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Efficiency Ranking Of It Service-Producing Firms: Case Of Indian Multinationals, H. D. Vinod, P. M. Rao

International Review of Business and Economics

Production functions often study the output of physical products with capital and labor inputs. Instead, we use 2004 to 2016 data for 55 In- dian multinational companies to assess the production of services. Our estimates of flexible production functions yield estimates of scale elasticity (SCE) and elasticity of substitution (EOS) for pooled data. A subset of 31 companies with relatively complete data yields their individual SCE and EOS values, revealing their heterogeneity. Sorting the 31 companies by their SCE help name scale-efficient (high SCE) and scale inefficient (low SCE) multinationals. Similarly, a listing of 31 companies sorted by EOS allows …