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Lai Wei Sieng
Universiti Kebangsaan Malaysia
Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

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Application of Two-Stage Data Envelopment Analysis (DEA) in Identifying the Technical Efficiency and Determinants in the Plastic Manufacturing Industry in Malaysia Muhamad Azhar Nor Sabli; Mohd Fahmy Abdullah; Lai Wei Sieng
International Journal of Supply Chain Management Vol 8, No 6 (2019): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (243.221 KB)

Abstract

This aim of this study is to measure the technical efficiency score and identify the factors that affect the technical efficiency in plastic manufacturing firm in Malaysia for the year 2015 using the two stage Data Envelopment Analysis (DEA) method. The first stage involves calculating the efficiency score through the DEA using firm-level data, provided by the Department of Statistics, Malaysia. In the second stage, Tobit Regression Analysis was used to identify the significant factors affecting the efficiency of the plastic industry. The determining factors are the labor-ratio, training expenses, educational level ratios, wage rates, information and communications technology expenses and firm size. The results show that average efficiency score is moderate rate. Information and communication technology (ICT) expenditure, wage rate, research and development expenditure and education level are significant factors of the efficiency factor of a plastic product manufacturing firm. The implication of this decision suggests that firms need to emphasize significant factors to enhance firms' efficiency.
Technical Efficiency of Soft Drink Manufacturing Industry in Malaysia Ahmad Izzat Mohd Idris; Mohd Fahmy Abdullah; Lai Wei Sieng
International Journal of Supply Chain Management Vol 8, No 6 (2019): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (243.5 KB)

Abstract

The previous studies on technical efficiency (TE) of the soft drinks industry in Malaysia are still under consideration from other industries and existing studies discuss the industry in general. In fact, there is a previous study using industry-level data and does not consider the determinants of technical inefficiency determining the TE level. The purpose of this study is to identify the technical efficiency level and the technical inefficiency of the soft drinks manufacturing industry in Malaysia by 2015 using cross-section data of 118 firms obtained from the Department of Statistics (DOS). Based on the analysis method of stochastic analysis (SFA), the results showed that the level of technical efficiency was high. As a result, inefficient technical analysis finds that salary rates reduce inefficiencies and the ratio of capital workers increases inefficiencies. The basic implication of this study is that soft drinks manufacturing firms need to increase motivation among employees and strengthen network market production through pay increases.
Determinants Factor of Technical Efficiency in Machinery Manufacturing Industry in Malaysia Muhammad Syafiq Abdul Latif; Mohd Fahmy Abdullah; Lai Wei Sieng
International Journal of Supply Chain Management Vol 8, No 6 (2019): International Journal of Supply Chain Management (IJSCM)
Publisher : International Journal of Supply Chain Management

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Abstract

Machinery manufacturing industry has been introduced since the beginning of the industrial era from European countries and developed until today. However, major challenges in machinery industry still driven by traditional production factors such as capital and labour that caused the industry still left out. Thus, the objective of the study are to analyse the level of TE and identifying determinant factors influenced to technical efficiency in the machinery manufacturing industry in Malaysia. The study was conducted by using the method of Data Envelopment Analysis (DEA) two stages. The first stage involves the calculation a score of efficiency through the DEA by using firm’s data while the second stage Regression Tobit Analysis used to identify significant factors influencing to technical efficiency in machinery industrial. This firm’s data are categorized into 3 sub-industry 3-digit according to the Malaysian Standard Industrial Classifications which are consists of Manufacture Of General Purpose Machinery, Manufacture Of Special Purpose Machinery and Manufacture Of Installation Machinery Industrial And Equipment. A total of 636 machinery industry firms were involved in this study. Results showed the average efficiency score is at the medium level while the determinant factors were significant are wage rates, the standard of education and research and development (RD). The implications of this study shows that the machinery industry should focus their attention to the significant factors to improve the level of technical efficiency of the machinery industry.
Co-Authors Ahmad Izzat Mohd Idris Mohd Fahmy Abdullah Muhamad Azhar Nor Sabli Muhammad Syafiq Abdul Latif