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Article
Publication date: 7 August 2017

Mini Kundi and Seema Sharma

The purpose of this paper is to evaluate the efficiency of aluminium firms in India.

Abstract

Purpose

The purpose of this paper is to evaluate the efficiency of aluminium firms in India.

Design/methodology/approach

Different data envelopment analysis (DEA) models have been employed to calculate the various efficiency scores of aluminium firms in India.

Findings

The major findings of the DEA analysis suggest that 62 per cent firms are found to be technically efficient. Overall, the industry shows good performance with mean technical efficiency levels of 0.936 and 0.911 for VRS and CRS frameworks, respectively. Further, five firms show decreasing returns to scale, signifying the overutilization of plant capacities. Six firms exhibit increasing returns to scale implying underutilization of plants. The results show that domestic firms are more efficient than the foreign firms, young firms are more efficient than young firms and small- and medium-scale firms are more efficient than large-scale firms.

Practical implications

The results of this study would help the aluminium firms to formulate an appropriate strategy to cautiously use their resources to increase their efficiency levels.

Originality/value

To the best of authors’ knowledge, no earlier studies seem to have ranked the aluminium firms based on their super-efficiency scores. Further, no previous studies seem to have examined the efficiency differences among aluminium firms across different size, age and ownership groups.

Details

Benchmarking: An International Journal, vol. 24 no. 6
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 10 October 2016

Seema Sharma and Elizabeth Mary Daniel

The purpose of this paper is to adopt an institutional theory perspective to investigate the adoption of enterprise resource planning (ERP) systems by medium-sized firms…

Abstract

Purpose

The purpose of this paper is to adopt an institutional theory perspective to investigate the adoption of enterprise resource planning (ERP) systems by medium-sized firms in India. The rationale for this study is to provide a more complete understanding of ERP adoption, moving beyond the traditional technical and economic perspectives to include social, cultural and structural influences. These later influences are more implicit, insidious and pervasive and hence require elucidatory studies such as this, but offer a greater understanding of the adoption of information systems (IS).

Design/methodology/approach

The study is undertaken by means of nine case studies of medium-sized firms in India that have adopted ERP systems. Qualitative interviews were undertaken with a range of staff in each firm and are supplemented by data from other sources such as site visit notes.

Findings

Institutionally based studies have tended to focus on three high-level isomorphic pressures: coercive, normative and mimetic. The study identifies number of more detailed factors that contribute to each of these three pressures. These more detailed factors are then used to consider how factors can interact and how they can explain aspects of the Indian context of the study.

Originality/value

The conceptual contribution of this study is to move beyond the technical and economic rationales frequently identified for the adoption of IS by identifying influences that are social, cultural and structural in nature. The study shows that the three high-level isomorphic pressures, mimetic, coercive and normative are comprised of more detailed factors. The empirical contribution of the paper is to identify these detailed factors, and to explore their influence, in the case of ERP adoption by Indian medium-sized firms. The study is of value to practitioners, since it is at the detailed level of factors that managers can recognize the forces they are subject to and can take action. It is also valuable to researchers since the detailed factors help address two limitations of institutional theory; a lack of agency perspective and a degree of conceptual ambiguity.

Details

Journal of Enterprise Information Management, vol. 29 no. 6
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 5 October 2021

Navendu Prakash, Shveta Singh and Seema Sharma

Against the backdrop of an Indian banking sector that finds itself entangled in the triple deadlock of increasing competition, technological changes and strict regulatory…

Abstract

Purpose

Against the backdrop of an Indian banking sector that finds itself entangled in the triple deadlock of increasing competition, technological changes and strict regulatory compliance, the study aims to examine the need for reinforcing stringent corporate and risk governance mechanisms as an instrument for improving efficiency and productivity levels.

Design/methodology/approach

The authors construct three separate indices, namely, supervisory board index, audit index and risk governance index to measure the governance practices of commercial banks. A slacks-based data envelopment analysis technical efficiency (TE) measure, a variable returns to scale cost efficiency model and Malmquist productivity index are employed to determine TE, cost efficiency and productivity change, respectively. A two-step system-generalized method of moments estimation accounts for the dynamic relationship between governance and efficiency.

Findings

The authors show that strict audit and risk governance mechanisms are associated with better efficiency and productivity levels. However, consistent with the free-rider hypothesis, large, independent and diverse boards lead to cost inefficiencies. Strict risk governance structures circumvent the negative effects of high regulatory capital and improve efficiency and total factor productivity. However, friendly boards do not perform efficiently in the presence of regulatory capital, implying that incentives arising from maintaining high levels of equity capital make them more susceptible to risk-taking, and board composition is unable to sidestep this behaviour.

Originality/value

The paper contributes to the literature that explores the linkages between governance, efficiency and productivity. The inferences hold relevance in the post-COVID world, as regulators try to circumvent the additional stress on the banking system by adopting sound corporate and risk governance mechanisms.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 7 October 2021

Navendu Prakash, Shveta Singh and Seema Sharma

This paper empirically examines the short-term and long-term associations between risk, capital and efficiency (R-C-E) in the Indian banking sector across 2008–2019 to…

Abstract

Purpose

This paper empirically examines the short-term and long-term associations between risk, capital and efficiency (R-C-E) in the Indian banking sector across 2008–2019 to answer the presence of causation or contemporaneousness in the R-C-E nexus.

Design/methodology/approach

The paper focuses on three objectives. First, the authors determine short-term causality in the risk–efficiency relationship by studying the simultaneous influence of a wide array of banking risks on DEA-based technical and cost efficiency in static and dynamic situations. Second, the authors introduce bank capital and contemporaneously determine the interplay between R-C-E using seemingly unrelated regression equation (SURE) and three-staged least squares (3SLS). Last, the authors assess stability in inter-temporal associations using Granger causality in an autoregressive distributed lag (ARDL) generalized method of moments (GMM) framework.

Findings

The authors contend that high capital buffers reduce insolvency risk and increase bank stability. Technically efficient banks carry lesser equity buffers, suggesting a trade-off between capital and efficiency. However, capitalization makes banks more technically efficient but not cost-efficient, implying that over-capitalization creates cost inefficiencies, which, in line with the cost skimping hypothesis, forces banks to undertake risk. Concerning causal relationships, the authors conclude that inefficiency Granger-causes insolvency and increases bank risk. Further, steady increases in capital precede technical and cost efficiency improvements. The converse also holds as more efficient banks depict temporal increases in capitalization levels.

Originality/value

The paper is perhaps the first that acknowledges the influence of the “time” perspective on the R-C-E nexus in an emerging economy and advocates that prudential regulations must focus on short-term and long-term intricacies among the triumvirate to foster a stable banking environment.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 16 February 2021

Navendu Prakash, Shveta Singh and Seema Sharma

The purpose of this study is to explore and evaluate potential nonmonotonicity in the determinants of profit efficiency, specifically IT and R&D investments in the Indian…

Abstract

Purpose

The purpose of this study is to explore and evaluate potential nonmonotonicity in the determinants of profit efficiency, specifically IT and R&D investments in the Indian commercial banking sector.

Design/methodology/approach

The study employs an alternative stochastic profit efficiency framework and introduces nonmonotonic effects by parameterizing the location and scale parameters of the inefficiency component on an unbalanced panel data set of 72 commercial banks in the 2008–2019 period. Marginal effects across quartiles are calculated using a bias-corrected and accelerated bootstrap procedure of 500 simulations. The study disaggregates across ownership and size for gauging the impact of structure on the associations between determinants of profit efficiency.

Findings

The study partially rejects the productivity paradox as it discovers a negative association of IT and R&D with profit inefficiency. However, the observed nonmonotonicity of IT is of significance for bank managers, as the study concludes that overinvestment in IT is detrimental to a bank’s profit-maximizing interests. Further, bank size, loan default and credit risk depict a nonmonotonic relationship across the sample with large banks, high NPAs and high credit risk associated with reducing profit efficiency. In addition, higher margins and greater diversification are related positively to efficiency, and banks with cost-heavy structures or having high liquidity risk associated negatively with efficiency.

Originality/value

To the best knowledge of the authors, the study is perhaps the first to acknowledge and incorporate nonmonotonic associations of IT investments amidst other exogenous determinants under a stochastic profit efficiency framework.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 8 July 2021

Prashant Kumar Gupta and Seema Sharma

The authors present a systematic literature review on microfinance institutions’ (MFIs) effect on poverty and how they can ensure their sustainability. The purpose of this…

Abstract

Purpose

The authors present a systematic literature review on microfinance institutions’ (MFIs) effect on poverty and how they can ensure their sustainability. The purpose of this article is to review the effect of MFIs on poverty in South Asian countries. The analysis and review of the selected corpus of literature also provide avenues for future research.

Design/methodology/approach

A total of 95 papers from 49 journals in 4 academic libraries and publishers were systematically studied and classified. The authors define the keywords and the inclusion/exclusion criteria for the identification of papers. The review includes an analysis of the selected papers that give insights about publications with respect to themes, number of themes covered in individual publications, nations, scope, methodology, number of methods used and publication trend.

Findings

The literature indicates the positive effect of microfinance on poverty but with a varying degree on various categories of poor. The relation between poverty and microfinance is, however, dependent on the nation under the scanner. While sustainability and outreach co-exist, their trade-off is still a matter of debate.

Originality/value

This is the first systematic literature review on MFIs’ effect on poverty in South Asian nations. Additionally, the authors discuss the literature on the trade-off between sustainability and outreach for MFIs.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 16 November 2015

Dhwani Gambhir and Seema Sharma

This paper aims to study whether exporting enterprises are more productive in export-intensive industries. It also aims to identify the action area and policy direction…

Abstract

Purpose

This paper aims to study whether exporting enterprises are more productive in export-intensive industries. It also aims to identify the action area and policy direction for enhancing productivity in Indian textile manufacturing. Global integration has increased the volume of international trade. It is crucial for countries to have competitive enterprises to capture a larger share of the global economy. Improvement in productivity performance not only enhances competitiveness but also promotes growth in an economy.

Design/methodology/approach

A productivity analysis for the Indian textile manufacturing industry using firm-level panel data is conducted. The data are collected for 160 firms relevant to the period from 2007-2008 to 2012-2013 from Ace Equity database. Using the technique of data envelopment analysis, the output oriented Malmquist productivity index is computed and the sources of productivity change are identified. Also, a comparison between the productivity performance of the exporting and non-exporting firms has been made.

Findings

The results suggest that exporting firms are exhibiting better productivity performance and resource utilisation during the study period. Technology change and scale efficiency seem to be the major sources of productivity gain for exporting firms.

Research limitations/implications

The research is limited to a single industry, reference database and methodology. There is scope for further in-depth, micro-level research to analyze the differences in drivers of productivity for exporting and non-exporting firms.

Originality/value

This paper provides validation to export promotional policies in the Indian textile industry by establishing better productivity performance of exporting firms. It also provides direction for managerial action by identifying efficiency component as the factor pulling down productivity.

Details

Measuring Business Excellence, vol. 19 no. 4
Type: Research Article
ISSN: 1368-3047

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Article
Publication date: 16 November 2015

Dhwani Gambhir and Seema Sharma

Productivity gain in the manufacturing sector draws immense significance for all developing countries, particularly due to its contribution in enhancing competitiveness…

Abstract

Purpose

Productivity gain in the manufacturing sector draws immense significance for all developing countries, particularly due to its contribution in enhancing competitiveness and promoting economic growth in the long run. The purpose of this paper is to study the sources of productivity gain for large and small-scale manufacturing firms.

Design/methodology/approach

This paper studies productivity performance of Indian textile manufacturing industry using firm-level panel data of 160 companies for the period 2007-2008 to 2012-2013. The output-oriented Malmquist productivity index has been computed through data envelopment analysis. Further, the sources of productivity gain are identified for the entire textile industry as well as for the small and large-scale sector companies separately.

Findings

Regarding the sources of productivity gain, technology change and scale efficiency seem to be the major drivers. Pure efficiency change is a concern for all firms irrespective of scale. The results suggest that moderately large companies are exhibiting better productivity performance during the study period.

Research limitations/implications

The research is limited to a single industry, reference database and methodology. There is scope for further research at the micro-level to analyse the drivers of productivity for enterprises operating at different scales.

Originality/value

The paper contributes to existing literature by identifying the core action area for improving productivity performance in Indian textile manufacturing as the pure efficiency component. It also adds to research on the most productive scale of operation in manufacturing.

Details

Journal of Economic and Administrative Sciences, vol. 31 no. 2
Type: Research Article
ISSN: 1026-4116

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Article
Publication date: 11 March 2016

Mini Kundi and Seema Sharma

The purpose of the present study is to evaluate the efficiency of glass firms in India.

Abstract

Purpose

The purpose of the present study is to evaluate the efficiency of glass firms in India.

Design/methodology/approach

Data envelopment analysis (DEA) has been employed to study the technical, scale and super efficiency measures of glass firms in India.

Findings

Major findings of DEA analysis show that 65 percent firms are found to be technically efficient. Returns to scale analysis indicate that five firms are operating at decreasing returns to scale and two firms are exhibiting increasing returns to scale. Further, results show that small– and medium–scale firms are more efficient than large–scale firms. Old firms are more efficient compared to the young firms and foreign-owned firms are technically more efficient compared to the domestic firms.

Practical implications

The results of this study would help the managers to assess their relative efficiency and take corrective measures to efficiently use their resources.

Originality/value

This seems to be the first study to apply DEA to analyze the efficiency of glass firms in India. No previous study on glass industry seems to have decomposed the measure of overall technical efficiency into its components, namely pure technical efficiency and scale efficiency and no study seems to have examined whether ownership, age and size of a firm are significant for its efficiency. In addition, no earlier study seems to have ranked the glass firms based on their efficiency values. Further, target values of inputs and outputs are demonstrated in this study. Stability of efficiency scores is also checked.

Details

Journal of Advances in Management Research, vol. 13 no. 1
Type: Research Article
ISSN: 0972-7981

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Article
Publication date: 1 June 2010

Seema Sharma and Milind Sharma

The purpose of this paper is to examine the relative production efficiency of state‐wise clusters in the registered small‐scale sector in India.

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Abstract

Purpose

The purpose of this paper is to examine the relative production efficiency of state‐wise clusters in the registered small‐scale sector in India.

Design/methodology/approach

For this, data envelopment analysis under the assumption of variable returns to scale is used. Using BCC model, technical and scale efficiencies for 23 states and three union territories are estimated.

Findings

Seven states namely, Delhi, Meghalaya, Uttranchal, Haryana, Punjab, Andaman and Nicobar and Tamilnadu are found to be technically efficient whereas Delhi and Meghalaya came out to be the only scale efficient states. Most of the states are found to be operating at decreasing returns to scale, which signifies the scope for investment and further employment generation.

Practical implications

Since the results indicate massive scope for expansion and employment generation in small industries in India, therefore, policy makers can use it as a tool to achieve the goal of inclusive and sustainable growth.

Originality/value

Originality lies in providing, for the first time, an inter state technical and scale efficiency analysis for small scale industries in India which in turn reflects the performance efficiency of the state level policies for the small scale industries.

Details

Measuring Business Excellence, vol. 14 no. 2
Type: Research Article
ISSN: 1368-3047

Keywords

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