On productivity performance gains of Indonesian firms
Null Viverita and
Managerial Finance, 2008, vol. 34, issue 9, 644-659
Purpose - The purpose of this paper is to develop a methodology to study profit vs non-profit seeking firms usefully to compare corporate performance. It aims to apply the methodology to measure if state vs non-state firms with different objectives are comparable in performance. If relevant, the paper also aims to comment on the applicability of this method to analysis of other firms, e.g. Islamic banks in Indonesia. Design/methodology/approach - The paper applies Malmquist data envelopment analysis method to different classes of firms: state vs non-state firms; aggregated at the industry and at national levels; and develop appropriate time trend analysis as well. Research limitations/implications - This study overturns findings of many accounting performance based studies and revisits policy implications. Practical implications - No one policy fits all in Indonesia for privatization programme. Originality/value - The paper provides more valid methodology to compare state firms with non-state firms for the first time.
Keywords: Productivity rate; Process efficiency; Small enterprises; Business performance; Privatization; Indonesia (search for similar items in EconPapers)
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