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Evaluating the Performances of Taiwan’s International Tourist Hotels: Applying the Directional Distance Function and Meta-Frontier Approach

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  • Yi-Lung Lee

    (Department of Electrical Engineering, National Changhua University of Education, No. 2, Shi-Da Road, Changhua 50074, Taiwan)

  • Shew-Huei Kuo

    (Department of Finance, National Yunlin University of Science and Technology, No. 123 University Road, Douliu, Yunlin 64002, Taiwan)

  • Mei-Yi Jiang

    (Institute of Business and Management, National University of Kaohsiung, No. 700 Kaohsiung University Rd., Nanzih District, Kaohsiung 811, Taiwan)

  • Yang Li

    (Newhuadu Business School, Minjiang University, No. 200, Xiyuangong Road, Fuzhou 350108, China)

Abstract

This study employs the directional distance function in the meta-frontier model by expanding outputs, contracting inputs, and fastening quasi-fixed inputs simultaneously on a dataset of 170 observations obtained from the annual reports of international tourist hotels. Empirical results show that the meta-efficiency and technology gap (TG) of foreign-owned hotels are better than those of domestic hotels. In addition, employees of foreign-owned hotels are more productive than those of domestic hotels. The findings imply that Taiwan’s tourist hotels should structure a plan to augment their operating scales.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5773-:d:277733
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    References listed on IDEAS

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    Cited by:

    1. Angel Higuerey & Christian Viñan-Merecí & Zulema Malo-Montoya & Valentín-Alejandro Martínez-Fernández, 2020. "Data Envelopment Analysis (DEA) for Measuring the Efficiency of the Hotel Industry in Ecuador," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    2. 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.
    3. Doo-Young Park & Kanghwa Choi & Dae-Han Kang, 2020. "Measuring the Meta Efficiency and Its Determinants on Efficiency in the Korean Coffee Shop Franchise," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
    4. 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.
    5. Pilar Alberca & Laura Parte, 2020. "Efficiency in the Holiday and Other Short-Stay Accommodation Industry," Sustainability, MDPI, vol. 12(22), pages 1-22, November.

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