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Open Access
Article
Publication date: 11 April 2024

Yot Amornkitvikai, Martin O'Brien and Ruttiya Bhula-or

The development of green manufacturing has become essential to achieve sustainable development and modernize the nation’s manufacturing and production capacity without increasing…

Abstract

Purpose

The development of green manufacturing has become essential to achieve sustainable development and modernize the nation’s manufacturing and production capacity without increasing nonrenewable resource consumption and pollution. This study investigates the effect of green industrial practices on technical efficiency for Thai manufacturers.

Design/methodology/approach

The study uses stochastic frontier analysis (SFA) to estimate the stochastic frontier production function (SFPF) and inefficiency effects model, as pioneered by Battese and Coelli (1995).

Findings

This study shows that, on average, Thai manufacturing firms have experienced declining returns-to-scale production and relatively low technical efficiency. However, it is estimated that Thai manufacturing firms with a green commitment obtained the highest technical efficiency, followed by those with green activity, green systems and green culture levels, compared to those without any commitment to green manufacturing practices. Finally, internationalization and skill development can significantly improve technical efficiency.

Practical implications

Green industry policy mixes will be vital for driving structural reforms toward a more environmentally friendly and sustainable economic system. Furthermore, circular economy processes can promote firms' production efficiency and resource use.

Originality/value

To the best of the authors' knowledge, this study is the first to investigate the effect of green industry practices on the technical efficiency of Thai manufacturing enterprises. This study also encompasses analyses of the roles of internationalization, innovation and skill development.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 27 August 2020

Heba Nassar, Hala Sakr, Asmaa Ezzat and Pakinam Fikry

This paper aims to evaluate the technical efficiency of the health-care systems in 21 selected middle-income countries during the period (2000–2017) and determine the source of…

3137

Abstract

Purpose

This paper aims to evaluate the technical efficiency of the health-care systems in 21 selected middle-income countries during the period (2000–2017) and determine the source of inefficiency whether it is transient (short run) or persistent (long run).

Design/methodology/approach

The study uses the stochastic frontier analysis technique through employing the generalized true random effects model which overcomes the drawbacks of the previously introduced stochastic frontier models and allows for the separation between unobserved heterogeneity, persistent inefficiency and transient inefficiency.

Findings

Persistent efficiency is lower than the transient efficiency; hence, there are more efficiency gains that can be made by the selected countries by adopting long-term policies that aim at reforming the structure of the health-care system in the less efficient countries such as South Africa and Russia. The most efficient countries are Vietnam, Mexico and China which adopted a social health insurance that covers almost the whole population with the aim of increasing access to health-care services. Also, decentralization in health-care has assisted in adopting health-care policies that are suitable for both the rural and urban areas based on their specific conditions and health-care needs. A key success in the implementation of the adopted long-term policies by those countries is the continuous monitoring and evaluation of their outcomes and comparing them with the predefined targets and conducting any necessary modifications to ensure their movement in the right path to achieve their goals.

Originality/value

Although several studies have evaluated the technical efficiency both across and within countries using non-parametric (data envelopment analysis) and parametric (stochastic frontier analysis) approaches, to the best of the authors’ knowledge, this is the first attempt to evaluate the technical efficiency of selected middle-income countries during the period (2000–2017) using the generalized true random effects stochastic frontier analysis model.

Details

Review of Economics and Political Science, vol. 5 no. 4
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 9 October 2019

José A. Pérez-Méndez, María Pérez-Urdiales and David Roibas

This paper aims to evaluate the impact of the subsidies established by Measure 123 of the Rural Development Policy on the productivity of a sample of agri-food and forestry…

1694

Abstract

Purpose

This paper aims to evaluate the impact of the subsidies established by Measure 123 of the Rural Development Policy on the productivity of a sample of agri-food and forestry companies in the region of Asturias over the period 2006-2009.

Design/methodology/approach

The authors estimate a stochastic frontier function which allows subsidies to be considered as affecting both the level of technical efficiency and technical progress.

Findings

The results show that while subsidies have a positive effect on the technical progress of companies in the agri-food industry, for the forestry industry, the effect materializes as an improvement in technical efficiency. Additionally, other factors affecting either, technical progress and technical efficiency were identified.

Originality/value

This study adopts a model that allows the separate identification of the effect of subsidies on the level of efficiency, on the one hand, and on the technical progress, on the other.

Details

Applied Economic Analysis, vol. 27 no. 80
Type: Research Article
ISSN:

Keywords

Open Access
Article
Publication date: 2 December 2016

Juan Aparicio

The purpose of this paper is to provide an outline of the major contributions in the literature on the determination of the least distance in data envelopment analysis (DEA). The…

2216

Abstract

Purpose

The purpose of this paper is to provide an outline of the major contributions in the literature on the determination of the least distance in data envelopment analysis (DEA). The focus herein is primarily on methodological developments. Specifically, attention is mainly paid to modeling aspects, computational features, the satisfaction of properties and duality. Finally, some promising avenues of future research on this topic are stated.

Design/methodology/approach

DEA is a methodology based on mathematical programming for the assessment of relative efficiency of a set of decision-making units (DMUs) that use several inputs to produce several outputs. DEA is classified in the literature as a non-parametric method because it does not assume a particular functional form for the underlying production function and presents, in this sense, some outstanding properties: the efficiency of firms may be evaluated independently on the market prices of the inputs used and outputs produced; it may be easily used with multiple inputs and outputs; a single score of efficiency for each assessed organization is obtained; this technique ranks organizations based on relative efficiency; and finally, it yields benchmarking information. DEA models provide both benchmarking information and efficiency scores for each of the evaluated units when it is applied to a dataset of observations and variables (inputs and outputs). Without a doubt, this benchmarking information gives DEA a distinct advantage over other efficiency methodologies, such as stochastic frontier analysis (SFA). Technical inefficiency is typically measured in DEA as the distance between the observed unit and a “benchmarking” target on the estimated piece-wise linear efficient frontier. The choice of this target is critical for assessing the potential performance of each DMU in the sample, as well as for providing information on how to increase its performance. However, traditional DEA models yield targets that are determined by the “furthest” efficient projection to the evaluated DMU. The projected point on the efficient frontier obtained as such may not be a representative projection for the judged unit, and consequently, some authors in the literature have suggested determining closest targets instead. The general argument behind this idea is that closer targets suggest directions of enhancement for the inputs and outputs of the inefficient units that may lead them to the efficiency with less effort. Indeed, authors like Aparicio et al. (2007) have shown, in an application on airlines, that it is possible to find substantial differences between the targets provided by applying the criterion used by the traditional DEA models, and those obtained when the criterion of closeness is utilized for determining projection points on the efficient frontier. The determination of closest targets is connected to the calculation of the least distance from the evaluated unit to the efficient frontier of the reference technology. In fact, the former is usually computed through solving mathematical programming models associated with minimizing some type of distance (e.g. Euclidean). In this particular respect, the main contribution in the literature is the paper by Briec (1998) on Hölder distance functions, where formally technical inefficiency to the “weakly” efficient frontier is defined through mathematical distances.

Findings

All the interesting features of the determination of closest targets from a benchmarking point of view have generated, in recent times, the increasing interest of researchers in the calculation of the least distance to evaluate technical inefficiency (Aparicio et al., 2014a). So, in this paper, we present a general classification of published contributions, mainly from a methodological perspective, and additionally, we indicate avenues for further research on this topic. The approaches that we cite in this paper differ in the way that the idea of similarity is made operative. Similarity is, in this sense, implemented as the closeness between the values of the inputs and/or outputs of the assessed units and those of the obtained projections on the frontier of the reference production possibility set. Similarity may be measured through multiple distances and efficiency measures. In turn, the aim is to globally minimize DEA model slacks to determine the closest efficient targets. However, as we will show later in the text, minimizing a mathematical distance in DEA is not an easy task, as it is equivalent to minimizing the distance to the complement of a polyhedral set, which is not a convex set. This complexity will justify the existence of different alternatives for solving these types of models.

Originality/value

As we are aware, this is the first survey in this topic.

Details

Journal of Centrum Cathedra, vol. 9 no. 2
Type: Research Article
ISSN: 1851-6599

Keywords

Open Access
Article
Publication date: 27 March 2019

Mutasem Mahmoud Jaloudi

The purpose of this paper is to evaluate the technical efficiency in the Jordan insurance market and examine the internal and external determinants that appear to affect the…

3832

Abstract

Purpose

The purpose of this paper is to evaluate the technical efficiency in the Jordan insurance market and examine the internal and external determinants that appear to affect the technical efficiency of the insurance companies.

Design/methodology/approach

The study used panel data for 22 insurance companies operating inside Jordan over the period 2000–2016. The author used the data envelopment analysis to evaluate the technical efficiency scores, slacks-based and logit models to examine the efficiency determinants.

Findings

The study found that there is a slight development of technical efficiency for the Jordanian insurance companies during the study period. In addition, there is a substantial efficiency difference among insurance companies each year, and there is a variation at the level of efficiency for each company in each year. The results also showed that owners’ equities are among the most important internal determinants of companies’ efficiency, and there is a significant correlation between type, size and return on assets of the insurer and its efficiency.

Originality/value

This study provides insurance management with relevant indicators that would guide them to make efficient use of the resource base. The period of study also covers the period following the adoption of the insurance law and the issuance of most of the legislation related to the work of insurance companies.

Details

Journal of Asian Business and Economic Studies, vol. 26 no. 1
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 18 July 2022

Eucabeth Majiwa, Boon Lee, Jonas Månsson and Clevo Wilson

In this study, the impact of owner-operator and non-owner operator rice mills on productive efficiency is investigated.

Abstract

Purpose

In this study, the impact of owner-operator and non-owner operator rice mills on productive efficiency is investigated.

Design/methodology/approach

Primary data collected from a survey of 111 rice mills in the Mwea region of Kenya are used. A metafrontier approach is employed to measure overall technical efficiency which is decomposed into managerial and organisational efficiency.

Findings

The results reveal no significant difference in overall technical and managerial efficiency between owner and non-owner operated mills. However, a significant difference exists in organisational efficiency of mills: non-owner operated mills were found to be performing significantly better than owner-operated.

Practical implications

The authors provide supporting evidence to the study and discuss some of the significant policy implications stemming from the study.

Originality/value

It is recognised that for owners to take the risk of divesting control to a hired manager rather than manage the firm themselves can have major strategic, financial and often emotional consequences. However, there is little empirical evidence on how production efficiency will develop as a result of hiring a manager with the underlying economic theory providing ambiguous guidance. Standard economic theory assumes that firms behave as profit maximisers, which can be achieved by operating efficiently. However, this may not always be the case and as the literature indicates, this may especially be so for small businesses in low- and middle-income countries.

Details

Journal of Economic Studies, vol. 50 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 4 December 2017

Nurul Aisyah Binti Mohd Suhaimi, Yann de Mey and Alfons Oude Lansink

The purpose of this paper is to measure the technical inefficiency of dairy farms and subsequently investigate the factors affecting technical inefficiency in the Malaysian dairy…

2238

Abstract

Purpose

The purpose of this paper is to measure the technical inefficiency of dairy farms and subsequently investigate the factors affecting technical inefficiency in the Malaysian dairy industry.

Design/methodology/approach

This study uses multi-directional efficiency analysis to measure the technical inefficiency scores on a sample of 200 farm observations and single-bootstrap truncated regression model to define factors affecting technical inefficiency.

Findings

Managerial and program inefficiency scores are presented for intensive and semi-intensive production systems. The results reveal marked differences in the inefficiency scores across inputs and between production systems.

Practical implications

Intensive systems generally have lowest managerial and program inefficiency scores in the Malaysian dairy farming sector. Policy makers could use this information to advise dairy farmers to convert their farming system to the intensive system.

Social implications

The results suggest that the Malaysian Government should redefine its policy for providing farm finance and should target young farmers when designing training and extension programs in order to improve the performance of the dairy sector.

Originality/value

The existing literature on Southeast Asian dairy farming has neither focused on investigating input-specific efficiency nor on comparing managerial and program efficiency. This paper aims to fill this gap.

Details

British Food Journal, vol. 119 no. 12
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 24 April 2024

Liwei Wang and Tianbo Tang

This paper aims to promote the higher quality development of high-tech enterprises in China. While science and technology have greatly promoted human civilization, resources have…

Abstract

Purpose

This paper aims to promote the higher quality development of high-tech enterprises in China. While science and technology have greatly promoted human civilization, resources have been excessively consumed and the environment has been sharply polluted. Therefore, it is particularly important for current enterprises to make use of scientific and technological innovation to maximize the benefits of mankind, minimize the loss of nature, and promote the sustainable development of our country.

Design/methodology/approach

By using DEA-Banker-Charnes-Cooper (BCC) model and DEA-Malmquist model, this paper comprehensively examines the innovation efficiency of high-tech enterprises from both static and dynamic perspectives, and conducts a provincial comparative study with the panel data of ten representative provinces from 2011 to 2020.

Findings

The research findings are as follows: the rapid number increase of high-tech enterprises in most provinces (cities) is accompanied by an ineffective input–output efficiency; the quality of high-tech enterprises needs to comprehensively examine both input–output efficiency and total factor productivity; and there is not a positive correlation between element investment and innovation performance.

Research limitations/implications

Because the DEA model used in this paper assumes that the improvement direction of invalid units is to ensure that the input ratio of various production factors remains unchanged but sometimes the proportion of scientific and technological activities personnel and the total research and development investment is not constant. In the future, the nonradial DEA model can be considered for further research. Due to historical data statistics, more provinces, cities and longer panel data are difficult to obtain. The samples studied in this paper mainly refer to the provinces and cities that ranked first in the number of national high-tech enterprises in 2020. Limited by the number of samples, DEA analysis failed to select more input and output indicators. In the future, with the accumulation of statistical data, the existing efficiency analysis will be further optimized.

Originality/value

Aiming at the misunderstanding of emphasizing quantity and neglecting quality in the cultivation of high-tech enterprises, this paper comprehensively uses DEA-BCC model and DEA Malmquist index decomposition method to make a comprehensive comparative study on the development of high-tech enterprises in ten representative provinces (cities) from two aspects of static efficiency evaluation and dynamic efficiency evaluation.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2071-1395

Keywords

Open Access
Article
Publication date: 30 October 2019

Ignacio Jiménez-Hernández, Gabriel Palazzo and Francisco Javier Sáez-Fernández

The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm).

4717

Abstract

Purpose

The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm).

Design/methodology/approach

In a first stage, data envelopment analysis (DEA) and conditional efficiency analysis techniques are used to assess the relative efficiency level of 409 banks for the 2014-2016 period. The conditional efficiency approach considers environmental variables (that are beyond the manager’s control), which could influence the shape and the level of the boundary of the attainable set. In the second stage, the resulting conditional efficiency scores are correlated with internal variables (those that are under the manager’s control), which might affect the distribution of the inefficiencies. For this purpose, an econometric approach developed by Simar and Wilson (2007) is used.

Findings

First stage scores reveal the heterogeneity of average efficiency within the region. Regarding the factors that may explain the differences in performance in the LatAm banking sector, the results allow us to state that certain internal variables such as bank size, the ratio of loans to total assets and the ratio of non-performing loans show the expected relationship to efficiency, in line with much of the previous literature.

Originality/value

This is the first time that conditional efficiency and Simar and Wilson (2007) approaches have been applied at the same time to analyse the LatAm banking industry.

Details

Applied Economic Analysis, vol. 27 no. 81
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 30 April 2015

Zhen Gong and Tae Seung Kim

This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of…

Abstract

This paper uses various Data Envelopment Analysis (SBM-DEA) approaches to study the efficiency of major airlines in Asia-Pacific region. To evaluate the operation efficiency of fourteen major airlines in Asia-Pacific region from 2003-2011, Available Seat Kilometers(ASK), Available Ton Kilometers(ATK), the number of employees are used as input factors, Revenue Passenger Kilometers(RPK), Revenue Ton Kilometers(RTK), the amount of Sales are used as output factors.

The non-radial SBM-DEA (Slacks-based Measure of Efficiency) model was able to provide a more comprehensive efficiency of combining economic performance and regional difference. And it was also able to capture slack values in input excess and output shortage.

The results demonstrate that Korea and Japan airlines are operated efficiently and could be regarded as the benchmarking airlines. On the other hand, most of the China and ASEAN airlines are deemed to be inefficient. Also analyzing slacks may be more suitable way for the evaluation or suggestion of an improvement scheme for the inefficient airlines. The excess of labor is the major cause of the airlines’ inefficiency.

Details

Journal of International Logistics and Trade, vol. 13 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

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