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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Main Authors: Shamsudin, Mad Nasir, Yodfiatfinda, Radam, Alias, Yusop, Zulkornain
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2013
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.
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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
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