Analysis of Managerial Efficiency Among Agribusiness Firms in Abia State, Nigeria

Abstract

Abstract-This study assessed the managerial efficiency among agribusiness firms in Abia state, Nigeria with specific interest in analyzing their socio -economic characteristics, managerial efficiency levels and its determinants. Purposive sampling technique was used in the selection of locations and firms. Aba and Umuahia were selected given that most of the commercial firms are located. The study employed 50 firms on the basis of their investment value (less N5m).Descriptive statistics and stochastic frontier model were the analytical tools for the study. The result showed that majority of the firms were well established and managed by middle aged, sparingly literate and experienced managers with an appreciable income level and sizable household. The efficiency level of the managers was 0.62 on the average and managerial efficiency was found to be influenced positively by age of the firm, age, income, education of the managers. Efficiency was negatively affected by the household size of the managers. On the basis of the findings, the study suggested that periodic trainings and capacity building programs be organized for the managers to enhance their expertise and managerial competence.

Assessing Managerial Efficiency on Olive Farms in Greece

“…Of similar importance, however, is the identification of variables (other than Z), which may have an impact on the performance of management. In the relevant literature, this goal has been pursued using a variety of approaches ranging from simple linear regression models to non-parametric testing (for example, Wang et al, 2006;Latruffe et al, 2009;Nwachukwu et al, 2011;Shyu and Chiang, 2012). As there is no unified theoretical framework to guide selection, the variables with a potential influence on managerial efficiency have been chosen on the basis of past experience, intuition and data availability.…”

“…'Managerial efficiency' refers to the ability and effort of farm managers. In empirical studies, the influence of the operational environment and of managerial ability and effort on the performance of agricultural production units has typically been captured by regressing the technical efficiency estimates (obtained from non-parametric or parametric frontier models) on a number of variables representing the external environment of farms and human capital; these include factors such as age, formal education, gender and the number of years' experience in farming (Nwachukwu et al, 2011;Berkhout et al, 2010;Balcombe et al, 2008;Solano et al, 2006;Tzouvelekas et al, 2002a).…”