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Evaluation of efficiency and technological bias of tourist hotels by a meta-frontier DEA model

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  • Ming-Miin Yu
  • Li-Hsueh Chen

Abstract

Tourist hotels may face different production frontiers and bias of technology between the group frontier and meta-frontier due to technological heterogeneity. This paper develops a meta-frontier data envelopment analysis framework for evaluating the efficiency and technological bias of tourist hotels. By comparing the curvatures of the group frontier and meta-frontier, the relative technological bias between a specific group and the whole industry can be obtained. Furthermore, by investigating the relative technological bias, the direction of technological improvement needed for individual hotels can be ascertained. The proposed method is applied in an empirical example of Taiwanese tourist hotels. The results indicate that most hotels have technological bias and should adjust the curve of their production possibility frontier to match the meta-technology.

Suggested Citation

  • Ming-Miin Yu & Li-Hsueh Chen, 2020. "Evaluation of efficiency and technological bias of tourist hotels by a meta-frontier DEA model," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 71(5), pages 718-732, May.
    • Handle: RePEc:taf:tjorxx:v:71:y:2020:i:5:p:718-732
    DOI: 10.1080/01605682.2019.1578625
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    Cited by:

    1. Helu Xiao & Na Wang & Shanping Wang, 2023. "Dynamic sustainability assessment of poverty alleviation in China: evidence from both novel non-convex global two-stage DEA and Malmquist productivity index," Operational Research, Springer, vol. 23(2), pages 1-40, June.
    2. Chen, Lei & Wang, Ying-Ming, 2023. "Game directional distance function in meta-frontier data envelopment analysis," Omega, Elsevier, vol. 121(C).
    3. Gowangwoo Park & Seok-Kee Lee & Kanghwa Choi, 2021. "Evaluating the Service Operating Efficiency and Its Determinants in Global Consulting Firms: A Metafrontier Analysis," Sustainability, MDPI, vol. 13(18), pages 1-18, September.
    4. Jorge Antunes & Abdollah Hadi-Vencheh & Ali Jamshidi & Yong Tan & Peter Wanke, 2022. "Bank efficiency estimation in China: DEA-RENNA approach," Annals of Operations Research, Springer, vol. 315(2), pages 1373-1398, August.

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