IDEAS home Printed from https://ideas.repec.org/a/hrs/journl/vxiiiy2021i2p135-148.html
   My bibliography  Save this article

Production And Marketing Efficiency Of Patchouli Oil Industry In Indonesia

Author

Listed:
  • E. ERNAWATI

    (Ph.D Scholar in Economics, Faculty of Economics and Business, Universitas Syiah Kuala (USK), Atsiri Research Center-Pusat Unggulan Iptek Perguruan Tinggi (ARC-PUIPT) Nilam Aceh, USK, Indonesia)

  • Raja MASBAR

    (Professor, Faculty of Economics and Business, Universitas Syiah Kuala (USK), Indonesia)

  • M. Shabri Abd. MAJID

    (Professor, Faculty of Economics and Business, Universitas Syiah Kuala (USK), Indonesia)

  • Abd. JAMAL

    (Associate Professor, Faculty of Economics and Business, Universitas Syiah Kuala (USK), Indonesia)

Abstract

This study aims to empirically measure and analyse the production and marketing efficiency of the patchouli oil industry in Aceh, Indonesia. The study uses primary data collected from 120 patchouli farmers and analysed using the Data Envelopment Analysis (DEA) approach. The results showed that, on average, the patchouli oil production and marketing efficiency levels were in the moderate-eficient and the low-efficient categories, respectively. The patchouli farmers have great opportunities to improve their production and marketing efficiency by optimising the use of proper inputs’ combinations and agricultural intensification technologies.

Suggested Citation

  • E. ERNAWATI & Raja MASBAR & M. Shabri Abd. MAJID & Abd. JAMAL, 2021. "Production And Marketing Efficiency Of Patchouli Oil Industry In Indonesia," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 135-148, June.
  • Handle: RePEc:hrs:journl:v:xiii:y:2021:i:2:p:135-148
    as

    Download full text from publisher

    File URL: http://www.rsijournal.eu/ARTICLES/December_2021/10.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alexandra MARTA-COSTA & Filipa TORRES-MANSO & Luís TIBÉRIO, 2012. "Sustainability Diagnosis Of An Agroforestry System," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 111-124, December.
    2. Bremmer, Johan & Oude Lansink, Alfons G.J.M. & Huirne, Ruud B.M., 2008. "The Impact of Innovation, Firm Growth and Perceptions on Technical and Scale Efficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 9(2).
    3. Byeongyong Paul Choi & Mary A. Weiss, 2005. "An Empirical Investigation of Market Structure, Efficiency, and Performance in Property‐Liability Insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 72(4), pages 635-673, December.
    4. O. V. Dovgal & M. V. Kravchenko & N. I. Demchuk & O. A. Odnoshevnaya & O.Y. Novikov & U. Y. Andrusiv & I. M. Lesik & I. R. Popadynets, 2017. "Methods Of Competitiveness Assessment Of Agricultural Enterprise In Eastern Europe," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 231-242, December.
    5. Abatania, Luke N. & Hailu, Atakelty & Mugera, Amin W., 2012. "Analysis of farm household technical efficiency in Northern Ghana using bootstrap DEA," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124211, Australian Agricultural and Resource Economics Society.
    6. SYAHRIL & Raja MASBAR & M. Shabri Abd. MAJID & Sofyan SYAHNUR, 2019. "Does Indonesia As The World Largest Palm Oil Producing Country Determine The World Crude Palm Oil Price Volatility?," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 93-104, June.
    7. Eleni PAPADOPOULOU & Christos PAPALEXIOU & Nikolaos HASANAGAS, 2012. "Participatory Evaluation Of Rural Development Programmes: A Qualitative Approach In The Case Of Modernisation Of Agricultural Holdings In Greece," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 81-94, June.
    8. Ifigeneia-Dimitra POUGKAKIOTI & Constantinos TSAMADIAS, 2020. "Measuring The Efficiency And Productivity Change Of Municipalities:Empirical Evidence From Greek Municipalities Over The Time Period 2013-2016," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 55-74, June.
    9. Atici, Kazim Baris & Podinovski, Victor V., 2015. "Using data envelopment analysis for the assessment of technical efficiency of units with different specialisations: An application to agriculture," Omega, Elsevier, vol. 54(C), pages 72-83.
    10. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    11. Anastasia STRATIGEA, 2014. "Setting Policy Targets for the Future of Agriculture in Eu 2020 – A Methodological Approach," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 95-110, June.
    12. repec:hrs:journl:v:4:y:2012:i:2:p:111-124 is not listed on IDEAS
    13. Rajiv D. Banker & Ram Natarajan, 2008. "Evaluating Contextual Variables Affecting Productivity Using Data Envelopment Analysis," Operations Research, INFORMS, vol. 56(1), pages 48-58, February.
    14. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    15. G. Konstantinidis & T. Pelagidis, 2018. "Efficiency Measurement Of 6 Major Container Ports In The West Africa Region," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 63-76, June.
    16. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    17. Dariush Khezrimotlagh & Yao Chen, 2018. "Data Envelopment Analysis," International Series in Operations Research & Management Science, in: Decision Making and Performance Evaluation Using Data Envelopment Analysis, chapter 0, pages 217-234, Springer.
    18. Lee, Boon L. & Worthington, Andrew C., 2014. "Technical efficiency of mainstream airlines and low-cost carriers: New evidence using bootstrap data envelopment analysis truncated regression," Journal of Air Transport Management, Elsevier, vol. 38(C), pages 15-20.
    19. Fafurida FAFURIDA & Avi Budi SETIAWAN & Shanty OKTAVILIA, 2019. "Investment Improvement Efforts In The Agricultural Sector," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 49-57, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vivi Silvia & Sartiyah & Muhammad Raihan Fitra & Cut Nadira, 2023. "Determinant of Patchouli Production in Aceh Jaya Regency Aceh Province," Advances in Decision Sciences, Asia University, Taiwan, vol. 27(2), pages 99-121, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thanh Ngo & Kan Wai Hong Tsui, 2022. "Estimating the confidence intervals for DEA efficiency scores of Asia-Pacific airlines," Operational Research, Springer, vol. 22(4), pages 3411-3434, September.
    2. Chien-Ming Chen & Magali A. Delmas & Marvin B. Lieberman, 2015. "Production frontier methodologies and efficiency as a performance measure in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 19-36, January.
    3. Salas-Velasco, Manuel, 2018. "Production efficiency measurement and its determinants across OECD countries: The role of business sophistication and innovation," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 60-73.
    4. Cuccia, Tiziana & Guccio, Calogero & Rizzo, Ilde, 2016. "The effects of UNESCO World Heritage List inscription on tourism destinations performance in Italian regions," Economic Modelling, Elsevier, vol. 53(C), pages 494-508.
    5. da Silva, Aline Veronese & Costa, Marcelo Azevedo & Lopes, Ana Lúcia Miranda & do Carmo, Gabriela Miranda, 2019. "A close look at second stage data envelopment analysis using compound error models and the Tobit model," Socio-Economic Planning Sciences, Elsevier, vol. 65(C), pages 111-126.
    6. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    7. Valentin Zelenyuk, 2023. "Productivity analysis: roots, foundations, trends and perspectives," Journal of Productivity Analysis, Springer, vol. 60(3), pages 229-247, December.
    8. António Afonso & Ana Patricia Montes & José M. Domínguez, 2024. "Measuring Tax Burden Efficiency in OECD Countries: An International Comparison," CESifo Working Paper Series 11333, CESifo.
    9. Barros, Carlos Pestana & Williams, Jonathan, 2013. "The random parameters stochastic frontier cost function and the effectiveness of public policy: Evidence from bank restructuring in Mexico," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 98-108.
    10. Khanal, Aditya & Koirala, Krishna & Regmi, Madhav, 2016. "Do Financial Constraints Affect Production Efficiency in Drought Prone Areas? A Case from Indonesian Rice Growers," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230087, Southern Agricultural Economics Association.
    11. Shuji Yao & Zhongwei Han & Dan Luo, 2010. "Performance of the Chinese Insurance Industry under Economic Reforms," Books, Edward Elgar Publishing, number 12788.
    12. Noel Uri, 2003. "The Effect of Incentive Regulation in Telecommunications in the United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 37(2), pages 169-191, May.
    13. Mark A. Andor & David H. Bernstein & Stephan Sommer, 2021. "Determining the efficiency of residential electricity consumption," Empirical Economics, Springer, vol. 60(6), pages 2897-2923, June.
    14. Tovar, Beatriz & Wall, Alan, 2015. "Can ports increase traffic while reducing inputs? Technical efficiency of Spanish Port Authorities using a directional distance function approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 128-140.
    15. Doumpos, Michael & Hasan, Iftekhar & Pasiouras, Fotios, 2017. "Bank overall financial strength: Islamic versus conventional banks," Economic Modelling, Elsevier, vol. 64(C), pages 513-523.
    16. Ruwan Jayasuriya & Quentin Wodon, 2007. "Efficiency in Improving Health and Education Outcomes: Provincial and State-Level Estimates for Argentina and Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 22(1), pages 57-97.
    17. Omneya Abdelsalam & Sabur Mollah & Emili Tortosa‐Ausina & Ahmed A. El‐Masry, 2025. "Do political connections matter for bank efficiency in times of crisis?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 602-625, January.
    18. Suárez-Alemán, Ancor & Morales Sarriera, Javier & Serebrisky, Tomás & Trujillo, Lourdes, 2016. "When it comes to container port efficiency, are all developing regions equal?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 56-77.
    19. Otsuka, Akihiro, 2023. "Industrial electricity consumption efficiency and energy policy in Japan," Utilities Policy, Elsevier, vol. 81(C).
    20. Khezrimotlagh, Dariush, 2022. "Simulation designs for production frontiers," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1321-1334.

    More about this item

    Keywords

    Production efficiency; Marketing efficiency; Agricultural technology; DEA;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:xiii:y:2021:i:2:p:135-148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dimitrios K. Kouzas (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.