Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Efficiency for Agro-Based Industrial Sub-Sector in Malaysia Using Data Envelopment Analysis (DEA)

Author(s): Siti Marsila Mhd Ruslan

This paper studies about the efficiency of seven sub-sectors involved in agro-based industry in Malaysia from year 1993-2003 (after 10 years of implementation of First National Agricultural Policy). The study is conducted using non-parametric analysis approach called Data Envelopment Analysis (DEA) to observe the efficiency trend throughout years and sectors. Based on the result, it has been found that the BCC model has shown a higher index of technical efficiency in all period compared to CCR model with the total average of 0.865 and 0.900. The performance scores based on the CCR model recorded lower values than the BCC efficiency value due to the BCC distance function which is closer to the production boundary than CCR. These causes the BCC yielded to a higher index as a ratio of input lines closer to the border and further increase the efficiency index.
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