Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach.
Wood furniture industry is an important component in our manufacturing sector for it significantly contributes to the industrialization of Malaysia’s economy. Evaluating wood furniture industry’s level of efficiency is important to assist and provide a relative direction to small and medium firms...
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| Format: | Article |
| Language: | English English |
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Canadian Center of Science and Education
2010
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| Online Access: | http://psasir.upm.edu.my/id/eprint/16978/ http://psasir.upm.edu.my/id/eprint/16978/1/Technical%20efficiency%20of%20the%20Malaysian%20wooden%20furniture%20industry.pdf |
| _version_ | 1848843112276819968 |
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| author | Radam, Alias Yacob, Mohd Rusli Mohd Muslim, Huda Farhana |
| author_facet | Radam, Alias Yacob, Mohd Rusli Mohd Muslim, Huda Farhana |
| author_sort | Radam, Alias |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Wood furniture industry is an important component in our manufacturing sector for it significantly contributes to
the industrialization of Malaysia’s economy. Evaluating wood furniture industry’s level of efficiency is
important to assist and provide a relative direction to small and medium firms on their business. The objective of
this research is to examine the efficiency of wooden furniture industry by determining the technical efficiency
using stochastic frontier production model. Results show that firm output is 54 per cent less than the maximal
output which can be achieved from the existing inputs. The technical inefficiency on individual firm varies from
1.63 to 94.69 per cent and so does the potential to increase firm output from the existing inputs. This evidence
suggests that many firms still operate below the efficiency level, confirming the conventional view that
labor-intensive firms are most likely inefficient. |
| first_indexed | 2025-11-15T08:09:51Z |
| format | Article |
| id | upm-16978 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T08:09:51Z |
| publishDate | 2010 |
| publisher | Canadian Center of Science and Education |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-169782015-11-02T02:29:54Z http://psasir.upm.edu.my/id/eprint/16978/ Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. Radam, Alias Yacob, Mohd Rusli Mohd Muslim, Huda Farhana Wood furniture industry is an important component in our manufacturing sector for it significantly contributes to the industrialization of Malaysia’s economy. Evaluating wood furniture industry’s level of efficiency is important to assist and provide a relative direction to small and medium firms on their business. The objective of this research is to examine the efficiency of wooden furniture industry by determining the technical efficiency using stochastic frontier production model. Results show that firm output is 54 per cent less than the maximal output which can be achieved from the existing inputs. The technical inefficiency on individual firm varies from 1.63 to 94.69 per cent and so does the potential to increase firm output from the existing inputs. This evidence suggests that many firms still operate below the efficiency level, confirming the conventional view that labor-intensive firms are most likely inefficient. Canadian Center of Science and Education 2010-07 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/16978/1/Technical%20efficiency%20of%20the%20Malaysian%20wooden%20furniture%20industry.pdf Radam, Alias and Yacob, Mohd Rusli and Mohd Muslim, Huda Farhana (2010) Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. International Business Research, 3 (3). pp. 10-15. ISSN 1913-9004 Furniture - Malaysia. English |
| spellingShingle | Furniture - Malaysia. Radam, Alias Yacob, Mohd Rusli Mohd Muslim, Huda Farhana Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. |
| title | Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. |
| title_full | Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. |
| title_fullStr | Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. |
| title_full_unstemmed | Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. |
| title_short | Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. |
| title_sort | technical efficiency of the malaysian wooden furniture industry: a stochastic frontier production approach. |
| topic | Furniture - Malaysia. |
| url | http://psasir.upm.edu.my/id/eprint/16978/ http://psasir.upm.edu.my/id/eprint/16978/1/Technical%20efficiency%20of%20the%20Malaysian%20wooden%20furniture%20industry.pdf |