How Efficient Are Malaysian Public Universities? A Comparative Analysis Using Data Envelopment Analysis

This paper aims to examine the efciency of Malaysian public universities in comparison with the private and foreign universities using Data Envelopment Analysis (DEA). The study involves 22 universities (17 public, 1 private and 4 foreign) and based on data between year 2008 and 2011. Results rev...

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Bibliographic Details
Main Authors: Eam, Lim Hock, Md. Taib, Fauziah, Hiau , Nur Adiana Abdullah, Yen , Siew Hwa
Format: Article
Language:English
Published: Asian Academy of Management (AAM) 2016
Subjects:
Online Access:http://eprints.usm.my/36675/1/aamj21022016_4.pdf
http://eprints.usm.my/36675/
http://web.usm.my/aamj/21022016/aamj21022016_4.pdf
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Summary:This paper aims to examine the efciency of Malaysian public universities in comparison with the private and foreign universities using Data Envelopment Analysis (DEA). The study involves 22 universities (17 public, 1 private and 4 foreign) and based on data between year 2008 and 2011. Results reveal that the most efcient Malaysian public universities are: University Malaya (among research universities); Universiti Teknologi Mara (among comprehensive universities) and Universiti Utara Malaysia (among focused universities). When these three most efcient Malaysian public universities are compared with the private university in Malaysia and another 4 foreign universities, they are found to be inefcient in income generation and in managing inputs which include the government operating grant. The plausible explanation could be associated with a long history of over-dependence on government grants that may have resulted in the public universities becoming too complacent. The study calls for mechanisms to re-strategise and to get these public universities to be more fnancially independent.