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Structure, Firm Size and Technical Efficiency: Some Observations on Indian Industry

Patibandla Murali

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: The empirical results of this paper, for a sample of firms belonging to a light Indian engineering industry, show that very small and large firms are relatively technically inefficient in production. The larger size group of small firms appears to realize the highest level of technical efficiency. This is explained on the basis of organizational behavior of large and small firms as a response mechanism to the product and factor market structure conditions.

Date: 1994-07-01
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