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.
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.
This teaching case narrates the entrepreneurial journey of Meena Bindra, the founder of the Indian apparel retail brand (BIBA), from 1983 to 2014. Her enterprise achieved incredible growth and has developed a magnificent vision for the future. The case describes the entrepreneurial outlook and decisions that helped tap opportunities and achieve rapid growth amidst the changing business environment. Her success story breaks many myths related to small start-ups by women entrepreneurs and highlights the immense potential and economic contributions by women. It serves as an example and provides support to the call for the active promotion of women’s economic empowerment. The case is based on both primary and secondary data.
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