X-efficiency Achievement
The pursuit by startups to reach a state of X-efficiency, where they effectively utilize all resources and operate at maximum productivity with minimal waste, striving for operational excellence and sustainable growth.
Benefits
X-efficiency achievement focuses on maximizing productivity while minimizing waste for sustainable growth.
Frequently Asked Questions
What is the X-efficiency theory?
The X-efficiency theory suggests that firms are more efficient when they face competitive pressures, leading to better resource use and reduced inefficiency.
What is an example of x-efficiency?
An example of x-efficiency is a manufacturing plant that maximizes output while minimizing waste, using resources efficiently.
What is the difference between x-efficiency and x-inefficiency?
X-efficiency refers to efficiency maintained under competitive conditions, while x-inefficiency happens when a firm is less efficient due to lack of competitive pressure.
Key Takeaway
X-efficiency achievement focuses on maximizing productivity while minimizing waste for sustainable growth.