Uncovering X-Efficiency: The Key to Unlocking Organizational Inefficiencies
The concept of X-efficiency, introduced by Leibenstein in 1966, aims to understand non-allocative inefficiencies in organizations. X-inefficiency is similar to technical inefficiency but focuses on other sources of inefficiencies beyond technical aspects. The term 'X-inefficiency' was coined to encompass all elements contributing to these inefficiencies, as existing concepts did not fully capture the complexity of the issue.