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

Suraya Adnan, Nurazilah Zainal, Bany Ariffin Amin Noordin, Fakarudin Kamarudin and Jalila Johari

Cogent Business & Management, 2024, vol. 11, issue 1, 2306657

Abstract: 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.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2024.2306657 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:11:y:2024:i:1:p:2306657

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2024.2306657

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().