Abstract
In supporting the maritime economy as the backbone of Indonesian economy, shipping and marine transportation companies should increase their performances. This research aims to analyze efficiency-profitability mapping of Indonesian shipping and marine transportation companies using efficiency-profitability matrix. This research uses Return on Assets (ROA) as profitability proxy and Data Envelopment Analysis for the measurement of efficiency (overall technical efficiency, pure technical efficiency, and scale efficiency). The results of this research show that not all of the technically efficient shipping and marine transportation companies are scale efficient. This research also finds that not all of the companies that have high profitability are also having high efficiency. Some companies are efficient but still make less profit because they are in the dog quadrant. Some companies are included in the Sleeper quadrant and should improve their management. However, most of the companies are included in the Star quadrant, means that most of the companies have high efficiency and profitability. The results of this research show that it’s important for to the shipping and marine transportation companies to increase their efficiency in order to have higher profitability. DOI: 10.5901/mjss.2015.v6n5s5p230
Highlights
The government of Indonesia has a plan to make maritime economy as the backbone of Indonesian economy
Data Envelopment Analysis (DEA) is a linear programming method that is used to measure the efficiency of a Decision Making Unit (DMU)
The number of the technically efficient companies is more than the number of scale efficient companies
Summary
The government of Indonesia has a plan to make maritime economy as the backbone of Indonesian economy. This plan should be followed by increasing the developments in maritime sectors. Shipping and marine transportation sector become one of maritime sectors that should be developed for increasing its performance in giving marine transportation services and supporting the maritime economy. There are several shipping and marine transportation companies listed on the Indonesian Stock Exchange. The performance of listed shipping and marine transportation companies for the last three years is not quite satisfactory. Average profitability of the shipping and marine transportation companies in 2013 became positive but some of the companies still have negative profitability
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