Safiyuddin, Fatin Syazwani and Abd Wahab, Norazlina and Maamor, Selamah (2019) Examining the Efficiency of Co-operatives in Malaysia: An Application of Data Envelopment Research. Test Engineering and Management, 81 (11-12). pp. 3989-4000. ISSN 01934120

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Abstract

The study examines the technical efficiency, pure technical efficiency, and scale efficiency of co-operatives in Malaysia. Data of co-operatives listed in 100 best Malaysian co-operatives from 2010 to 2017wasanalyzed. To construct the efficiency model forthe co-operatives, this studyemployed Data Envelopment Analysis (DEA). In DEA,one input (total assets) and two outputs (net income and dividend)were utilized. The results indicate that Malaysian co-operatives exhibited 62.3% overall technical efficiency during the study period where scale efficiency dominated the overall technical efficiency. Hence, we can suggest that Malaysian co-operatives had been performing better because of the scale of its operation instead of good managerial performance.The result also shows that most co-operatives were operating at non-CRS so that co-operatives need to make improvement in order to recover overall efficiency if pure technical inefficiency lead to the pure technical inefficient co-operatives could be undertaken.The result also demonstrates that scale efficiency (SE) dominated pure technical efficiency (PTE), which means that the scale and size of co-operatives are significant in raising the level of scale efficiency.The management of co-operatives in Malaysia should enhance their managerial performance because the PTE was found to contribute less to overall technical efficiency (OTE)

Item Type:	Article
Uncontrolled Keywords:	co-operatives, data envelopment analysis, pure technical efficiency, scale efficiency, technical efficiency
Subjects:	H Social Sciences > HG Finance
Divisions:	Islamic Business School
Depositing User:	Mr. Izhar Hj. Hashim
Date Deposited:	29 Oct 2025 11:28
Last Modified:	29 Oct 2025 11:28
URI:	https://repo.uum.edu.my/id/eprint/32541

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