@article{6628eb6b30db46c6b47094542526f9b8,
title = "Productivity and capital investments: An empirical study of three manufacturing industries in India",
abstract = "Investments in the Indian manufacturing sector do not seem to match the rate of growth of sales. This study empirically determines factors explaining within-firm variation in investment growth in three industries-auto components, chemicals and electronics-using panel data from 2002 to 2006. The results show that common firm-specific factors and some industry-specific factors, explain variation in investments within firms. Capital productivity is a significant factor in auto components and chemicals while capital intensity is significant for chemicals and electronics. Labour productivity is significant only for the electronics industry. The results suggest that there is a need to manage productivity improvements from the growth point of view and not only for efficiency improvements.",
keywords = "Capital investments, Capital productivity, Labour productivity, Manufacturing firms, Panel data",
author = "Atanu Chaudhuri and Peter Koudal and Sridhar Seshadri",
note = "Funding Information: We gratefully acknowledge the support of Deloitte Research for financial support of this research. Sridhar Seshadri is thankful to the Indian School of Business, Hyderabad, for support during a large part of this project. We also thank the Indian School of Business for helping us access the data. We acknowledge the help of Kumar Chunduri of the Indian School of Business, Hyderabad, for processing the data. Ajit Kambil, Satish Raghavendran and Kumar Kandaswamy of Deloitte helped us shape the project and gave valuable feedback. We also thank the conference participants at the Production and Operations Management Society (POMS) Conference, Dallas, TX, 2007, and seminar participants at Deloitte Research for their comments and feedback. We thank the editor and associate editors and an anonymous reviewer of IIMB Management Review for their valuable suggestions. An abbreviated version of this paper appeared in the April–May, 2008 issue of the Sensex Magazine, the Bombay Stock Exchange{\textquoteright}s premier bimonthly publication. This research was partially supported by the US National Science Foundation Grant DMI- 0800628 : Collaborative Research on Risk Management in Supply Chains Using Market Information. ",
year = "2010",
month = sep,
doi = "10.1016/j.iimb.2010.04.012",
language = "English (US)",
volume = "22",
pages = "65--79",
journal = "IIMB Management Review",
issn = "0970-3896",
publisher = "Elsevier Limited",
number = "3",
}