Factors Affecting Technical Efficiency of Textiles Community Enterprises in Chaloem Phra Kiat and Na Pho Districts, Buriram Province, Thailand
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Published
Apr 16, 2020
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Abstract
This study aims to study technical efficiencies and factors affecting technical efficiency of 29 textiles community enterprises in Chaloem Phra Kiat and Na Pho Districts, Buriram Province. Population of this study are three members each from 29 enterprises groups: one leader and two members, 87 people in total. Data Envelopment Analysis (DEA) performance was used to explain Input-Oriented; i.e. Machine Value, Members of Enterprise Group, Value of Main Materials and Production Cost, and Total Income being the Output under the assumption of Variable Return to Scale (VRS). Analysis of factors affecting technical efficiency of textile community enterprises was explained by Tobit Model. The result showed that 70% of the textile enterprises in Chaloem Phra Kiat and Na Pho Districts, Buriram Province currently faced technical inefficiency due to inappropriate resource allocations. Factors affecting technical efficiency are proportion of capital per labor, location, leader’s experience and types of product. This study can benefit the textile community enterprises as guidelines for improving production and management for higher efficiency in future.
Keywords: Technical Efficiency, Data Envelopment Analysis (DEA), Textiles Community Enterprises, Tobit Model
References
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Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some Models for Estimating of Technical and Scale Inefficiencies in Data Envelopment Analysis. Management Science, 30(9), 1078-1092.
Bayarsaihan, T., Battese, G. E., & Coelli, T. J. (1998). Productivity of Mongolian Grain Farming: 1976-1989 (CEPA Working Papers No. 2/98). Armidale: Department of Econometrics, University of New England.
Chakraborty, K., & Mohapatra, S. (1997). Dynamic Productivity, Efficiency and Technical Innovation: A Mathematical Programming Approach Using Data Envelopment Analysis (Economic Research Institute Study Paper No. 97-08). Logan: Department of Economics, Utah State University.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the Efficiency of Decision Making Units. European Journal of Operational Research, 2(6), 429-444. https://doi.org/10.1016/0377-2217(78)90138-8
Chitkrua, T. (1980). Quantitative Analysis of Efficiency: A Case Study of the Thai Textile Industry. (Master’s thesis). Faculty of Economics, Thammasat University, Bangkok.
Farrell, M. J. (1957). The Measurement of the Productive Efficiency. Journal of the Royal Statistical Society, Series A (General), 120(3), 253-290.
Goldberger, A. S. (1964). Econometric Theory. Hoboken, New Jersey: John Wiley & Sons.
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Kapelko, M. (2011). Application of DEA Model with Bootstrap to Evaluation of SMEs Efficiency in the Spanish Textile Industry. Multiple Criteria Decision Making, 6, 133-148.
Lateh, A., Pasunon, P., Tragantalerngsak, S., & Nilakorn, P. (2007). Mathematical Programming for Operational Efficiency Measurement of Southern University Libraries. Journal of Science and Technology, 15(1), 100-110.
National Statistical Office Thailand. (2018a). The 2017 Household Socio-Economic Survey whole Kingdom. Retrieved from http://social.nesdb.go.th/SocialStat/StatReport_Final.aspx?reportid=1339&template=1R1C&yeartype=M&subcatid=80
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Nittayakamolphun, P., & Chancharat, N. (2014). Factors Affecting Technical Efficiency of SMEs in Textiles Industry in Northeastern Region of Thailand. Journal of Economics and Management Strategy, 1(2), 63-75.
Noiphant, W. (2008). Financial Ratio Indicators for Textile Industrial Failure Model. (Master’s independent study). Thammasat University, Bangkok, Thailand.
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Tobin, J. (1958). Estimation of Relationships for Limited Dependent Variables. Econometrica, 26(1), 24-36. http://dx.doi.org/10.2307/1907382
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Vixathep, S., & Matsunaga, N. (2012). Firm Performance in a Transitional Economy: A Case Study of Vietnam’s Garment Industry. Journal of the Asia Pacific Economy, 17(1), 74-93. https://doi.org/10.1080/13547860.2012.640002
Wai Kee, T. (1979). Efficiency and Firm-Size a Case Study of the Textile Industry in Hong Kong. (Master’s thesis). Thammasat University, Bangkok, Thailand.
Waldo, S. (2000). Municipalities as Educational Producers-An Efficiency Approach (Working Paper). Sweden: Department of Economics, Lund University.
Wiboonpongse, A. (2006). Applied Econometrics for Agricultural Marketing (2nd ed.). Chiang Mai: Faculty of Agriculture, Chiang Mai University.
Yodsri, I. (2008). Technical Efficiency of Textiles Industry. Bangkok: Office of Industrial Economics.
Atthirawong, W., & Leerojanaprapa, K. (2016). Performance Measurement and Efficiency Improvement for the Preparation of Textile Fiber Manufacturers Using Data Envelopment Analysis (DEA). Thai Journal of Operations Research: TJOR, 4(1), 38-48. Retrieved from https://www.tci-thaijo.org/index.php/TJOR/article/view/60990
Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some Models for Estimating of Technical and Scale Inefficiencies in Data Envelopment Analysis. Management Science, 30(9), 1078-1092.
Bayarsaihan, T., Battese, G. E., & Coelli, T. J. (1998). Productivity of Mongolian Grain Farming: 1976-1989 (CEPA Working Papers No. 2/98). Armidale: Department of Econometrics, University of New England.
Chakraborty, K., & Mohapatra, S. (1997). Dynamic Productivity, Efficiency and Technical Innovation: A Mathematical Programming Approach Using Data Envelopment Analysis (Economic Research Institute Study Paper No. 97-08). Logan: Department of Economics, Utah State University.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the Efficiency of Decision Making Units. European Journal of Operational Research, 2(6), 429-444. https://doi.org/10.1016/0377-2217(78)90138-8
Chitkrua, T. (1980). Quantitative Analysis of Efficiency: A Case Study of the Thai Textile Industry. (Master’s thesis). Faculty of Economics, Thammasat University, Bangkok.
Farrell, M. J. (1957). The Measurement of the Productive Efficiency. Journal of the Royal Statistical Society, Series A (General), 120(3), 253-290.
Goldberger, A. S. (1964). Econometric Theory. Hoboken, New Jersey: John Wiley & Sons.
Greene, W. H. (2002). Econometric Analysis (5th ed.). Upper Saddle River, New Jersey: Pearson Education. Retrieved from https://spu.fem.uniag.sk/cvicenia/ksov/obtulovic/Mana%C5%BE.%20%C5%A1tatistika%20a%20ekonometria/EconometricsGREENE.pdf
Kapelko, M. (2011). Application of DEA Model with Bootstrap to Evaluation of SMEs Efficiency in the Spanish Textile Industry. Multiple Criteria Decision Making, 6, 133-148.
Lateh, A., Pasunon, P., Tragantalerngsak, S., & Nilakorn, P. (2007). Mathematical Programming for Operational Efficiency Measurement of Southern University Libraries. Journal of Science and Technology, 15(1), 100-110.
National Statistical Office Thailand. (2018a). The 2017 Household Socio-Economic Survey whole Kingdom. Retrieved from http://social.nesdb.go.th/SocialStat/StatReport_Final.aspx?reportid=1339&template=1R1C&yeartype=M&subcatid=80
National Statistical Office Thailand. (2018b). The 2017 Industrial Census: Northeastern Region. Retrieved from http://service.nso.go.th/nso/web/census/bussindustry.html
Nauly, Y. D. (2012). The Impact of Import Competition on Efficiency of Textile Industry and Apparel Industry in Indonesia. Journal of Asia Pacific Studies, 2(3), 347-373.
Nittayakamolphun, P. (2013). The Measurement of Efficiency of SMEs in Textiles Industry in the Northeastern Region of Thailand. (Master’s thesis). Khon Kaen University, Khon Kaen, Thailand.
Nittayakamolphun, P., & Chancharat, N. (2014). Factors Affecting Technical Efficiency of SMEs in Textiles Industry in Northeastern Region of Thailand. Journal of Economics and Management Strategy, 1(2), 63-75.
Noiphant, W. (2008). Financial Ratio Indicators for Textile Industrial Failure Model. (Master’s independent study). Thammasat University, Bangkok, Thailand.
Phisalayabut, N., & Satchachai, P. (2012). A Comparative Study of the Efficiency of Thai Industries in Comparison with Their Corresponding Leading World Industries. Bangkok: The Thailand Research Fund.
Provincial Community Development Department Office of Buriram. (2018, July 2). Basic Information in Village Standard. Retrieved from http://buriram.cdd.go.th/
Suebpongsakorn, A. (2011). The Measurement of Technical and Scale Efficiency of the Life Insurance Companies in Thailand. Chiang Mai University Journal of Economics, 15(2), 84-114.
Thailand Textile Institute. (2018). Creating Value-Added Products Using Innovation for Isan Textile Products. Bangkok: Thailand Textile Institute.
Tobin, J. (1958). Estimation of Relationships for Limited Dependent Variables. Econometrica, 26(1), 24-36. http://dx.doi.org/10.2307/1907382
Trade Policy and Strategy, Office of the Permanent Secretary for Public Health. (2017). Population in 2016. Retrieved from http://bps.moph.go.th/new_bps/sites/default/files/Mid%20Population%202559.pdf
Untong, A. (2004). DEAP 2.1 Manual for Performance Analysis with Data Envelopment Analysis Method. Chiang Mai: Social Research Institute, Chiang Mai University.
Untong, A., & Kaosa-ard, M. (2014). Spas Performances Benchmarking and Operation Efficiency. Applied Economics Journal, 21(1), 1-19.
Vixathep, S., & Matsunaga, N. (2012). Firm Performance in a Transitional Economy: A Case Study of Vietnam’s Garment Industry. Journal of the Asia Pacific Economy, 17(1), 74-93. https://doi.org/10.1080/13547860.2012.640002
Wai Kee, T. (1979). Efficiency and Firm-Size a Case Study of the Textile Industry in Hong Kong. (Master’s thesis). Thammasat University, Bangkok, Thailand.
Waldo, S. (2000). Municipalities as Educational Producers-An Efficiency Approach (Working Paper). Sweden: Department of Economics, Lund University.
Wiboonpongse, A. (2006). Applied Econometrics for Agricultural Marketing (2nd ed.). Chiang Mai: Faculty of Agriculture, Chiang Mai University.
Yodsri, I. (2008). Technical Efficiency of Textiles Industry. Bangkok: Office of Industrial Economics.
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Research Articles
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How to Cite
NITTAYAKAMOLPHUN, Pitipat.
Factors Affecting Technical Efficiency of Textiles Community Enterprises in Chaloem Phra Kiat and Na Pho Districts, Buriram Province, Thailand.
Journal of Community Development Research (Humanities and Social Sciences), [S.l.], v. 13, n. 2, p. 70-82, apr. 2020.
ISSN 2985-0231.
Available at: <https://www.journal.nu.ac.th/JCDR/article/view/Vol-13-No-2-2020-70-82>. Date accessed: 23 apr. 2024.
doi: https://doi.org/10.14456/jcdr-hs.2020.16.