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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

Keywords

Article
Publication date: 14 June 2022

Vinod Bhatia, Seema Sharma and Richa Bhatia

The purpose of the study is to provide insights into the process of decision making. Indian Railways as an organization has to use the available resources based on…

Abstract

Purpose

The purpose of the study is to provide insights into the process of decision making. Indian Railways as an organization has to use the available resources based on thorough analysis and proper application of available evaluation methodologies.

Design/methodology/approach

This study uses an integrated group discussion – analytical hierarchy process (AHP) to prioritize capital-intensive Indian Railways projects.

Findings

Through an email-based survey, six important criteria for ranking upcoming domestic freight corridors were selected, and weights for these criteria were calculated through AHP. The sensitivity analysis of the decision model suggests that the results of this study are significant, reliable and robust.

Originality/value

This study lays a foundation for the decision-makers of Indian Railways to consider a scientific approach while finalizing the big investment projects. This paper provides essential insights on prioritizing capital-intensive transport projects and is readily applicable to any case study.

Details

Measuring Business Excellence, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 29 March 2022

Dhwani Gambhir and Seema Sharma

The paper explores the managerial perceptions in Indian apparel manufacturing firms related to production performance, challenges faced, causes of low efficiency and the…

Abstract

Purpose

The paper explores the managerial perceptions in Indian apparel manufacturing firms related to production performance, challenges faced, causes of low efficiency and the government support needed.

Design/methodology/approach

A structured survey of Indian apparel manufacturing firms was undertaken in person and through the online mode; the questionnaire was designed to collect data on demographic profile of a firm using categorical questions and perceptions of its top managers using a five-point Likert scale.

Findings

The survey findings reveal that most apparel manufacturing firms believe that exporting promotes efficiency and adopt output orientation to production, which may not be suitable in a competitive and uncertain environment. Machines are not used much for value-addition and labour related issues are most pressing challenges. Government support is expected for several aspects such as power supply and skill development.

Research limitations/implications

The paper is limited by the nature of the sampling method and sample size; perceptions should be explored without bias and with good judgement.

Practical implications

The survey findings suggest that government policy should have a firm-specific approach to support improved production performance along with generic policies to build infrastructure and logistical facilities.

Originality/value

To the best of authors’ knowledge, there has been no such exercise to study managerial perceptions related to production performance in Indian apparel manufacturing in the past decade.

Details

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

Keywords

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

Keywords

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. 49 no. 7
Type: Research Article
ISSN: 0144-3585

Keywords

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. 48 no. 1
Type: Research Article
ISSN: 0307-4358

Keywords

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

Keywords

Article
Publication date: 14 March 2022

Prashant Kumar Gupta and Seema Sharma

This paper aims to identify specific corporate governance determinants of asset quality in the Indian banking system and suggest a future course of action for research in…

Abstract

Purpose

This paper aims to identify specific corporate governance determinants of asset quality in the Indian banking system and suggest a future course of action for research in the Indian banking industry. The results will guide other developing nations to handle poor asset quality in banks. Nations with economic interest in India can take cognisance from the results.

Design/methodology/approach

The authors identify the determinants of asset quality for the Indian banks using novel data from 2010 to 2019 through a dynamic panel data approach. The authors analyse 45 public and private sector banks using general method of moments.

Findings

The results indicate that intensity of board activities, board functioning and ownership concentration are significant determinants of asset quality. Furthermore, the study hypotheses on board independence and board size are rejected as they do not significantly impact the asset quality. The authors also call for further research on the qualitative aspects of gender diversity, board independence and special committee activity for better insights.

Originality/value

This is the first study to identify specific corporate governance determinants of asset quality for the Indian banking system using a dynamic panel data approach with data spanning over ten years from 45 banks. Unlike all other studies, the authors have used both bank-specific and macroeconomic variables as control variables, making the results accurate and reliable. The authors also recognise the persistent nature of asset quality.

Details

Journal of Advances in Management Research, vol. 19 no. 4
Type: Research Article
ISSN: 0972-7981

Keywords

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

Keywords

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

Keywords

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