Technical efficiency and decision to exit: evidence from the dairy farms in Sukabumi district, West Java, Indonesia. (20th September 2019)

• Record Type: Journal Article
• Authors: Setiawan, Maman
• Is Part Of: World review of entrepreneurship, management and sustainable development. Volume 15:Number 4(2019)
• Page Start: 428
• Page End: 440
• Publication Date: 2019-09-20
• Subjects: dairy farms -- technical efficiency -- bootstrapped data envelopment analysis -- decision to exit; Sustainable development -- Periodicals; Entrepreneurship -- Periodicals; 338.04
• Languages: English
• ISSNs: 1746-0573

Abstract

This research investigates technical efficiency and its effect on the decision to exit of the dairy farms in Sukabumi district, West Java, Indonesia. Farm-level data obtained from survey are used to estimate the technical efficiency using a bootstrapped data envelopment analysis. The results show that dairy farms in Sukabumi are technically inefficient. The technical efficiency also has a negative effect on the decision to exit. This implies that the dairy farms with higher technical efficiency scores tend to have lower probabilities to exit from the business.