Comparative Organizational Characteristics of Indian State-Owned Enterprises

Comparative Organizational Characteristics of Indian State-Owned Enterprises This article evaluates the organizational characteristics, defined as returns to scale and most productive scale size, for a sample of 67 Indian state-owned enterprises in comparison with 63 private and 27 foreign-owned enterprises. State-owned units suffer from decreasing returns to scale with diseconomies being associated with their large size. The average most productive scale size of the state-owned firms is considerably smaller than average actual size, establishing the need for a break-up of existing units into many smaller units so as to gain efficiencies. A policy of restructuring these organizations before privatization will enable privatization to be eventually more successful. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Comparative Organizational Characteristics of Indian State-Owned Enterprises

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007710527768
Publisher site
See Article on Publisher Site

Abstract

This article evaluates the organizational characteristics, defined as returns to scale and most productive scale size, for a sample of 67 Indian state-owned enterprises in comparison with 63 private and 27 foreign-owned enterprises. State-owned units suffer from decreasing returns to scale with diseconomies being associated with their large size. The average most productive scale size of the state-owned firms is considerably smaller than average actual size, establishing the need for a break-up of existing units into many smaller units so as to gain efficiencies. A policy of restructuring these organizations before privatization will enable privatization to be eventually more successful.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 15, 2004

References

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