Title: Performance analysis of Indian automobile sector using non-parametric approach

Authors: Supran Kumar Sharma; Dalip Raina

Addresses: School of Business Economics, College of Management, Shri Mata Vaishno Devi University, Katra, 182320, India ' School of Business Economics, College of Management, Shri Mata Vaishno Devi University, Katra, 182320, India

Abstract: In this study, the performance analysis of the Indian automobile industry is carried out through various efficiency measures using data envelopment analysis approach with the panel data on the representative sample. The analysis reveals that automobile firms are found to be technically inefficient over the period of study, demonstrating the potential saving through benchmarking the input targets. The study find evidences that inefficient firms are either operating at a scale that has been too large or too small therefore, representing the correctness of scale size and focusing to operate at the optimum frontier by making scale or radial movements. The study also unearths the need to focus on the determinants that are sources of inefficiencies for the firms in the Indian automobile industry.

Keywords: data envelopment analysis; DEA; efficiency; automobile industry; radial movements; slack movement; returns to scale; India; performance evaluation; automotive firms.

DOI: 10.1504/IJBEX.2013.056092

International Journal of Business Excellence, 2013 Vol.6 No.5, pp.505 - 525

Published online: 14 Aug 2013 *

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