Industrial Engineering Journal ›› 2012, Vol. 15 ›› Issue (2): 41-47.

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Technical Efficiency Evaluation of Listed Logistics Companies by Using Stochastic Frontier Analysis

  

  1. School of Business Administration, South China University of Technology,Guangzhou 510640, China
  • Online:2012-04-30 Published:2012-05-17

Abstract: By using the stochastic frontier analysis model, dynamic technical efficiency is analyzed for eighteen listed logistics companies located in Shenzhen and Shanghai for the period from 2003 to 2009. Results show that the capital and management factors inputs, especially the capital have significant influence on output, which shows the effect of economies of scale. However, the impact of investment in human resources is rather weak and not statistically significant. In general, the overall technical efficiency of the 18 companies is fairly low and has a decreasing trend with a small rate. It also shows that the efficiency of transportation companies is obviously greater than those whose business is in the ports. Another finding is that the logistics companies technical efficiency is affected not only by regional economic factors, but also by their own management level. Based on the results, suggestions are given for technical efficiency improvement.

Key words: listed logistics company, stochastic frontier analysis(SFA), technical efficiency