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Service outsourcing and hotel performance: three-stage DEA analysis

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  • Jui-Kou Shang
  • Wei-Ting Hung
  • Fei-Ching Wang

Abstract

This article is the first to apply the three-stage DEA procedure to analyze the impact of service outsourcing on the performance of hotels. In the first stage of analysis, outsourcing hotels are more efficient than nonoutsourcing hotels. However, after purging the effects of exogenous factors, this study found that the average managerial efficiency score computed in the three-stage DEA procedure was 0.917 or alternatively that hotels on average are 8.3% resources waste. Furthermore, service outsourcing is not the main determinant of the efficiency of international tourist hotels in Taiwan.

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  • Jui-Kou Shang & Wei-Ting Hung & Fei-Ching Wang, 2008. "Service outsourcing and hotel performance: three-stage DEA analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 15(13), pages 1053-1057.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:13:p:1053-1057
    DOI: 10.1080/13504850600993523
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    2. Xinna Zhao & Chongwen Zhong, 2017. "Low Carbon Economy Performance Analysis with the Intertemporal Effect of Capital in China," Sustainability, MDPI, vol. 9(5), pages 1-18, May.
    3. Krzysztof Borodako & Jadwiga Berbeka & Michał Rudnicki, 2015. "Tourism Enterprises as Buyers of Knowledge-Intensive Business Services," SAGE Open, , vol. 5(1), pages 21582440155, January.
    4. Alberca-Oliver, Pilar & Rodríguez-Oromendía, Ainhoa & Parte-Esteban, Laura, 2015. "Measuring the efficiency of trade shows: A Spanish case study," Tourism Management, Elsevier, vol. 47(C), pages 127-137.
    5. Lado-Sestayo, Rubén & Fernández-Castro, Ángel Santiago, 2019. "The impact of tourist destination on hotel efficiency: A data envelopment analysis approach," European Journal of Operational Research, Elsevier, vol. 272(2), pages 674-686.
    6. Jiung-Bin Chin & Mu-Chen Wu & Ling-Feng Hsieh, 2013. "Strategic planning of optimal resource allocation in response to global financial crisis -- a study of international tourist hotels," Applied Economics, Taylor & Francis Journals, vol. 45(23), pages 3316-3328, August.
    7. Marco Corsino & Enrico Zaninotto, 2012. "Revealing the influence of managerial practices and entrepreneurs' characteristics on hotel efficiency," DISA Working Papers 2012/03, Department of Computer and Management Sciences, University of Trento, Italy, revised May 2012.
    8. Reyes Gonzalez & Juan Llopis & Jose Gasco, 2010. "What do we know about outsourcing in hotels?," The Service Industries Journal, Taylor & Francis Journals, vol. 31(10), pages 1669-1682, March.
    9. Surakiat PARICHATNON & Kamonthip MAICHUM & Ke-Chung PENG, 2018. "Measuring technical efficiency of Thai rubber production using the three-stage data envelopment analysis," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(5), pages 227-240.
    10. Jonchi Shyu & Sheng-Chieh Hung, 2010. "The true managerial efficiency of international tourist hotels in Taiwan: three-stage data envelopment analysis," The Service Industries Journal, Taylor & Francis Journals, vol. 32(12), pages 1991-2004, September.
    11. Tomás F. Espino-Rodríguez, 2023. "Research on Outsourcing by Hotel Firms: Current State and Future Directions," Tourism and Hospitality, MDPI, vol. 4(1), pages 1-15, January.
    12. Begoña Fuster & Adelaida Lillo-Bañuls & Carmen Martínez-Mora, 2018. "Offshoring of services as a competitive strategy in the tourism industry," Tourism Economics, , vol. 24(8), pages 963-979, December.
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