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Global Journal of Flexible Systems Management
Published in: Global Journal of Flexible Systems Management 3/2015

01-09-2015 | Original Article

Efficiency Analysis and Flexibility: A Case Study of Cement Firms in India

Authors: Mini Kundi, Seema Sharma

Published in: Global Journal of Flexible Systems Management | Issue 3/2015

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Abstract

The present paper aims to study the efficiency and flexibility of cement firms in India. Different data envelopment analysis (DEA) models have been employed to assess the efficiency of cement industry in India. Major findings of the DEA analysis suggest that 43 % firms are found to be technically efficient. Overall, the industry shows good performance with a mean technical efficiency level of 0.885 (variable returns to scale model) and 0.859 (constant returns to scale model). The results relating to returns to scale indicate that 14 firms are experiencing increasing returns to scale, 12 firms are operating at decreasing returns to scale, and the remaining 21 firms are exhibiting constant returns to scale. Results show that foreign firms are technically more efficient than the domestic firms, and owing to the benefits of economies of scale, large-scale firms are more scale efficient than the small- and medium scale firms. The study highlights the importance of flexibility in the production processes of inefficient firms in order to bring their efficiency at par with efficient firms.
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Appendix
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Metadata
Title
Efficiency Analysis and Flexibility: A Case Study of Cement Firms in India
Authors
Mini Kundi
Seema Sharma
Publication date
01-09-2015
Publisher
Springer India
Published in
Global Journal of Flexible Systems Management / Issue 3/2015
Print ISSN: 0972-2696
Electronic ISSN: 0974-0198
DOI
https://doi.org/10.1007/s40171-015-0094-0

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