Title: Measuring and benchmarking the efficiency of the Indian automobile sector

Authors: Vanshika Dubey; Supran Kumar Sharma; Shallu Sehgal

Addresses: School of Business, Shri Mata Vaishno Devi University, Katra, J&K, India ' School of Business, Faculty of Management, Shri Mata Vaishno Devi University, Katra, J&K, India ' Department of Economics, University of Jammu, Jammu, J&K, India

Abstract: This paper seeks to analyse the performance of the Indian automobile industry through the diverse efficiency measure of data envelopment analysis. The study used the secondary firm level data with the objective to estimate technical efficiencies and its components of the selected firms and intention to identify the input and output targets for the enhancement of technical efficiency. The research tools used in the study are instrumental to assess the causes of bottlenecks, with the improvement of which, one can improve the technical efficiency. Different peers and peers' weights are also analysed. The study adopted a solution-based approach by framing profitability-efficiency matrix through which one can evaluate the behaviour of both the profitability and efficiency combinations of the firms. This study also offers to determine factors responsible for the inefficiency of the selected DMUs and suggests different measures with which optimum utilisation of resources and enhancement of the efficiency of the selected firms can be ensured.

Keywords: data envelopment analysis; DEA; firms; efficiency; profitability; automobile industry; slack and radial movement; decision-making unit; DMU; India; technical efficiency.

DOI: 10.1504/IJPQM.2021.120601

International Journal of Productivity and Quality Management, 2021 Vol.34 No.4, pp.510 - 538

Received: 01 Jun 2020
Accepted: 27 Jun 2020

Published online: 27 Jan 2022 *

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