Service outsourcing and hotel performance: three-stage DEA analysis

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

39 citations0/0 files storedApplied Economics Letters

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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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References

1978Measuring the efficiency of decision making units 1984Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis 2000Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance 2002Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis 2003Using data envelopment analysis to measure hotel managerial efficiency change in Taiwan 2005Measuring efficiency in the hotel sector 1986Measuring efficiency : an assessment of data envelopment analysis 2003Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries

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2020An Evaluation of Air Transport Sector Operational Efficiency in China based on a Three-Stage DEA Analysis 2010Assurance region context-dependent DEA with an application to Taiwanese hotel industry 2011Managing Efficiency in International Tourist Hotels in Taipei using a DEA Model with Non-discretionary Inputs 2015Tourism Enterprises as Buyers of Knowledge-Intensive Business Services 2015External and Internal Factors Motivating Outsourcing of Business Services by Meeting-Industry Companies: A Case Study in Krakow, Poland

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