Abstract
Trends of allocative effi ciency and covariate of fi rm size and effi ciency of quality management(QM) factors in the Serbian industry were tested on the unbalanced panel sample of 48 industrial fi rms from 12 industrial sectors in the period 2004-2009. The obtained results show that 10 of 12 sectors have a positive covariate of participation in the output market and multi-factor productivity. Covariates of fi rm size and effi ciency of all QM factors record the same direction in the chemicals sector (positive) and motor vehicles (negative), which means that in those two sectors larger companies had above-average and/or below-average effi cient TQM. The same (positive) trend of allocative effi ciency and covariates of all QM factors was recorded in manufacture of chemical industry.
Highlights
The more recent literature brings a limited number of studies which analyse the relationship between firm performances and quality management. [01], [05], [12]
Dr Vesna Spasojević-Brkić - Allocative efficiency and QM factors covariate in Serbian industry where represents aggregate productivity in industry (j) in time (t), is market share of plant (i), in industry (j) in time (t), firm level productivity and N represents a number of firms in the sector (j)
The chemical industry’s predominant use of batch manufacturing processes is in sharp contrast to the use of assembly line production in automotive or computer industries, so it can be expected that these differences influence the relationship between QM implementation [6]
Summary
The more recent literature brings a limited number of studies which analyse the relationship between firm performances and quality management. [01], [05], [12]. Reallocation of resources significantly influences the level of aggregate productivity of industry from less productive to more productive firms. In this type of studies, aggregate industry productivity is determined as weighted average of firm level total (multi-factor) productivity with market share in industry output as a weight. This method of defining productivity allows decomposition of industry productivity on average productivity and covariate part as sum of cross product of firm size and firm productivity. If the sum of cross product positive industry productivity is improved, the sector resources are allocated towards more productive firms and industry is allocative efficient
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