chapter  7
Private Sector Capacity: Scale of Operations and Capability of Companies
Pages 28

In chapter 6, productivity, DEA technical efficiency and service quality of

private sector companies were presented. The analysis of these perform-

ance variables shows that 19 out of the 33 companies had technical effi-

ciency values below 50% and productivity values below an average of 18

tonnes/day/vehicle. It was identified that there were variations in the pro-

ductivity and technical efficiency of the companies across the cities. How-

ever, there was no significant correlation between technical efficiency and

service quality. This suggests that high productivity and technical effi-

ciency do not necessarily lead to high service quality. This chapter will ex-

amine the reasons for these relationships, but the analysis will focus more

on technical efficiency and productivity which are objective variables

compared to service quality which is subjective as it was based on cos-

tumer survey.