IDEAS home Printed from https://ideas.repec.org/a/bjx/jomwor/v2022y2022ip124-133id226.html
   My bibliography  Save this article

Determinants of Efficiency in Manufacturing Firms: The Guide for Developing Countries

Author

Listed:
  • Moshiur Rahaman
  • Ferozur Talukder

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.

Suggested Citation

  • Moshiur Rahaman & Ferozur Talukder, 2022. "Determinants of Efficiency in Manufacturing Firms: The Guide for Developing Countries," Journal of Management World, Academia Publishing Group, vol. 2022, pages 124-133.
    • Handle: RePEc:bjx:jomwor:v:2022:y:2022:i::p:124-133:id:226
    as

    Download full text from publisher

    File URL: https://managementworld.online/index.php/mw/article/view/226/224
    Download Restriction: Access to full texts is restricted to Journal of Management World
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjx:jomwor:v:2022:y:2022:i::p:124-133:id:226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucía Aguado (email available below). General contact details of provider: https://managementworld.online/index.php/mw/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.