Technical efficiency in transport manufacturing firms: evidence from Malaysia

This study aims to identify the level of technical efficiency and the determinants of technical inefficiency for transport manufacturing firms in Malaysia for 2010 using cross-sectional data of 130 firms acquired from the Department of Statistics (DOS). Based on the stochastic frontier analysis (SFA...

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Main Authors: Abdullah, Mohd Fahmy, Ismail, Rahmah, Sulaiman, Noorasiah, Abdul Talib, Basri
Format: Article
Language:English
Published: Penerbit Universiti Sains Malaysia, 2017
Subjects:
Online Access:http://eprints.uthm.edu.my/4587/
http://eprints.uthm.edu.my/4587/1/AJ%202017%20%28208%29%20Technical%20efficiency%20in%20transport%20manufacturing%20firms.pdf
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author Abdullah, Mohd Fahmy
Ismail, Rahmah
Sulaiman, Noorasiah
Abdul Talib, Basri
author_facet Abdullah, Mohd Fahmy
Ismail, Rahmah
Sulaiman, Noorasiah
Abdul Talib, Basri
author_sort Abdullah, Mohd Fahmy
building UTHM Institutional Repository
collection Online Access
description This study aims to identify the level of technical efficiency and the determinants of technical inefficiency for transport manufacturing firms in Malaysia for 2010 using cross-sectional data of 130 firms acquired from the Department of Statistics (DOS). Based on the stochastic frontier analysis (SFA) approach, the results of the study reveal that the average level of technical efficiency is moderate. The estimated result identifies the important determinants of technical inefficiency which are due to employee wage rates as well as the cost of information and communication technology. The fundamental implications of this study are that transport manufacturing firms need to boost motivation among employees and strengthen the network of the production market via wage increment and communication cost.
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publishDate 2017
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spelling uthm-45872021-12-07T08:03:32Z http://eprints.uthm.edu.my/4587/ Technical efficiency in transport manufacturing firms: evidence from Malaysia Abdullah, Mohd Fahmy Ismail, Rahmah Sulaiman, Noorasiah Abdul Talib, Basri TS155-194 Production management. Operations management This study aims to identify the level of technical efficiency and the determinants of technical inefficiency for transport manufacturing firms in Malaysia for 2010 using cross-sectional data of 130 firms acquired from the Department of Statistics (DOS). Based on the stochastic frontier analysis (SFA) approach, the results of the study reveal that the average level of technical efficiency is moderate. The estimated result identifies the important determinants of technical inefficiency which are due to employee wage rates as well as the cost of information and communication technology. The fundamental implications of this study are that transport manufacturing firms need to boost motivation among employees and strengthen the network of the production market via wage increment and communication cost. Penerbit Universiti Sains Malaysia, 2017 Article PeerReviewed text en http://eprints.uthm.edu.my/4587/1/AJ%202017%20%28208%29%20Technical%20efficiency%20in%20transport%20manufacturing%20firms.pdf Abdullah, Mohd Fahmy and Ismail, Rahmah and Sulaiman, Noorasiah and Abdul Talib, Basri (2017) Technical efficiency in transport manufacturing firms: evidence from Malaysia. Asian Academy of Management Journal, 22 (1). pp. 57-77. ISSN 2180-4184 https://doi.org/10.21315/aamj2017.22.1.3
spellingShingle TS155-194 Production management. Operations management
Abdullah, Mohd Fahmy
Ismail, Rahmah
Sulaiman, Noorasiah
Abdul Talib, Basri
Technical efficiency in transport manufacturing firms: evidence from Malaysia
title Technical efficiency in transport manufacturing firms: evidence from Malaysia
title_full Technical efficiency in transport manufacturing firms: evidence from Malaysia
title_fullStr Technical efficiency in transport manufacturing firms: evidence from Malaysia
title_full_unstemmed Technical efficiency in transport manufacturing firms: evidence from Malaysia
title_short Technical efficiency in transport manufacturing firms: evidence from Malaysia
title_sort technical efficiency in transport manufacturing firms: evidence from malaysia
topic TS155-194 Production management. Operations management
url http://eprints.uthm.edu.my/4587/
http://eprints.uthm.edu.my/4587/
http://eprints.uthm.edu.my/4587/1/AJ%202017%20%28208%29%20Technical%20efficiency%20in%20transport%20manufacturing%20firms.pdf