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Do supervisory inputs matter in a capital-intensive industry? Some evidence from a Japanese car transplant

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Listed:
  • Murugappa Krishnan

    (University of Minnesota and Visitor, WZB, Berlin)

  • Ashok Srinivasan

    (Fuqua School of Business, Duke University, USA)

Abstract

We estimate a translog production function based on data from a Japanese automobile plant in the Midwest where output is determined by capital and different supervisory time inputs. We fit a model which allows for heteroskedastic errors, where this heteroskedasticity is a function of various variables affecting perceived target severity. We find that while, as expected, capital inputs are important, each supervisory time input is also significant in this capital-intensive industry. Linear homogeneity in these inputs is rejected. We find evidence of asymmetry in substitution among different components of supervisory time. This asymmetry has implications for the design and allocation of supervisory tasks. © 1997 John Wiley & Sons, Ltd.

Suggested Citation

  • Murugappa Krishnan & Ashok Srinivasan, 1997. "Do supervisory inputs matter in a capital-intensive industry? Some evidence from a Japanese car transplant," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 235-245.
    • Handle: RePEc:wly:mgtdec:v:18:y:1997:i:3:p:235-245
    DOI: 10.1002/(SICI)1099-1468(199705)18:3<235::AID-MDE808>3.0.CO;2-7
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    Cited by:

    1. Mahour Mellat Parast, 2021. "An assessment of the impact of corporate social responsibility on organizational quality performance: Empirical evidence from the petroleum industry," Operations Management Research, Springer, vol. 14(1), pages 138-151, June.
    2. W. David Allen, 2021. "Work Environment and Worker Performance: A View from the Goal Crease," Journal of Labor Research, Springer, vol. 42(3), pages 418-448, December.

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