TY - JOUR
T1 - Comparison of Total Factor Productivity and Total Productivity for Their Relationship Attributes with Profit
AU - Tiruvengadam, Naveen
AU - Beruvides, Mario G.
AU - Elizondo-Noriega, Armando
N1 - Funding Information:
We would like to thank Dr. William R. Pasewark (Webster Professor of Business - Accounting, Texas Tech University) for his invaluable inputs on the accounting aspects of this work. We are also grateful to Dr. W. J. Conover (Horn Professor of Statistics, Texas Tech University) and Dr. Victor Tercero-Gomez (Tecnológico de Monterrey, Monterrey, Mexico) for their insights on the statistical aspects of this work. The authors would also like to thank Mr. Richard Burgess, PhD student and Instructor at Murdough Center for Engineering Professionalism, Texas Tech University, for his continued support with reviewing and proofreading this manuscript.
Publisher Copyright:
© 2020, © 2020 American Society for Engineering Management.
PY - 2020
Y1 - 2020
N2 - This study compares two productivity metrics, Total Factor Productivity (TFP) and Total Productivity (TP), for their associations with one another and two types of profits. Several attributes of the direct productivity-profit relationship, not mediated by any other firm characteristic, are evaluated, such as the existence of bi-directionality in the predictive association between productivity and profit. The influence of productivity on profit is reaffirmed; crucially, the impact of profit on productivity is found to exist as well. The unique contribution of this study is that it demonstrates that TFP outperforms TP considerably in its ability to associate with and predict profits. The influence of seasonal and non-seasonal time delays on the productivity-profit association are found to be important implications for engineering managers.
AB - This study compares two productivity metrics, Total Factor Productivity (TFP) and Total Productivity (TP), for their associations with one another and two types of profits. Several attributes of the direct productivity-profit relationship, not mediated by any other firm characteristic, are evaluated, such as the existence of bi-directionality in the predictive association between productivity and profit. The influence of productivity on profit is reaffirmed; crucially, the impact of profit on productivity is found to exist as well. The unique contribution of this study is that it demonstrates that TFP outperforms TP considerably in its ability to associate with and predict profits. The influence of seasonal and non-seasonal time delays on the productivity-profit association are found to be important implications for engineering managers.
KW - Economics of Engineering (Enabling)
KW - Firm Level Measurement
KW - Operations and Strategic Management (Strategic)
KW - directionality
KW - prediction
KW - time delay
UR - http://www.scopus.com/inward/record.url?scp=85088398118&partnerID=8YFLogxK
U2 - 10.1080/10429247.2020.1772949
DO - 10.1080/10429247.2020.1772949
M3 - Article
AN - SCOPUS:85088398118
SN - 1042-9247
SP - 1
EP - 18
JO - EMJ - Engineering Management Journal
JF - EMJ - Engineering Management Journal
ER -