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Technical efficiency in transport manufacturing firms: evidence from Malaysia

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 21804184

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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.

Item Type: Article
Uncontrolled Keywords: Technical efficiency; technical inefficiency; firms; transportation; stochastic frontier analysis
Subjects: T Technology > TS Manufactures > TS155-194 Production management. Operations management
Divisions: Faculty of Technology Management and Business > Department of Production and Operation Management
Depositing User: Mr. Mohammad Shaifulrip Ithnin
Date Deposited: 31 Dec 2018 07:17
Last Modified: 31 Dec 2018 07:17
URI: http://eprints.uthm.edu.my/id/eprint/10441
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