American Journal of Business and Operations Research AJBOR 2692-2967 2770-0216 10.54216/AJBOR https://www.americaspg.com/journals/show/4249 2018 2018 Tashkent Institute of Textile and Light Industry, Tashkent, Uzbekistan Rasulova Rasulova This study analyzes the system of factors affecting production efficiency in the context of increasing production efficiency under conditions of innovative economic development. The research emphasizes rational resource use as a key driver of sustainable industrial growth and competitiveness. Based on a system approach, efficiency factors are classified into macro- and micro-levels, as well as internal and external environments, with a particular focus on controllable micro factors. Using the input–output framework and a case-oriented analysis of porcelain production, the paper identifies labor, capital, raw materials, energy, technology, and inventory management as the most influential internal factors. The findings show that coordinated management of these factors, supported by feedback mechanisms and strategic resource management, can significantly improve productivity, reduce costs, and enhance product quality. 2026 2026 19 22 10.54216/AJBOR.140104 https://www.americaspg.com/articleinfo/1/show/4249