Technical efficiency in transport manufacturing firms: Evidence from Malaysia

Mohd Fahmy Abdullah, Rahmah Ismail, Noorasiah Sulaiman, Basri Abdul Talib

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)57-77
Number of pages21
JournalAsian Academy of Management Journal
Volume22
Issue number1
DOIs
Publication statusPublished - 2017

Fingerprint

Manufacturing firms
Technical efficiency
Technical inefficiency
Malaysia
Employees
Employee motivation
Stochastic frontier analysis
Communication cost
Cross-sectional data
Wage rate
Costs
Statistics
Information and communication technology
Wages

Keywords

  • Firms
  • Stochastic frontier analysis
  • Technical efficiency
  • Technical inefficiency
  • Transportation

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

Technical efficiency in transport manufacturing firms : Evidence from Malaysia. / Abdullah, Mohd Fahmy; Ismail, Rahmah; Sulaiman, Noorasiah; Abdul Talib, Basri.

In: Asian Academy of Management Journal, Vol. 22, No. 1, 2017, p. 57-77.

Research output: Contribution to journalArticle

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