Title: Technical efficiency and decision to exit: evidence from the dairy farms in Sukabumi district, West Java, Indonesia

Authors: Maman Setiawan

Addresses: Department of Economics, Faculty of Economics and Business, University of Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Jawa Barat, Indonesia

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.

Keywords: dairy farms; technical efficiency; bootstrapped data envelopment analysis; decision to exit.

DOI: 10.1504/WREMSD.2019.102339

World Review of Entrepreneurship, Management and Sustainable Development, 2019 Vol.15 No.4, pp.428 - 440

Received: 04 May 2017
Accepted: 16 Jul 2017

Published online: 20 Sep 2019 *

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