Browse > Article
http://dx.doi.org/10.17703//IJACT2018.6.4.292

The Effects of Human Resource Factors on Firm Efficiency: A Bayesian Stochastic Frontier Analysis  

Shin, Sangwoo (Solbridge International School of Business, Woosong University)
Chang, Hyejung (Department of Management, Kyung Hee University)
Publication Information
International Journal of Advanced Culture Technology / v.6, no.4, 2018 , pp. 292-302 More about this Journal
Abstract
This study proposes a Bayesian stochastic frontier model that is well-suited to productivity/efficiency analysis particularly using panel data. A unique feature of our proposal is that both production frontier and efficiency are estimable for each individual firm and their linkage to various firm characteristics enriches our understanding of the source of productivity/efficiency. Empirical application of the proposed analysis to Human Capital Corporate Panel data enables identification and quantification of the effects of Human Resource factors on firm efficiency in tandem with those of firm types on production frontier. A comprehensive description of the Markov Chain Monte Carlo estimation procedure is forwarded to facilitate the use of our proposed stochastic frontier analysis.
Keywords
Bayesian stochastic frontier analysis; Human resources; Human Capital Corporate Panel data; Markov Chain Monte Carlo;
Citations & Related Records
연도 인용수 순위
  • Reference
1 C.D. Fisher, "Current and recurrent challenges in HRM," Journal of Management, Vol. 15, No. 2, pp. 157-180, June 1989. doi: 10.1177/014920638901500203   DOI
2 G.E. Battese and T.J. Coelli, "Frontier production functions, technical efficiency and panel data with application to paddy fanners in India," Journal of Productivity Analysis, Vol. 3, No. 1/2, pp. 153-169, June 1992. doi: 10.1007/BF00158774   DOI
3 G.E. Battese and T.J. Coelli, "A model for technical inefficiency effects in a stochastic frontier production function for panel data," Empirical Economics, Vol. 20, No. 2, pp. 325-332, June 1995. doi: 10.1007/BF01205442   DOI
4 P.M. Wright and G.C. McMahan, "Theoretical perspectives for strategic human resource management," Journal of Management, Vol. 18, No. 2, pp. 295-320, June 1992. doi: 10.1177/014920639201800205   DOI
5 J.B. Arthur, "Effects of human resource systems on manufacturing performance and turnover," Academy of Management Journal, Vol. 37, No. 3, pp. 670-687, June 1994. doi: 10.5465/256705   DOI
6 J. Barney, "Firm resources and sustained competitive advantage," Journal of Management, Vol. 17, No. 1, 99-120, March 1991. doi: 10.1177/014920639101700108   DOI
7 A.A. Lado and M.C. Wilson, "Human resource systems and sustained competitive advantage: A competency-based perspective," Academy of Management Review, Vol. 19, No. 4, pp. 699-727, October 1994. doi: 10.5465/amr.1994.9412190216   DOI
8 C.J. Collins and K.D. Clark, "Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage," Academy of Management Journal, Vol. 46, No. 6, pp. 740-751, December 2003. doi: 10.2307/30040665   DOI
9 G. Koop, J. Osiewalski, and M.F.J. Steel, "Bayesian efficiency analysis with a flexible form: the AIM cost function," Journal of Business and Economic Statistics, Vol. 12, No. 3, pp. 339-346, July 1994. doi: 10.1080/07350015.1994.10524549   DOI
10 J. van den Broeck, G. Koop, J. Osiewalski, and M.F.J. Steel, "Stochastic frontier models: a Bayesian perspective," Journal of Econometrics, Vol. 61, No. 2, pp. 273-303, March 1994. doi: 10.1016/0304-4076(94)90087-6   DOI
11 G. Koop, J. Osiewalski, and M.F.J. Steel, "Bayesian efficiency analysis through individual effects: hospital cost frontiers," Journal of Econometrics, Vol. 76, No. 1/2, pp. 77-105, January-February 1997. doi: 10.1016/0304-4076(95)01783-6   DOI
12 G.M. Allenby and P.E. Rossi, "Hierarchical Bayes model." In R. Grover, and M. Vriens (Eds.), The handbook of marketing research: uses, misuses, and future advances (pp. 418-440). Thousand Oaks, CA: Sage, 2006
13 A.E. Gelfand and A.F.M. Smith, "Sampling-based approaches to calculating marginal densities," Journal of the American Statistical Association, Vol. 85, No. 410, pp. 398-409, June 1990. doi:   DOI
14 A.E. Gelfand, "Gibbs sampling." Journal of the American Statistical Association, Vol. 95, No. 452, pp. 1300-1304, June 2000. doi: 10.1080/01621459.2000.10474335   DOI
15 S. Chib and E. Greenberg, "Understanding the Metropolis-Hastings algorithm," American Statistician, Vol. 49, No. 4, pp. 327-335, November 1995. doi: 10.1080/00031305.1995.10476177   DOI
16 D. Aigner, C.A.K. Lovell, and P. Schmidt, "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Vol. 6, No. 1, pp. 21-37, July 1977. doi: 10.1016/0304-4076(77)90052-5   DOI
17 W. Meeusen, and J. van den Broeck, "Efficiency estimation from Cobb-Douglas production functions with composed errors," International Economic Review, Vol. 18, No. 2, pp. 435-444, June 1977. doi:   DOI
18 P. Bauer, "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Vol. 46, No. 1/2, pp. 39-56, October-November 1990. doi: 10.1016/0304-4076(90)90046-V   DOI