guinevere Gilbert
Keyword(s):  
Early Warning ◽  
Point Of View ◽  
Warning Signs ◽  
Theory And Practice ◽  
Doctoral Study ◽  
Content Type ◽  
Early Warning Signs ◽  
Complex Projects ◽  
Research Findings ◽  
Phd Thesis

Purpose – The purpose of this paper is to provide a summary report and reflect on a recently passed PhD thesis (Sharaborova, 2014b) related to project management topics. Design/methodology/approach – This paper focussed on narrative reflection upon the completed doctoral journey. Findings – This paper presents the thesis findings, the research models, the guide in dealing with the early warning signs that developed as a result of this research and the contribution made to theory and practice. Research limitations/implications – Limitations of the research and the perspectives of the further diffusion of the research findings are considered. Originality/value – This TRN is a PhD candidate’s point of view as well as the opinions of the scientific research supervisors about the doctoral study and its outcome. The paper could be useful for novice researchers who wish to conduct their research and did not yet make a decision.

Economic thought in the 17th and 18th centuries: a linguistic approach

2015 ◽  
Vol 23 (3) ◽  
pp. 260-270
Author(s):  
Iara Vigo de Lima
Keyword(s):  
Economic Thought ◽  
Point Of View ◽  
Content Type ◽  
Front Position ◽  
History Of ◽  
Epistemological Model ◽  
Theory Of Language ◽  
Theory Of Value ◽  
Linguistic Approach ◽  
Practical Implications

Purpose – The purpose of this paper is to analyse Michel Foucault’s new epistemological model regarding an analogy between the theory of language and economic thought in the seventeenth and eighteenth centuries. Design/methodology/approach – Through the scrutiny of language, Foucault intended to demonstrate that some analogies, among different branches of knowledge (interdiscursive practice), allow us to apprehend the underlying configuration of thought regarding ontological and epistemological conditions that have historically determined knowledge. He draws a parallel between four theoretical segments borrowed from general grammar (Attribution, Articulation, Designation and Derivation) and economic thought on wealth. Findings – One of the most remarkable propositions of this approach is that the theory of language and economic thought were epistemologically isomorphic in that context. What the theory of language stated in relation to “attribution” and “articulation” corresponded to the “theory of value” in economic thought. What grammar investigated regarding “designation” and “derivation” was analogous to the “theory of money and trade” in economic thought. The relationships that were – directly and diagonally – identified between and among them led to the conclusion that there was ‘a circular and surface causality’ in economic thought insofar as “circulation” preceded “production”. It was “superficial” because it could not find an explanation for the cause of “wealth”, which was only possible when “production” was placed in the front position of theories. Practical implications – Such an epistemological point of view can inspire other studies in the history of economic thought. Originality/value – This paper offers a perspective on how to think about the history of ontological and epistemological conditions of economic thought.

The moderating impact of emotions on customer equity drivers and loyalty intentions

2017 ◽  
Vol 29 (2) ◽  
pp. 239-264 ◽  
Author(s):  
Zohaib Razzaq ◽  
Salman Yousaf ◽  
Zhao Hong
Keyword(s):  
Service Delivery ◽  
Customer Service ◽  
Customer Loyalty ◽  
Positive Emotions ◽  
Survey Design ◽  
Emotional Responses ◽  
Point Of View ◽  
Customer Equity ◽  
Content Type ◽  
Loyalty Intentions

Purpose The purpose of this paper is to investigate the significant contribution of emotions along with other conventional loyalty drivers on the loyalty intentions. Design/methodology/approach The influence of three conventional loyalty drivers, i.e., value equity, brand equity, relationship equity on loyalty intentions was investigated by further exploring the moderating effects of negative and positive emotions. A sample of 834 Pakistani consumers in the supermarkets and banking industries was studied employing store-intercept survey design. Findings Consumer behavior is driven by emotions in both the supermarkets and banking context. Thus, in order to better predict customer loyalty intentions, the emotional component is crucial and should be included along with other cognitive components. Practical implications Since customers’ emotional responses throughout service delivery are strongly linked to loyalty, therefore supermarkets and bank service managers need to make sure that the customers experience with their services as pleasurable as possible and for this purpose, customer service employees need to be trained in order to better understand the customers’ emotional responses during the course of service delivery process. Originality/value The present study complements the existing literature regarding the role of emotions in service settings and offers a new point of view for the linkage among emotions, customer equity drivers and customer loyalty intentions.

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