Graduate Thesis Or Dissertation
 

Productivity interfirm comparison : methodologies with a special application to the Northwest food processors

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  • Based on the premise that interfirm comparison can be an effective productivity improvement tool, productivity interfirm comparison (PIC) methods are examined in this research. The first part is an extensive literature review regarding the conventional interfirm comparison (IFC) scheme accepted widely in many countries outside the United States. Then, the conceptual framework is laid for the development of methodologies of the productivity interfirm comparison, which are amenable to measurement, evaluation, and planning phases of the productivity cycle of each participating firm. The following relationships are realized in the process of developing the underlying methodologies: 1. Mathematical relationships between productivity and other significant ratios which represent static properties of the production system of the industry concerned. 2. Causal relationships between productivity and other significant ratios which represent dynamic properties of the system. A pyramid productivity ratio structure is developed for the measurement of important factors of the production system utilizing the mathematical relationships. Then, a systematic interfirm evaluation procedure is designed, utilizing both mathematical and causal relationships, to provide a means to identify areas of weak productivity performance for individual firms. Finally, causal relationships are utilized to construct a multiple regression model to derive analytic information that identifies the most influential factors for achieving productivity improvement. These tools can help individual firms understand the interplay of interfirm factors in a production system, and to gain insights regarding viable management actions to achieve productivity improvement. These methodologies are demonstrated by application to a productivity-oriented interfirm comparison program conducted by the Northwest Food Processors Association. Although many practical restrictions existed in the course of the application, the outcome indicates the applicability of the methodologies to the program, and suggests further benefits when applied with more data availability. In light of the potential benefits expected, the following areas are particularly recommended for further research. 1. Development of a pyramid productivity ratio structure for a specific PIC scheme, which is amenable to the general pyramid model, and techniques to persuade potential participants to implement it. 2. Development of techniques to enhance the statistical reliability of PIC methodologies in descriptive statistics and correlation/regression analyses.
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