Apparel Manufacturing Productivity in India: Characteristics of the Low, Medium and High Performers

Bheda, Rajesh; Narag, A.S.; Singla, M. L.

doi:10.1080/00405000108659607

Cited by 4 publications

(3 citation statements)

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“…Roy (2009) suggested that labour should be viewed as human capital requiring investments for the purpose of enhancing technical capabilities through training and for the purpose of raising wages. Further, Bheda, Singla, and Narag (2001) found that the garment factories which had invested in operator, supervisor and manager training were achieving higher productivity.…”

Section: Comparison Of Efficiency By Location and Scale-sizementioning

confidence: 99%

Technical efficiency and its determinants in the Indian garment industry

Joshi

Singh

2011

Journal of the Textile Institute

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One of the recommendations of the Textile Expert Committee, India, was to set a Technology Demonstration Centre to address the issues related to improvement in productivity and efficiency of the Indian garment industry. The committee identified the key factors responsible for the low level of production efficiency, which were low labour and capital productivities, high capital cost, outdated technology and low-skilled workers. In the light of subsequent recommendations made by the committee, the researchers examined the technical efficiency of the Indian garment industry. For this, a two-stage analytical process using cross-sectional data from 275 Indian garment firms spread across various states in India for the year 2004-2005 was adopted. In the first stage, data envelopment analysis was used to measure technical efficiency scores. Subsequently, in the second stage, Tobit regression was used to study the factors affecting the technical efficiency of the firms. The results of the study show that on an average, a garment firm could increase its output by 32.1% with the existing level of inputs by way of improving its input-use efficiency and adjusting plant size to the optimum level. Further, the overall technical efficiency scores were found to be more sensitive to the variation in the pure technical efficiency (PTE) scores than that in the scale efficiency scores. Lower PTE scores in all the states indicated the poor performance of the industry in converting inputs into output. The results of the study also showed that the micro-sized firms were more efficient in utilizing resources than the small and medium ones. The Tobit regression results confirmed that investment in plant and machinery and outstanding loans did have a negative impact on a firm's efficiency. By way of contrast, efficiency was found to be positively associated with labour productivity, wages per employee and labour-staff ratio.

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Section: Comparison Of Efficiency By Location and Scale-sizementioning

confidence: 99%

Technical efficiency and its determinants in the Indian garment industry

Joshi

Singh

2011

Journal of the Textile Institute

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“…Tobit model has been used widely for identifying determinants of efficiency and is the selected model for analysis (Joshi & Singh, 2012). Disaggregate analysis compares performance of subgroups based on certain categorical firm-level attributes (Bheda et al, 2001; Chapelle & Plane, 2005; Kundi & Sharma, 2015).…”

Section: Empirical Frameworkmentioning

confidence: 99%

“…Most Indian firms are operating with excess production capacity and need to improve resource and capacity utilization to boost competitiveness (Hashim, 2005; Joshi & Singh, 2012). There is a lot of variation in interfirm performance and gains can be materialized by leveraging the correct factors (Bheda et al, 2001; Hill & Kalirajan, 1993, Kapelko & Lansink, 2014).…”

Section: Introductionmentioning

confidence: 99%

Major Apparel Exporting Countries in Asia: A Study of Technical Efficiency and Its Determinants

Gambhir

2023

Jindal Journal of Business Research

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Asia has many significant players in the global apparel market, contributing more than half of the apparel output. There is stiff competition between eight countries within the region to capture the market share—China, Bangladesh, India, Pakistan, Sri Lanka, Vietnam, Cambodia and Indonesia. Using raw data from the World Bank Enterprise Surveys, a two-stage analysis was conducted for each country—in the first stage efficiency scores were computed using data envelopment analysis, and in the second stage factors influencing efficiency were identified using tobit regression and disaggregate comparison. The results revealed a poor efficiency performance across countries, but the drivers varied between them. It was observed that smaller firms performed better and there was a need to revamp quality certification and training modules to promote competitiveness.

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Managerial perceptions in Indian apparel manufacturing: a firm-level survey

Gambhir

Sharma

2022

JEAS

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PurposeThe 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/approachA 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.FindingsThe 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/implicationsThe paper is limited by the nature of the sampling method and sample size; perceptions should be explored without bias and with good judgement.Practical implicationsThe 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/valueTo 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.

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Apparel Manufacturing Productivity in India: Characteristics of the Low, Medium and High Performers

Cited by 4 publications

References 1 publication

Technical efficiency and its determinants in the Indian garment industry

Technical efficiency and its determinants in the Indian garment industry

Major Apparel Exporting Countries in Asia: A Study of Technical Efficiency and Its Determinants

Managerial perceptions in Indian apparel manufacturing: a firm-level survey

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