Data Envelopment Analysis (Dea) Approach In Efficiency Transport Manufacturing Industry in Malaysia
Keywords:Data Envelopment Analysis, technical efficiency, transportation, manufacturing, industry
The objective of this study was to measure of technical efficiency, transport manufacturing industry in Malaysia score using the data envelopment analysis (DEA) from 2005 to 2010. The efficiency score analysis used only two inputs, i.e., capital and labor and one output i.e., total of sales. The results shown that the average efficiency score of the Banker, Charnes, Cooper - Variable Returns to Scale (BCC-VRS) model is higher than the Charnes, Cooper, Rhodes - Constant Return to Scale (CCR-CRS) model. Based on the BCC-VRS model, the average efficiency score was at a moderate level and only four sub-industry that recorded an average efficiency score more than 0.50 percent during the period study. The implication of this result suggests that the transport manufacturing industry needs to increase investment, especially in human capital such as employee training, increase communication expenses such as ICT and carry out joint ventures as well as research and development activities to enhance industry efficiency.
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