Evaluation of market competitiveness of SMEs in the Malaysian food processing industry

This study aims to evaluate the market competitiveness of Small and Medium Enterprises (SMEs) in the Malaysian Food Processing Industry (FPI) in terms of technical efficiency and productivity growth. A non-parametric approach using Data Envelopment Analysis (DEA) was employed for the five-digit data...

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Main Authors: Shamsudin, Mad Nasir, Yodfiatfinda, Mohamed, Zainal Abidin, Yusop, Zulkornain, Radam, Alias
Format: Article
Language:English
Published: Federal Agricultural Marketing Authority 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22807/1/Evaluation%20of%20market%20competitiveness%20of%20SMEs%20in%20the%20Malaysian%20food%20processing%20industry.pdf
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author Shamsudin, Mad Nasir
Yodfiatfinda,
Mohamed, Zainal Abidin
Yusop, Zulkornain
Radam, Alias
author_facet Shamsudin, Mad Nasir
Yodfiatfinda,
Mohamed, Zainal Abidin
Yusop, Zulkornain
Radam, Alias
author_sort Shamsudin, Mad Nasir
collection UPM
description This study aims to evaluate the market competitiveness of Small and Medium Enterprises (SMEs) in the Malaysian Food Processing Industry (FPI) in terms of technical efficiency and productivity growth. A non-parametric approach using Data Envelopment Analysis (DEA) was employed for the five-digit data of 35 sub-industries in the Malaysian FPI. The findings suggest that Technical Efficiency (TE) was 0.756 during the period of 2000-2006, indicating that SMEs in the Malaysian food industry were able to expand their output by 24.4 percent while using the same level of inputs. Total Factor Productivity (TFP) growth was negative 1.3 percent. Processing and preserving poultry and poultry products was the sub-industry with the highest productivity growth, while manufacturing of tea had the lowest. Research and development (R&D), training and public infrastructure were determinants that positively affected the TFP growth. For technical efficiency, public infrastructure, foreign direct investment and foreign ownership were the determinants.
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spelling upm.eprints-228072015-12-15T03:40:40Z http://psasir.upm.edu.my/id/eprint/22807/ Evaluation of market competitiveness of SMEs in the Malaysian food processing industry Shamsudin, Mad Nasir Yodfiatfinda, Mohamed, Zainal Abidin Yusop, Zulkornain Radam, Alias This study aims to evaluate the market competitiveness of Small and Medium Enterprises (SMEs) in the Malaysian Food Processing Industry (FPI) in terms of technical efficiency and productivity growth. A non-parametric approach using Data Envelopment Analysis (DEA) was employed for the five-digit data of 35 sub-industries in the Malaysian FPI. The findings suggest that Technical Efficiency (TE) was 0.756 during the period of 2000-2006, indicating that SMEs in the Malaysian food industry were able to expand their output by 24.4 percent while using the same level of inputs. Total Factor Productivity (TFP) growth was negative 1.3 percent. Processing and preserving poultry and poultry products was the sub-industry with the highest productivity growth, while manufacturing of tea had the lowest. Research and development (R&D), training and public infrastructure were determinants that positively affected the TFP growth. For technical efficiency, public infrastructure, foreign direct investment and foreign ownership were the determinants. Federal Agricultural Marketing Authority 2011-12 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22807/1/Evaluation%20of%20market%20competitiveness%20of%20SMEs%20in%20the%20Malaysian%20food%20processing%20industry.pdf Shamsudin, Mad Nasir and Yodfiatfinda, and Mohamed, Zainal Abidin and Yusop, Zulkornain and Radam, Alias (2011) Evaluation of market competitiveness of SMEs in the Malaysian food processing industry. Journal of Agribusiness Marketing, 4. pp. 1-20. ISSN 1985-3890 http://www.fama.gov.my/web/guest/volume_4#.VV6MuEb8aBE
spellingShingle Shamsudin, Mad Nasir
Yodfiatfinda,
Mohamed, Zainal Abidin
Yusop, Zulkornain
Radam, Alias
Evaluation of market competitiveness of SMEs in the Malaysian food processing industry
title Evaluation of market competitiveness of SMEs in the Malaysian food processing industry
title_full Evaluation of market competitiveness of SMEs in the Malaysian food processing industry
title_fullStr Evaluation of market competitiveness of SMEs in the Malaysian food processing industry
title_full_unstemmed Evaluation of market competitiveness of SMEs in the Malaysian food processing industry
title_short Evaluation of market competitiveness of SMEs in the Malaysian food processing industry
title_sort evaluation of market competitiveness of smes in the malaysian food processing industry
url http://psasir.upm.edu.my/id/eprint/22807/1/Evaluation%20of%20market%20competitiveness%20of%20SMEs%20in%20the%20Malaysian%20food%20processing%20industry.pdf
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