Sains Malaysiana 50(7)(2021): 2095-2107

http://doi.org/10.17576/jsm-2021-5007-23

Data Envelopment Analysis and Panel Regression in Analysing Technical Efficiency and Its Determinants of the Palm Oil Products-Based Manufacturing Subsector

(Analisis Penyampulan Data dan Regresi Panel dalam Menganalisis Kecekapan Teknik dan Penentu bagi Subsektor Pembuatan Berasaskan Produk Sawit)

NOORASIAH SULAIMAN* & RAHMAH ISMAIL

Center for Sustainable and Inclusive Development, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 UKM Bangi, Selangor Darul Ehsan, Malaysia

Received: 7 January 2020/Accepted: 19 November 2020

ABSTRACT

This study measures the technical efficiency score of the manufacturing sector of the palm oil products-based subsector in Malaysia and investigates the major determinants that influence efficiency. Based on the Industrial Manufacturing Survey, this study explores the data from 2000 to 2015 over sixteen years, with a total of eleven subsectors of palm oil products-based. The first stage of the study is carried out with a data envelopment analysis (DEA) to calculate the technical efficiency score, which is considered a dependent variable. The second stage of the study uses a panel regression model to examine the determinants of efficiency comprise the variable capital-labour ratio, research and development, information communication technology, training, and skilled labour. The study findings show that most of the palm oil products-based subsectors are not operating efficiently. Skilled labour, technical and supervisory, and professional is one of the main determinants contributing to the efficiency level. The variable capital-labour ratio though significant, but harms the efficiency level. The moderating effects show that skilled technical and supervisory workers relatively affect the food industry’s efficiency larger than the non-food industry. Therefore, the industry still has room to improve efficiency by utilising input efficiently. Moreover, the efforts involve organisational management, equipped appropriate technology and related factors that will improve efficiency, increase productivity and competitiveness of palm oil products-based industries.

Keywords: Data Envelopment Analysis; determinants of efficiency; palm oil products-based manufacturing subsector; panel regression; technical efficiency

ABSTRAK

Kajian ini mengukur skor kecekapan teknik industri pembuatan berasaskan produk minyak sawit di Malaysia dan mengkaji penentu penting yang mempengaruhi tahap kecekapan tersebut. Berasaskan data Banci Industri Pembuatan, kajian ini meliputi tempoh enam belas tahun dari 2000 hingga 2015, melibatkan sebelas subsektor pembuatan berasaskan produk minyak sawit. Tahap pertama kajian menggunakan Analisis Penyampulan Data (DEA) bagi mengukur tahap kecekapan teknik. Skor kecekapan digunakan sebagai pemboleh ubah sandaran. Tahap kedua analisis menggunakan model regresi panel mengkaji faktor penentu bagi kecekapan, meliputi pemboleh ubah nisbah modal-buruh, penyelidikan dan pembangunan, teknologi maklumat dan komunikasi, latihan dan tenaga buruh mahir. Keputusan kajian menunjukkan sebahagian besar subsektor pembuatan berasaskan produk minyak sawit tidak beroperasi pada tahap cekap. Tenaga kerja mahir, iaitu teknikal dan penyeliaan dan profesional adalah penentu penting yang menyumbang kepada kecekapan. Pemboleh ubah nisbah modal-buruh walaupun signifikan, namun mempengaruhi tahap kecekapan secara negatif. Keputusan bagi kesan moderasi menunjukkan pekerja mahir teknikal dan penyeliaan secara relatif mempengaruhi tahap kecekapan industri makanan berasaskan produk minyak sawit adalah lebih besar daripada industri bukan makanan. Oleh itu, industri mempunyai potensi besar dalam meningkatkan tahap kecekapan dengan mengguna input dengan lebih efisien. Tambahan lagi, usaha tersebut melibatkan pelbagai aspek termasuk pengurusan organisasi, mengguna teknologi sesuai dan seumpamanya demi meningkatkan kecekapan, produktiviti dan daya saing industri berasaskan produk minyak sawit.

Kata kunci: Analisis Penyampulan Data; kecekapan teknik; penentu kecekapan; regressi panel; subsektor pembuatan berasaskan produk minyak sawit

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  *Corresponding author; email: rasiahs@ukm.edu.my