Factors Affecting Technical Efficiency of Textiles Community Enterprises in Chaloem Phra Kiat and Na Pho Districts, Buriram Province, Thailand
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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
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