A research study submitted in partial fulfi llment of the requirements for t he degree of Master of Business Administration.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1992

This is a comparative study of some economic concepts like value added per unit of sales and capital intensiveness ratio (investment in machinery & equipment divided by total number of employees } on the one hand, and a technometric concepts like technology contribution coefficient and contributions of different components of technology in production process on the other hand. Moreover, the study al so shows methods of measuring technology contribution coefficient and degree of competition in the market . Taking data from 81 textile units of Nepal, the study shows that under considerable degree of competition in the market value added per unit of sales , technology contribution coefficient and capital intensiveness ratio are significantly correlated in general except for the case of non-powered production facilities (hand looms}. In addition, the contributions of different components of technology tended to be correlated among themselves in general. The results strongly support the notion against relying on only one type of measurement , particularly in the case of some market niches where the value added might be more because of low technology than high technology.