A resource-based interpretation of technical efficiency indexes

During the last decades, the measurement of technical efficiency indexes has become a very popular field of research. Recent refinements in estimation tools and techniques have contributed to increase the reliability of efficiency analyses. On the other hand, the lack of theory behind the concept of technical inefficiency complicates the interpretation of the empirically estimated indexes. The objective of this article is to outline an interpretation of currently used efficiency indexes within the framework of the resource-based view of the firm. The problems inherent to the definition of technical efficiency as a relevant theoretical concept are examined and, then, the link between technical efficiency and the resource-based view of the firm is discussed. JEL Classification: D24, D23, L2.

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