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An exploratory study on contextual variables and manufacturing efficiency

Author

Listed:
  • Roberto Sarmiento
  • Mike Byrne
  • Jo Beale
  • Graeme Knowles

Abstract

This paper explores the potential impact of a group of contextual variables on manufacturing efficiency in a sample of 48 UK firms. Several Data Envelopment Analysis (DEA) models, which include manufacturing performance measures as inputs and outputs, are examined with regards to their association with variables such as labour turnover, firm size, production technology and others. By means of correlation analysis, it is observed that the variable 'labour turnover' is significantly, negatively and validly associated with higher levels of manufacturing efficiency in some of the models included in the investigation. The implications of these results are discussed and recommendations for future studies are proposed.

Suggested Citation

  • Roberto Sarmiento & Mike Byrne & Jo Beale & Graeme Knowles, 2009. "An exploratory study on contextual variables and manufacturing efficiency," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 5(3), pages 275-298.
    • Handle: RePEc:ids:ijsoma:v:5:y:2009:i:3:p:275-298
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