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Does Managerial Ability Really Drive Cost Efficiency? Evidence from Broiler Businesses

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  • Raymond K. Dziwornu

Abstract

This paper ascertains whether managerial ability really drives cost efficiency of broiler businesses. Data was collected from 354 broiler businesses in Ghana and analysed using a modified stochastic Cobb–Douglas cost frontier and inefficiency effect models in a single‐stage maximum likelihood estimation procedure. Results indicate that managerial abilities such as technical advice, age and experience acquired through full‐time farming and increased batches significantly drive cost efficiency. This highlights the need to provide more technical advice and implement periodic capacity building programmes to develop the managerial ability and competences of broiler producers. The youth should also be encouraged and supported through skills development fund to go into full‐time broiler business to produce more batches. Copyright © 2016 John Wiley & Sons, Ltd.

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  • Raymond K. Dziwornu, 2017. "Does Managerial Ability Really Drive Cost Efficiency? Evidence from Broiler Businesses," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(6), pages 731-741, September.
    • Handle: RePEc:wly:mgtdec:v:38:y:2017:i:6:p:731-741
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    Cited by:

    1. Ummad Mazhar, 2021. "Terrorism Risk and the Mediating Role of Manager Experience: Empirical Evidence," Asian Economic Journal, East Asian Economic Association, vol. 35(3), pages 317-337, September.
    2. Puspita Ghaniy Anggraini & Mahfud Sholihin, 2023. "What do we know about managerial ability? A systematic literature review," Management Review Quarterly, Springer, vol. 73(1), pages 1-30, February.

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