The role of production losses in the effect of production costs of companies on the efficiency: An application in Denizli province textile sector

The purpose of this study is to determine the role of production losses in the effect of production costs of businesses on productivity. Its sub-objectives are to determine the effect of production losses on production costs and then on productivity. Cronbach Alpha Coefficient method was used to determine the reliability of the scales used in the research and Explanatory and Confirmatory Factor Analysis was used to determine their validity. After testing the reliability and validity of the scales, Simple Linear Regression Analysis and Structural Equation Model were used to test the research hypotheses. According to the analysis findings; production costs have a negative impact on firm productivity. In addition, production losses have a role in the effect of production costs on firm productivity. As another finding; While production losses have a positive effect on production costs, it can be said to have a negative effect on firm productivity.