Does hiring a manager improve efficiency – owner vs. non-owner management control of rice mills

Purpose In this study, the impact of owner-operator and non-owner operator rice mills on productive efficiency is investigated. Design/methodology/approach Primary data collected from a survey 111 in Mwea region Kenya are used. A metafrontier approach employed to measure overall technical which decomposed into managerial organisational efficiency. Findings The results reveal no significant difference between owner operated mills. However, exists mills: were found be performing significantly better than owner-operated. Practical implications authors provide supporting evidence study discuss some policy stemming study. Originality/value It recognised that for owners take risk divesting control hired manager rather manage firm themselves can have major strategic, financial often emotional consequences. there little empirical how production will develop as result hiring with underlying economic theory providing ambiguous guidance. Standard assumes firms behave profit maximisers, achieved by operating efficiently. may not always case literature indicates, especially so small businesses low- middle-income countries.