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Non-parametric analysis of technical efficiency: factors affecting efficiency of handloom industry of Sirajganj district

Author

Listed:
  • Md Awal Al Kabir

    (Jahangirnagar University)

  • Abu Rashed Osman

    (Sohar University)

  • Shah Mohammad Mazeedul Hoque

    (Healthcare World Online)

  • Jeremy Brown

    (Sohar University)

  • Shah Md Safiul Hoque

    (Sohar University)

Abstract

The purpose of this study was to determine the technical efficiency of the handloom sector of Bangladesh, along with the factors affecting the technical efficiency by employing the data envelopment technique. This study used a random sample of 314 handloom entrepreneurs from the district of Sirajganj, Bangladesh. The results revealed that only 45% of handloom firms were technically efficient, implying growth potential. Moreover, bootstrap truncated regression reveals that entrepreneur-specific factors (such as education, training, gender, and working experience), as well as firm-specific factors including (advanced technology, ICT, location, labor productivity, female labor ratio, and capital-labor ratio, government support), has a significant influence on technical efficiency of the handloom microenterprises of Sirajganj. The study recommends enhancing the personal development of handloom entrepreneurs through training, education, and ICT integration. Additionally, it suggests that development organizations provide supportive measures such as education access and low-cost loans to facilitate technology adoption and modernization.

Suggested Citation

  • Md Awal Al Kabir & Abu Rashed Osman & Shah Mohammad Mazeedul Hoque & Jeremy Brown & Shah Md Safiul Hoque, 2025. "Non-parametric analysis of technical efficiency: factors affecting efficiency of handloom industry of Sirajganj district," SN Business & Economics, Springer, vol. 5(5), pages 1-20, May.
    • Handle: RePEc:spr:snbeco:v:5:y:2025:i:5:d:10.1007_s43546-025-00812-z
    DOI: 10.1007/s43546-025-00812-z
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