Partial productivity and technical efficiency of small and medium enterprises in the Malaysian food processing industry
The objective of this study is to investigate the partial productivity and technical efficiency (TE) of small and medium enterprises (SMEs) in the Malaysian food processing industry. A non-parametric approach data envelopment analysis (DEA) was employed on panel data of 35 sub-industries during the...
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Format: | Article |
Language: | English |
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Universiti Putra Malaysia Press
2013
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Online Access: | http://psasir.upm.edu.my/id/eprint/30867/1/30867-Partial%20Productivity%20and%20Technical%20Efficiency%20of%20Small.pdf |
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author | Shamsudin, Mad Nasir Yodfiatfinda, Radam, Alias Yusop, Zulkornain |
author_facet | Shamsudin, Mad Nasir Yodfiatfinda, Radam, Alias Yusop, Zulkornain |
author_sort | Shamsudin, Mad Nasir |
collection | UPM |
description | The objective of this study is to investigate the partial productivity and technical efficiency (TE) of small and medium enterprises (SMEs) in the Malaysian food processing industry. A non-parametric approach data envelopment analysis (DEA) was employed on panel data of 35 sub-industries during the period 2000 to 2006. The result shows that capital productivity was relatively unchangedand material productivity shows a declining trend during the period of observation. In 2000, material productivity (value added per material) was recorded at 0.22, and it stood at 0.18 in 2006. Higher cost of labor was found in the
manufacturing of alcohol, palm oil, refined palm oil, palm kernel oil, and sauce . Five sub-industries were technically efficient (TE is equal to unity) during the estimation periods. These industries are refined palm oil, kernel palm oil, feed, alcohol and soft drink. In contrast, five sub-industries experienced lower TE: canning of pineapple, sugar, glucose, coconuts and other flour, with the TE scores varying between 35.9 percent up to 48.1 percent. Labor cost and labor productivity increased from 13.65 to 13.95. |
first_indexed | 2024-03-06T08:18:51Z |
format | Article |
id | upm.eprints-30867 |
institution | Universiti Putra Malaysia |
language | English |
last_indexed | 2024-03-06T08:18:51Z |
publishDate | 2013 |
publisher | Universiti Putra Malaysia Press |
record_format | dspace |
spelling | upm.eprints-308672015-09-18T13:43:54Z http://psasir.upm.edu.my/id/eprint/30867/ Partial productivity and technical efficiency of small and medium enterprises in the Malaysian food processing industry Shamsudin, Mad Nasir Yodfiatfinda, Radam, Alias Yusop, Zulkornain The objective of this study is to investigate the partial productivity and technical efficiency (TE) of small and medium enterprises (SMEs) in the Malaysian food processing industry. A non-parametric approach data envelopment analysis (DEA) was employed on panel data of 35 sub-industries during the period 2000 to 2006. The result shows that capital productivity was relatively unchangedand material productivity shows a declining trend during the period of observation. In 2000, material productivity (value added per material) was recorded at 0.22, and it stood at 0.18 in 2006. Higher cost of labor was found in the manufacturing of alcohol, palm oil, refined palm oil, palm kernel oil, and sauce . Five sub-industries were technically efficient (TE is equal to unity) during the estimation periods. These industries are refined palm oil, kernel palm oil, feed, alcohol and soft drink. In contrast, five sub-industries experienced lower TE: canning of pineapple, sugar, glucose, coconuts and other flour, with the TE scores varying between 35.9 percent up to 48.1 percent. Labor cost and labor productivity increased from 13.65 to 13.95. Universiti Putra Malaysia Press 2013-08 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/30867/1/30867-Partial%20Productivity%20and%20Technical%20Efficiency%20of%20Small.pdf Shamsudin, Mad Nasir and Yodfiatfinda, and Radam, Alias and Yusop, Zulkornain (2013) Partial productivity and technical efficiency of small and medium enterprises in the Malaysian food processing industry. Pertanika Journal of Social Sciences & Humanities, 21 (spec. Aug.). pp. 17-30. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2021%20(S)%20Aug.%202013/02%20Page%2017-30.pdf |
spellingShingle | Shamsudin, Mad Nasir Yodfiatfinda, Radam, Alias Yusop, Zulkornain Partial productivity and technical efficiency of small and medium enterprises in the Malaysian food processing industry |
title | Partial productivity and technical efficiency of small and
medium enterprises in the Malaysian food processing
industry |
title_full | Partial productivity and technical efficiency of small and
medium enterprises in the Malaysian food processing
industry |
title_fullStr | Partial productivity and technical efficiency of small and
medium enterprises in the Malaysian food processing
industry |
title_full_unstemmed | Partial productivity and technical efficiency of small and
medium enterprises in the Malaysian food processing
industry |
title_short | Partial productivity and technical efficiency of small and
medium enterprises in the Malaysian food processing
industry |
title_sort | partial productivity and technical efficiency of small and medium enterprises in the malaysian food processing industry |
url | http://psasir.upm.edu.my/id/eprint/30867/1/30867-Partial%20Productivity%20and%20Technical%20Efficiency%20of%20Small.pdf |
work_keys_str_mv | AT shamsudinmadnasir partialproductivityandtechnicalefficiencyofsmallandmediumenterprisesinthemalaysianfoodprocessingindustry AT yodfiatfinda partialproductivityandtechnicalefficiencyofsmallandmediumenterprisesinthemalaysianfoodprocessingindustry AT radamalias partialproductivityandtechnicalefficiencyofsmallandmediumenterprisesinthemalaysianfoodprocessingindustry AT yusopzulkornain partialproductivityandtechnicalefficiencyofsmallandmediumenterprisesinthemalaysianfoodprocessingindustry |