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Measuring pure managerial efficiency of international tourist hotels in Taiwan

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

Abstract

This paper applies the four-stage DEA procedure to calculate the pure managerial efficiency of 54 international tourist hotels in Taiwan. The main empirical findings include: (1) the operating environments do affect input slacks, and the efficiency scores of traditional DEA; (2) ‘city hotel’ is an unfavourable operating environment, ‘chain-operated hotel’ is a favourable one; (3) after purging the effect of operating environments, there is no significance in pure managerial efficiency due to differences in management style, and the pure managerial style of resort hotels is no longer more efficient than in the city hotels.

Suggested Citation

  • Fei-Ching Wang & Wei-Ting Hung & Jui-Kou Shang, 2006. "Measuring pure managerial efficiency of international tourist hotels in Taiwan," The Service Industries Journal, Taylor & Francis Journals, vol. 26(1), pages 59-71, January.
    • Handle: RePEc:taf:servic:v:26:y:2006:i:1:p:59-71
    DOI: 10.1080/02642060500358860
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    Cited by:

    1. Manuela Pulina & Valentina Santoni, 2018. "A two-stage DEA approach to analyse the efficiency of the hospitality sector," Tourism Economics, , vol. 24(3), pages 352-365, May.
    2. Yi-Lung Lee & Shew-Huei Kuo & Mei-Yi Jiang & Yang Li, 2019. "Evaluating the Performances of Taiwan’s International Tourist Hotels: Applying the Directional Distance Function and Meta-Frontier Approach," Sustainability, MDPI, vol. 11(20), pages 1-11, October.
    3. Chui-Hua Liu & Gwo-Hshiung Tzeng & Po-Yen Lee, 2019. "Combined CFPR and VIKOR Model for Enhancing the Competencies of Domestic Chain Hotel Groups," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 901-927, May.
    4. Laure Latruffe & Hervé Guyomard & Chantal Le Mouël, 2009. "The role of public subsidies on farms’ managerial efficiency: An application of a five-stage approach to France," Working Papers SMART 09-05, INRAE UMR SMART.
    5. Chin‐wei Huang & Hsiao‐Yin Chen, 2023. "Using nonradial metafrontier data envelopment analysis to evaluate the metatechnology and metafactor ratios for the Taiwanese hotel industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 1904-1919, June.
    6. Francisca J. Sánchez-Sánchez & Ana M. Sánchez-Sánchez, 2024. "Evaluating the efficiency and determinants of mass tourism in Spain: a tourist area perspective," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 23(1), pages 111-145, January.
    7. Yaguo Deng & Helena Veiga & Michael P. Wiper, 2019. "Efficiency evaluation of hotel chains: a Spanish case study," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(2), pages 115-139, June.
    8. 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.
    9. Cordero, Jose Manuel & Polo, Cristina & Simancas, Rosa, 2022. "Assessing the efficiency of secondary schools: Evidence from OECD countries participating in PISA 2015," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    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. Huang, Chin-wei & Ho, Foo Nin & Chiu, Yung-ho, 2014. "Measurement of tourist hotels׳ productive efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA model in Taiwan," Omega, Elsevier, vol. 48(C), pages 49-59.
    12. Antonio Arbelo & Pilar Pérez-Gómez & Marta Arbelo-Pérez, 2017. "Cost efficiency and its determinants in the hotel industry," Tourism Economics, , vol. 23(5), pages 1056-1068, August.
    13. Yang Li & An-Chi Liu & Yi-Ying Yu & Yueru Zhang & Yiting Zhan & Wen-Cheng Lin, 2022. "Bootstrapped DEA and Clustering Analysis of Eco-Efficiency in China’s Hotel Industry," Sustainability, MDPI, vol. 14(5), pages 1-16, March.
    14. Eleni Dimitriadou & Asimina Kouriati & Sofia Karampela & Anna Tafidou & Thomas Bournaris, 2023. "The Three Dimensions of Small Accommodation Businesses and Their Efficiency," Tourism and Hospitality, MDPI, vol. 4(3), pages 1-16, August.
    15. Arbelo-Pérez, Marta & Arbelo, Antonio & Pérez-Gómez, Pilar, 2017. "Impact of quality on estimations of hotel efficiency," Tourism Management, Elsevier, vol. 61(C), pages 200-208.
    16. Gómez Vega, Mafalda & Herrero Prieto, Luis César, 2017. "Determinantes de la eficiencia en la captación de turismo cultural nacional y extranjero en España: Un análisis regional/Drivers of Efficiency in Attracting Domestic and Foreign Cultural Tourism to Sp," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 849-872, Agosto.
    17. Federico Inchausti-Sintes & Ubay Pérez-Granja & José Juan Morales-Mohamed, 2021. "Analysing labour productivity and its economic consequences in the two Spanish tourist archipelagos," Tourism Economics, , vol. 27(5), pages 1039-1059, August.
    18. David Fang & Ming‐Ching Hsueh & Ching‐Ren Chiu, 2020. "An investigation of international hotel productivity considering quasifixed inputs and negative outputs," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 380-388, April.
    19. Yin, Pengzhen & Chu, Junfei & Wu, Jie & Ding, Jingjing & Yang, Min & Wang, Yuhong, 2020. "A DEA-based two-stage network approach for hotel performance analysis: An internal cooperation perspective," Omega, Elsevier, vol. 93(C).
    20. Yung-ho Chiu & Chin-wei Huang & Chung-te Ting, 2012. "A non-radial measure of different systems for Taiwanese tourist hotels’ efficiency assessment," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(1), pages 45-63, March.
    21. Tsui-Yueh Cho & Tsai-Yi Wang, 2018. "Estimations of cost metafrontier Malmquist productivity index: using international tourism hotels in Taiwan as an example," Empirical Economics, Springer, vol. 55(4), pages 1661-1694, December.
    22. Sancharan Roy, 2011. "Competitiveness in Service Sector," Global Business Review, International Management Institute, vol. 12(1), pages 51-69, February.
    23. 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.

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