scholarly journals Efficiency Assessment of Transport Manufacturing Firms using a Stochastic Frontier Analysis Approach

2021 ◽  
Vol 50 (8) ◽  
pp. 2445-2453
Author(s):  
Ammar Fikree Mohamed Jofree ◽  
Norayati Hashim ◽  
Fahmy-Abdullah Mohd ◽  
Wei Sieng Lai ◽  
Sulhi Ridzuan
Keyword(s):  
Information And Communication Technology ◽  
Communication Technology ◽  
Stochastic Frontier Analysis ◽  
Hypothesis Test ◽  
Stochastic Frontier ◽  
Manufacturing Firms ◽  
Frontier Analysis ◽  
Wage Rates ◽  
Capital Labor Ratio ◽  
Information And Communication

This paper aims to analyze the level of technical efficiency and determinants of technical inefficiency of transport manufacturing firms in Malaysia using Stochastic Frontier Analysis (SFA) approach from 2005 to 2010. Through SFA approach, hypothesis test is conducted in order to select Cobb-Douglas or Translog production function and testing the effects of technical inefficiencies. While the determining factors that been taken into account include the capital-labor ratio, training expenses, education level ratio, wage rate, information and communication technology expenditure, and firm size. Hypothesis test results show that the Cobb-Douglas production function is rejected. While the test for the effect of technical inefficiency shows its existence. Training expenses, secondary and tertiary education level ratios, wage rates and information and communication technology expenses are significant determinants for transportation manufacturing firms. However, the capital-labor ratio was found that it has reduced the level of technical efficiency. The implications of these results show that firms need to focus on investing in human capital, information technology and increase motivation among employees such as rising wage rates and reducing the use of capital appropriate to the technology.

Overlapping certification and technical efficiency of ICT convergence companies in South Korea

2020 ◽  
Author(s):  
Kyunam Kim ◽  
Chung Choe ◽  
Daeho Lee
Keyword(s):  
South Korea ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Frontier Analysis ◽  
Innovation Activities ◽  
Policy Goals ◽  
Information And Communication ◽  
Technology Convergence ◽  
Certification Type

Abstract Since the late 1990s, in South Korea, two innovation certification policies—InnoBiz and Venture certifications—have fostered the innovation activities of venture companies and small- to medium-sized enterprises.The two certifications, however, share similar features in their policy goals, targets, and main content. This study aims to evaluate how technical efficiencies of firms differ based on the types of innovation certifications it achieves and examine the result when a firm simultaneously achieves overlapping certifications. We classified information and communication technology convergence firms into four different groups by certification type and evaluated their performance based on technical efficiency (TE) by applying stochastic frontier analysis and meta-frontier analysis. Our results show that the meta-frontier TE of the group with overlapping certifications is lower than that of the group with a single certification, implying that there is no remarkable performance improvement in terms of the efficiency, particularly when certifications sharing similar characteristics are implemented.

scholarly journals Information and Communication Technology-Enabled Modern Services Export Performances of Asian Economies

2016 ◽  
Vol 33 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Shahbaz Nasir ◽  
Kaliappa Kalirajan
Keyword(s):  
Information And Communication Technology ◽  
Communication Technology ◽  
Emerging Economies ◽  
Stochastic Frontier ◽  
High Performing ◽  
Developed Economies ◽  
Asian Economies ◽  
Information And Communication ◽  
Ict Infrastructure ◽  
Modern Services

Advancements in information and communication technology (ICT) have expanded the possibilities for trade in modern services. Many emerging and developed Asian economies are increasingly participating in these new trade activities. This study examines the export performances of emerging and developed Asian economies in selected modern services—computer and information, business and professional, and telecommunications—using a stochastic frontier gravity model. Estimation results show that the performances of emerging economies in South Asia and the Association of Southeast Asian Nations (ASEAN), in terms of realization of export potential, are considerably weaker than those of developed economies in North America and Europe. The results show that the number of graduates and the quality of ICT infrastructure in emerging economies are among the key factors in realizing services export potential. These findings suggest that emerging economies need to remove behind-the-border constraints and adopt advanced technologies to catch up with high-performing developed economies.

scholarly journals R&D, Marketing, Strategic Planning, or Human Resources? Which CEO Career Is Most Helpful for the Economic Sustainability of ICT Startups in South Korea?

2021 ◽  
Vol 13 (5) ◽  
pp. 2729 ◽  
Author(s):  
Hongbum Kim ◽  
Yuri Jo ◽  
Daeho Lee
Keyword(s):  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Market Performance ◽  
Chief Executive ◽  
Chief Executives ◽  
Frontier Analysis ◽  
Information And Communication ◽  
Ict Industry ◽  
Functional Experience ◽  
Frontier Efficiency

The market performance of a company is greatly influenced by the functional experience of the chief executive. In the case of a small startup, the functional experience of the chief executive is even greater. Based on career data of chief executives, this study first classifies startups in the information and communication technology (ICT) industry into four different groups. In addition, this study analyzes the effect of the CEO’s experience on the market performance of ICT startups by deriving the efficiency of each company using the financial data of ICT startups provided in the database. This study estimates the technical efficiency of each group using stochastic frontier analysis and then uses meta-frontier analysis to compare the efficiency of different groups. As a result, the CEO group with a career in strategy and planning showed the highest meta-frontier efficiency, whereas the CEO group with a career in R&D showed the lowest.

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