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Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach.

Wood furniture industry is an important component in our manufacturing sector for it significantly contributes to the industrialization of Malaysia’s economy. Evaluating wood furniture industry’s level of efficiency is important to assist and provide a relative direction to small and medium firms...

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Main Authors: Radam, Alias, Yacob, Mohd Rusli, Mohd Muslim, Huda Farhana
Format: Article
Language:English
English
Published: Canadian Center of Science and Education 2010
Online Access:http://psasir.upm.edu.my/id/eprint/16978/1/Technical%20efficiency%20of%20the%20Malaysian%20wooden%20furniture%20industry.pdf
http://psasir.upm.edu.my/id/eprint/16978/
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spelling my.upm.eprints.169782015-11-02T02:29:54Z http://psasir.upm.edu.my/id/eprint/16978/ Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. Radam, Alias Yacob, Mohd Rusli Mohd Muslim, Huda Farhana Wood furniture industry is an important component in our manufacturing sector for it significantly contributes to the industrialization of Malaysia’s economy. Evaluating wood furniture industry’s level of efficiency is important to assist and provide a relative direction to small and medium firms on their business. The objective of this research is to examine the efficiency of wooden furniture industry by determining the technical efficiency using stochastic frontier production model. Results show that firm output is 54 per cent less than the maximal output which can be achieved from the existing inputs. The technical inefficiency on individual firm varies from 1.63 to 94.69 per cent and so does the potential to increase firm output from the existing inputs. This evidence suggests that many firms still operate below the efficiency level, confirming the conventional view that labor-intensive firms are most likely inefficient. Canadian Center of Science and Education 2010-07 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/16978/1/Technical%20efficiency%20of%20the%20Malaysian%20wooden%20furniture%20industry.pdf Radam, Alias and Yacob, Mohd Rusli and Mohd Muslim, Huda Farhana (2010) Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach. International Business Research, 3 (3). pp. 10-15. ISSN 1913-9004 English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
description Wood furniture industry is an important component in our manufacturing sector for it significantly contributes to the industrialization of Malaysia’s economy. Evaluating wood furniture industry’s level of efficiency is important to assist and provide a relative direction to small and medium firms on their business. The objective of this research is to examine the efficiency of wooden furniture industry by determining the technical efficiency using stochastic frontier production model. Results show that firm output is 54 per cent less than the maximal output which can be achieved from the existing inputs. The technical inefficiency on individual firm varies from 1.63 to 94.69 per cent and so does the potential to increase firm output from the existing inputs. This evidence suggests that many firms still operate below the efficiency level, confirming the conventional view that labor-intensive firms are most likely inefficient.
format Article
author Radam, Alias
Yacob, Mohd Rusli
Mohd Muslim, Huda Farhana
spellingShingle Radam, Alias
Yacob, Mohd Rusli
Mohd Muslim, Huda Farhana
Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach.
author_facet Radam, Alias
Yacob, Mohd Rusli
Mohd Muslim, Huda Farhana
author_sort Radam, Alias
title Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach.
title_short Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach.
title_full Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach.
title_fullStr Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach.
title_full_unstemmed Technical efficiency of the Malaysian wooden furniture industry: a stochastic frontier production approach.
title_sort technical efficiency of the malaysian wooden furniture industry: a stochastic frontier production approach.
publisher Canadian Center of Science and Education
publishDate 2010
url http://psasir.upm.edu.my/id/eprint/16978/1/Technical%20efficiency%20of%20the%20Malaysian%20wooden%20furniture%20industry.pdf
http://psasir.upm.edu.my/id/eprint/16978/
_version_ 1643826376365572096
score 13.211869

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