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Small business efficiency in the state of Kedah, Malaysia

This paper presents an empirical study on the efficiency of small businesses owned by Malays in Kedah, a state in the northern region of Peninsular Malaysia, wherein small businesses dominate the majority of commerce. There are five different types of main businesses, two from manufacturing and t...

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Main Authors: Nor Hasni Osman,, Abdul Aziz Jemain,
Format: Article
Published: Penerbit ukm 2008
Online Access:http://journalarticle.ukm.my/1891/
http://www.ukm.my/~ppsmfst/jqma/index.html
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spelling my-ukm.journal.18912011-06-16T04:12:03Z http://journalarticle.ukm.my/1891/ Small business efficiency in the state of Kedah, Malaysia Nor Hasni Osman, Abdul Aziz Jemain, This paper presents an empirical study on the efficiency of small businesses owned by Malays in Kedah, a state in the northern region of Peninsular Malaysia, wherein small businesses dominate the majority of commerce. There are five different types of main businesses, two from manufacturing and three from service sector. A study on the performance measurement using an efficiency technique of these businesses is sorely needed, since many Government agencies have provided continual help either financial or non-financial on a large scale, in order for these businesses to survive and compete in the commercial market. This study employs the data envelopment analysis (DEA), which is a non-parametric approach, to measure the performance of the subjects under study. DEA is widely use to measure the performance of organisations in the service industry. However, any organisation that is treated as a decision-making unit (DMU), including the manufacturing companies can use DEA technique in measuring their performance. Based on two basic models of DEA, almost 53% of DMUs from furniture production business are efficient. Whereas percentage of DMUs that are efficient for food processing, tailoring, food serving and grocery business are 42%, 41.7%, 34.1% and 33.3% respectively. The furniture production business also achieved the highest mean efficiency value compared to other type of business. The percentage of efficient DMUs and mean of efficiency had shown that the furniture production performs best in terms of efficiency level among the other four small businesses in Kedah Penerbit ukm 2008-12 Article PeerReviewed Nor Hasni Osman, and Abdul Aziz Jemain, (2008) Small business efficiency in the state of Kedah, Malaysia. Journal of Quality Measurement and Analysis, 4 (2). pp. 121-130. ISSN 1823-5670 http://www.ukm.my/~ppsmfst/jqma/index.html
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
description This paper presents an empirical study on the efficiency of small businesses owned by Malays in Kedah, a state in the northern region of Peninsular Malaysia, wherein small businesses dominate the majority of commerce. There are five different types of main businesses, two from manufacturing and three from service sector. A study on the performance measurement using an efficiency technique of these businesses is sorely needed, since many Government agencies have provided continual help either financial or non-financial on a large scale, in order for these businesses to survive and compete in the commercial market. This study employs the data envelopment analysis (DEA), which is a non-parametric approach, to measure the performance of the subjects under study. DEA is widely use to measure the performance of organisations in the service industry. However, any organisation that is treated as a decision-making unit (DMU), including the manufacturing companies can use DEA technique in measuring their performance. Based on two basic models of DEA, almost 53% of DMUs from furniture production business are efficient. Whereas percentage of DMUs that are efficient for food processing, tailoring, food serving and grocery business are 42%, 41.7%, 34.1% and 33.3% respectively. The furniture production business also achieved the highest mean efficiency value compared to other type of business. The percentage of efficient DMUs and mean of efficiency had shown that the furniture production performs best in terms of efficiency level among the other four small businesses in Kedah
format Article
author Nor Hasni Osman,
Abdul Aziz Jemain,
spellingShingle Nor Hasni Osman,
Abdul Aziz Jemain,
Small business efficiency in the state of Kedah, Malaysia
author_facet Nor Hasni Osman,
Abdul Aziz Jemain,
author_sort Nor Hasni Osman,
title Small business efficiency in the state of Kedah, Malaysia
title_short Small business efficiency in the state of Kedah, Malaysia
title_full Small business efficiency in the state of Kedah, Malaysia
title_fullStr Small business efficiency in the state of Kedah, Malaysia
title_full_unstemmed Small business efficiency in the state of Kedah, Malaysia
title_sort small business efficiency in the state of kedah, malaysia
publisher Penerbit ukm
publishDate 2008
url http://journalarticle.ukm.my/1891/
http://www.ukm.my/~ppsmfst/jqma/index.html
_version_ 1643735193235750912
score 13.211869

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