Maman Setiawan and Alfons G.J.M. Oude Lansink
The purpose of this paper is to investigate the relation between industrial concentration and technical inefficiency in the Indonesian food and beverages industry using a dynamic…
Abstract
Purpose
The purpose of this paper is to investigate the relation between industrial concentration and technical inefficiency in the Indonesian food and beverages industry using a dynamic performance measure (dynamic technical inefficiency) that accounts for the presence of adjustment costs.
Design/methodology/approach
This research uses panel data of 44 subsectors in the Indonesian food and beverages industry for the period 1980-2014. The dynamic input directional distance function is applied to estimate the dynamic technical inefficiency. Further, the Granger causality between industrial concentration and dynamic technical inefficiency is tested using a dynamic panel data model. A bootstrap truncated regression model is finally applied to estimate the relation between industrial concentration and dynamic technical inefficiency based on the results from the Granger causality test.
Findings
The results show that the Indonesian food and beverages industry has a high dynamic technical inefficiency. Investigation of the causality of the relation shows that industrial concentration has a positive effect on dynamic technical inefficiency at the subsector level, with no reversed causality. The results suggest that the quiet life hypothesis applies to the Indonesian food and beverages industry.
Originality/value
The literature investigating the relation between industrial concentration and performance relies on static measures of performance, such as technical efficiency. Static measures provide an incorrect metric of the firms’ performance in the presence of adjustment costs associated with investment. Therefore, this research has a contribution in measuring dynamic technical inefficiency that accounts for the presence of the adjustment cost as well as its relation with industrial concentration in the Indonesian food and beverages industry.
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Eliana Wulandari, Miranda P.M. Meuwissen, Maman H. Karmana and Alfons G.J.M. Oude Lansink
Access to finance is an important condition for the development of agriculture and the farms’ performance. The purpose of this paper is to analyse the association between the…
Abstract
Purpose
Access to finance is an important condition for the development of agriculture and the farms’ performance. The purpose of this paper is to analyse the association between the technical efficiency of horticultural farms and access to finance from different finance providers.
Design/methodology/approach
Data were collected from 434 farmers who produce mango, mangosteen, chili and red onion in Indonesia. Data were subsequently analysed using data envelopment analysis and bootstrap truncated regression.
Findings
The results show that commercial credit from banks and in-kind finance provided through farmers’ associations have a positive association with the technical efficiency of some types of horticultural farms. Commercial credit from micro finance institution and flexible payment of inputs to the agricultural input kiosk generally have negative associations, especially with the technical efficiency of mangosteen farms. Subsidised credit from banks and in-kind finance from traders have both positive and negative associations with the technical efficiency of the horticultural farms.
Originality/value
This study adds to the existing literature by analysing access to finance from a broader range of finance providers and its relation to technical efficiency.
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Nurul Aisyah Binti Mohd Suhaimi, Yann de Mey and Alfons Oude Lansink
The purpose of this paper is to measure the technical inefficiency of dairy farms and subsequently investigate the factors affecting technical inefficiency in the Malaysian dairy…
Abstract
Purpose
The purpose of this paper is to measure the technical inefficiency of dairy farms and subsequently investigate the factors affecting technical inefficiency in the Malaysian dairy industry.
Design/methodology/approach
This study uses multi-directional efficiency analysis to measure the technical inefficiency scores on a sample of 200 farm observations and single-bootstrap truncated regression model to define factors affecting technical inefficiency.
Findings
Managerial and program inefficiency scores are presented for intensive and semi-intensive production systems. The results reveal marked differences in the inefficiency scores across inputs and between production systems.
Practical implications
Intensive systems generally have lowest managerial and program inefficiency scores in the Malaysian dairy farming sector. Policy makers could use this information to advise dairy farmers to convert their farming system to the intensive system.
Social implications
The results suggest that the Malaysian Government should redefine its policy for providing farm finance and should target young farmers when designing training and extension programs in order to improve the performance of the dairy sector.
Originality/value
The existing literature on Southeast Asian dairy farming has neither focused on investigating input-specific efficiency nor on comparing managerial and program efficiency. This paper aims to fill this gap.
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Lusine H. Aramyan, Alfons G.J.M. Oude Lansink, Jack G.A.J. van der Vorst and Olaf van Kooten
Measurement of the performance of entire supply chains is an important issue because it allows for “tracking and tracing” of efficacy and efficiency failures and leads to more…
Abstract
Purpose
Measurement of the performance of entire supply chains is an important issue because it allows for “tracking and tracing” of efficacy and efficiency failures and leads to more informed decision making with regard to chain design. However, the choice of appropriate supply chain performance indicators is rather complicated due to the presence of multiple inputs and multiple outputs in the system. Therefore, this paper aims to evaluate the usefulness of a novel conceptual model for supply chain performance measurement in an agri‐food supply chain.
Design/methodology/approach
A conceptual model for integrated supply chain performance measurement is evaluated in a Dutch‐German tomato supply chain by means of a case study approach.
Findings
The proposed conceptual framework is found to be useful for measuring performance of the tomato supply chain. From the case study it is concluded that four main categories of performance measures (i.e. efficiency, flexibility, responsiveness, and food quality) are identified as key performance components of the tomato supply chain performance measurement system.
Originality/value
This research evaluates a novel concept for measuring the performance of agri‐food supply chains. This concept is the first step in developing an integrated performance measurement system that contains financial as well as non‐financial indicators combined with the specific characteristics of agri‐food supply chains. Based on a case study in the tomato supply chain, this concept is found to have potential.
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Hugo Santana de Figueiredo Junior, Miranda P. M. Meuwissen, Ivo A. Van der Lans and Alfons G. J. M. Oude Lansink
Development studies rarely measure the impact of value chain strategies on performance. The purpose of this paper is to quantify the perceived contribution of strategies to the…
Abstract
Purpose
Development studies rarely measure the impact of value chain strategies on performance. The purpose of this paper is to quantify the perceived contribution of strategies to the performance of three honey value chains in Brazil.
Design/methodology/approach
The value chain structure-conduct-performance (SCP) framework was used to select strategies and two performance indicators, honey production growth and local value-added. In a conjoint study, experts were asked to judge the contribution to the two performance indicators of several hypothetical combinations of value chain strategies.
Findings
According to the experts, adoption of specialised technical assistance, sharing resources at the production step, increase in exports, and organic certification were the strategies which contributed the most to performance. Simulations suggested that some honey value chains could have greatly increased their performance with these higher pay-off strategies.
Research limitations/implications
Quantifying the perceived impact of individual strategies contributes to improved evaluation of development interventions.
Practical implications
Outcomes also show that conjoint analysis is a useful method for policy evaluations in data scarce situations.
Originality/value
The paper combines an extended SCP framework for strategy selection and conjoint analysis for strategy evaluation of value chains.