Research Article
Inefficiency of Indonesian Food and Beverage Firms
@INPROCEEDINGS{10.4108/eai.1-10-2020.2304707, author={Suyanto Suyanto and Yenny Sugiarti and Olivia Tanaya}, title={Inefficiency of Indonesian Food and Beverage Firms}, proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2021}, month={4}, keywords={technical inefficiency food and beverage firms indonesian manufacturing export foreign-ownership}, doi={10.4108/eai.1-10-2020.2304707} }- Suyanto Suyanto
Yenny Sugiarti
Olivia Tanaya
Year: 2021
Inefficiency of Indonesian Food and Beverage Firms
ICEBE
EAI
DOI: 10.4108/eai.1-10-2020.2304707
Abstract
This study examines the technical inefficiency of Indonesian food and beverage firms. It also analyzes the impact of four pivotal determinants on technical inefficiency. The one-step technical efficiency model is applied to calculate the inefficiency scores of a set of unique 1,874 firms. The novelty of this study is on the homogeneity of firms under study and the additional of trade variables in the model. The findings show that the average score of technical inefficiency of Indonesian food and beverage firms is 1.52 percent. The estimation results on the key factors contributing to the inefficiency show that export, import, foreign ownership, and location are important factors in reducing the inefficiency score of firms, respectively.
