The Eastasouth Management and Business
Vol. 1 No. 01 (2022): The Eastasouth Management and Business (ESMB)

Assessing technical efficiency of large and medium manufacturing industry in West Java Province, Indonesia: A data envelopment analysis approach

M. Mujiya Ulkhaq (Dipenogoro University)



Article Info

Publish Date
29 Sep 2022

Abstract

Technical efficiency of Indonesian manufacturing industry has been measured in several studies. However, there is limited study conducted in large and medium manufacturing industries context. This study, therefore, aims to analyze the technical efficiency of the large and medium manufacturing industries in West Java Province, Indonesia. Understanding the technical efficiency is important as firms with full technical efficiency, the less inputs they use, the larger output they achieve. Data envelopment analysis with output-oriented and variable returns-to-scale is used to accomplish the objective of this study. The output is measured by total output value, while the inputs are cost of labor, raw materials, fuel, electricity, and gas, representation and royalty, fixed capital, as well as industrial service. Result shows that among twenty-four decision-making units under-investigated, nine of them are considered as the most efficient.

Copyrights © 2022






Journal Info

Abbrev

esmb

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

ESMB - The Eastasouth Management and Business is a peer-reviewed journal and open access three times a year (March, July and November) published by Eastasouth Institute. ESMB aims to publish articles in the field of Strategic management, Operations management, Marketing and Sales, Supply chain and ...