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Technical efficiency and its determinants of handloom micro-enterprises in the Indian state of Assam: a two-stage double-bootstrap DEA approach

Technical efficiency and its determinants of handloom micro-enterprises in the Indian state of... This paper aims to estimate the technical efficiency (TE) and its determinants in the handloom micro-enterprises of Assam (India) using the double-bootstrap data envelopment analysis (DEA) technique.Design/methodology/approachThe study uses a random sample of 340 handloom micro-entrepreneurs from the three districts of Assam in India. The double-bootstrap DEA was used to calculate the TE and its determinants.FindingsThe findings reveal that handloom enterprises are only 60% technically efficient, suggesting room for improvement. The bootstrap truncated regression results demonstrate that the handloom firms’ TE is influenced by both entrepreneur-specific and firm-specific factors.Practical implicationsThe implication lies in the fact that the management of a firm may figure out how much it can reduce its input utilization to produce the existing amount of output so that it can move along the TE ladder. Moreover, it can crosscheck the factors to weed out inefficiency.Originality/valueThis paper has made two significant contributions to the extant literature. Firstly, it fills the gap by way of accounting the TE of handloom micro-enterprises, which has so far been neglected. Secondly, it used the bootstrap approach, which otherwise is very rare in the discourse on the Indian manufacturing industry, let alone in the micro, small and medium scale enterprises sector. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Indian Growth and Development Review Emerald Publishing

Technical efficiency and its determinants of handloom micro-enterprises in the Indian state of Assam: a two-stage double-bootstrap DEA approach

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References (75)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1753-8254
eISSN
1753-8254
DOI
10.1108/igdr-08-2022-0094
Publisher site
See Article on Publisher Site

Abstract

This paper aims to estimate the technical efficiency (TE) and its determinants in the handloom micro-enterprises of Assam (India) using the double-bootstrap data envelopment analysis (DEA) technique.Design/methodology/approachThe study uses a random sample of 340 handloom micro-entrepreneurs from the three districts of Assam in India. The double-bootstrap DEA was used to calculate the TE and its determinants.FindingsThe findings reveal that handloom enterprises are only 60% technically efficient, suggesting room for improvement. The bootstrap truncated regression results demonstrate that the handloom firms’ TE is influenced by both entrepreneur-specific and firm-specific factors.Practical implicationsThe implication lies in the fact that the management of a firm may figure out how much it can reduce its input utilization to produce the existing amount of output so that it can move along the TE ladder. Moreover, it can crosscheck the factors to weed out inefficiency.Originality/valueThis paper has made two significant contributions to the extant literature. Firstly, it fills the gap by way of accounting the TE of handloom micro-enterprises, which has so far been neglected. Secondly, it used the bootstrap approach, which otherwise is very rare in the discourse on the Indian manufacturing industry, let alone in the micro, small and medium scale enterprises sector.

Journal

Indian Growth and Development ReviewEmerald Publishing

Published: Jul 24, 2023

Keywords: Technical efficiency; Data envelopment analysis (DEA); Bootstrap DEA; Handloom enterprise; Assam

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