Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis

This paper asseses the efficiency of the State-Owned Enterprise (SOE) in Asia-Pacific and European regions by adapting a non-parametric analysis, Data Envelopment Analysis (DEA) to compute technical efficiency (TE). There are two TE models available namely constant returns-to-scale (CRS) and Variabl...

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Published in:Cogent Business and Management
Main Author: Adnan S.; Zainal N.; Amin Noordin B.A.; Kamarudin F.; Johari J.
Format: Article
Language:English
Published: Cogent OA 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85185328298&doi=10.1080%2f23311975.2024.2306657&partnerID=40&md5=9522fe63aa43700c520765ad9a6a14ee
id 2-s2.0-85185328298
spelling 2-s2.0-85185328298
Adnan S.; Zainal N.; Amin Noordin B.A.; Kamarudin F.; Johari J.
Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis
2024
Cogent Business and Management
11
1
10.1080/23311975.2024.2306657
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85185328298&doi=10.1080%2f23311975.2024.2306657&partnerID=40&md5=9522fe63aa43700c520765ad9a6a14ee
This paper asseses the efficiency of the State-Owned Enterprise (SOE) in Asia-Pacific and European regions by adapting a non-parametric analysis, Data Envelopment Analysis (DEA) to compute technical efficiency (TE). There are two TE models available namely constant returns-to-scale (CRS) and Variable Return to Scale (VRS). The VRS has comforted the CRS model, which brings to an assumption that not all DMU operates at optimal scale. This model is able to decompose TE into two; i.e. Pure Technical Efficiency (PTE) and Scale Efficiency (SE. Therefore this investigation abides VRS by computing TE, PTE and SE on 170 SOEs in both economies countries for the period of 2010–2017. It is initially looking at the yearly efficiency trends as a measurement towards the ability of SOEs to produce the maximum output from a given set of inputs or, the ability to reduce inputs to produce the same amount of output over a certain period of time. It has discovered that SOE in emerging economies countries exhibit significantly higher TE in comparison to SOE in advanced economies countries. This study also reveals that PTE (managerial inefficiency) is the root cause of SOE’s under-achievements in both economies countries. © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
Cogent OA
23311975
English
Article

author Adnan S.; Zainal N.; Amin Noordin B.A.; Kamarudin F.; Johari J.
spellingShingle Adnan S.; Zainal N.; Amin Noordin B.A.; Kamarudin F.; Johari J.
Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis
author_facet Adnan S.; Zainal N.; Amin Noordin B.A.; Kamarudin F.; Johari J.
author_sort Adnan S.; Zainal N.; Amin Noordin B.A.; Kamarudin F.; Johari J.
title Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis
title_short Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis
title_full Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis
title_fullStr Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis
title_full_unstemmed Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis
title_sort Measuring technical efficiency of state-owned enterprises in Asia Pacific and European regions: a data envelopment analysis
publishDate 2024
container_title Cogent Business and Management
container_volume 11
container_issue 1
doi_str_mv 10.1080/23311975.2024.2306657
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85185328298&doi=10.1080%2f23311975.2024.2306657&partnerID=40&md5=9522fe63aa43700c520765ad9a6a14ee
description This paper asseses the efficiency of the State-Owned Enterprise (SOE) in Asia-Pacific and European regions by adapting a non-parametric analysis, Data Envelopment Analysis (DEA) to compute technical efficiency (TE). There are two TE models available namely constant returns-to-scale (CRS) and Variable Return to Scale (VRS). The VRS has comforted the CRS model, which brings to an assumption that not all DMU operates at optimal scale. This model is able to decompose TE into two; i.e. Pure Technical Efficiency (PTE) and Scale Efficiency (SE. Therefore this investigation abides VRS by computing TE, PTE and SE on 170 SOEs in both economies countries for the period of 2010–2017. It is initially looking at the yearly efficiency trends as a measurement towards the ability of SOEs to produce the maximum output from a given set of inputs or, the ability to reduce inputs to produce the same amount of output over a certain period of time. It has discovered that SOE in emerging economies countries exhibit significantly higher TE in comparison to SOE in advanced economies countries. This study also reveals that PTE (managerial inefficiency) is the root cause of SOE’s under-achievements in both economies countries. © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
publisher Cogent OA
issn 23311975
language English
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