ABSTRACT

This research aimed to analyze the efficiency level of 30 information and communications technology (ICT) companies in Southeast Asia and East Asia for the period 2013–2017. This research used the Stochastic Frontier Analysis (SFA) method with the Translog Production model to estimate the technical efficiency score and its correlation with input variables and explanatory variables. The results revealed that overall, ICT companies in Southeast Asia and East Asia have been efficient, with an average technical efficiency value of 0.8361, and the most influential variables are labor, company’s age, and company’s size. Telkom, China Mobile, and NTT were the most efficient ICT companies, while Time dotCom, Smartfren, and Samart Telcoms were the most inefficient ICT companies. Based on their operating location, ICT companies in the East Asia region were more efficient than those in the Southeast Asia region, and ICT companies in high-income countries were more efficient than those in middle-income countries.