IDEAS home Printed from https://ideas.repec.org/a/prp/jattij/v11y2018i1p31-42.html
   My bibliography  Save this article

Classification and Efficiency Analysis of Slovenian Restaurant SMEs

Author

Listed:
  • Tanja Planinc

    (University of Primorska, Slovenia)

  • Marko Kukanja

    (University of Primorska, Slovenia)

  • Saša Planinc

    (University of Primorska, Slovenia)

Abstract

Focusing on the characteristics of restaurant SMEs, the purpose of this paper is to use (1) a cluster analysis (CA), and (2) data envelopment analysis (DEA) approach to classify restaurant SMES into different groups based on their physical and managerial characteristics and attempts to determine whether differences exist in the efficiency performance of different groups. The study has conducted a two-step ca and DEA analysis to identify the effects of restaurant characteristics on efficiency performance. This method takes into consideration the presence of heterogeneous subsets in efficiency assessment. Restaurants were preselected based on their operational characteristics. SMEs whose only source of income was their restaurant business were included in the study. Surveys were performed with restaurant managers, and the firms’ financial reports were analysed. Two diverse groups were identified: smaller restaurants with younger and less experienced managers, and bigger restaurantswith older and more experiencedmanagers.The various physical (number of seats, years of business activity) andmanagerial (age, and professional experience) characteristics appeared to significantly affect restaurant types differently. Established restaurants with more seats, older and more experienced managers proved to be more efficient. This is the very first study to analyse Slovenian restaurant businesses efficiency with a combined CA-DEA approach. Primary data was collected by surveying restaurant managers while secondary financial data was provided by national tax authorities after the implementation of fiscal cash registers.

Suggested Citation

  • Tanja Planinc & Marko Kukanja & Saša Planinc, 2018. "Classification and Efficiency Analysis of Slovenian Restaurant SMEs," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 11(1), pages 31-42.
    • Handle: RePEc:prp:jattij:v:11:y:2018:i:1:p:31-42
    DOI: 10.26493/2335-4194.11.31-42
    as

    Download full text from publisher

    File URL: http://www.hippocampus.si/ISSN/2335-4194/11.31-42.pdf
    File Function: full text in English
    Download Restriction: no
    File URL: https://libkey.io/10.26493/2335-4194.11.31-42?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    2. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    3. Lee, Craig & Hallak, Rob & Sardeshmukh, Shruti R., 2016. "Innovation, entrepreneurship, and restaurant performance: A higher-order structural model," Tourism Management, Elsevier, vol. 53(C), pages 215-228.
    4. Marchetti, Dalmo & Wanke, Peter, 2017. "Brazil's rail freight transport: Efficiency analysis using two-stage DEA and cluster-driven public policies," Socio-Economic Planning Sciences, Elsevier, vol. 59(C), pages 26-42.
    5. Rajiv D. Banker & Richard C. Morey, 1986. "Efficiency Analysis for Exogenously Fixed Inputs and Outputs," Operations Research, INFORMS, vol. 34(4), pages 513-521, August.
    6. Marko Kukanja, 2015. "Restaurant Quality Measurement Based on Marketing Factors – The Managers’ Perspective," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 8(2), pages 15-28.
    7. A. George Assaf & Carlos Pestana Barros, 2013. "A Global Benchmarking of the Hotel Industry," Tourism Economics, , vol. 19(4), pages 811-821, August.
    8. Marianna Sigala & Peter Jones & Andrew Lockwood & David Airey, 2005. "Productivity in hotels: a stepwise data envelopment analysis of hotels' rooms division processes," The Service Industries Journal, Taylor & Francis Journals, vol. 25(1), pages 61-81, January.
    9. Tanja Kosi & Štefan Bojnec, 2013. "Institutional barriers to business entry in advanced economies," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(2), pages 317-329, April.
    10. 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.
    11. P. Sunil Dharmapala & Piyadasa Edirisuriya, 2011. "A decision model to predict profitability using revised Thompson–Thrall profit ratios in DEA with an application to South Asian banks," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 12(4), pages 407-429.
    12. Jie Wu & Liang Liang & Haiyan Song, 2010. "Measuring Hotel Performance Using the Integer Dea Model," Tourism Economics, , vol. 16(4), pages 867-882, December.
    13. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tanja Planinc & Marko Kukanja, 2019. "Efficiency Analysis of Restaurants Operating in the Rural Areas: The Case of Slovenia," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 12(2), pages 133-145.
    2. Kukanja Marko & Planinc Tanja, 2019. "Cost-Effective Service Excellence: Exploring the Relationships Among Restaurants’ Operational Efficiency, Size and Service Quality," South East European Journal of Economics and Business, Sciendo, vol. 14(2), pages 67-81, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. A. George Assaf & Alexander Josiassen & Haemoon Oh, 2016. "Internationalization and hotel performance," Tourism Economics, , vol. 22(3), pages 572-592, June.
    2. 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.
    3. Pengzhen Yin & Min Yang & Ranran Yang, 2020. "Investigating the Effects of IT Capability on Hotel Performance Based on DEA Approach: An Empirical Example of International Hotels in Hong Kong," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    4. Portela, Maria C.A.S. & Thanassoulis, Emmanuel, 2010. "Malmquist-type indices in the presence of negative data: An application to bank branches," Journal of Banking & Finance, Elsevier, vol. 34(7), pages 1472-1483, July.
    5. 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).
    6. Fallah-Fini, Saeideh & Triantis, Konstantinos & de la Garza, Jesus M. & Seaver, William L., 2012. "Measuring the efficiency of highway maintenance contracting strategies: A bootstrapped non-parametric meta-frontier approach," European Journal of Operational Research, Elsevier, vol. 219(1), pages 134-145.
    7. Ying Li & Yung-Ho Chiu & Liang Chun Lu, 2018. "Regional Energy, CO 2 , and Economic and Air Quality Index Performances in China: A Meta-Frontier Approach," Energies, MDPI, vol. 11(8), pages 1-20, August.
    8. Walheer, Barnabé, 2023. "Meta-frontier and technology switchers: A nonparametric approach," European Journal of Operational Research, Elsevier, vol. 305(1), pages 463-474.
    9. Panayiotis Curtis & Michael Hanias & Eleftherios Kourtis & Michael Kourtis, 2021. "Financial Performance Assessment οf Strategy for Building Resilience and Readiness in the Hotel Sector of Greece," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(2), pages 3-27.
    10. Reinhard, Stijn & Knox Lovell, C. A. & Thijssen, Geert J., 2000. "Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA," European Journal of Operational Research, Elsevier, vol. 121(2), pages 287-303, March.
    11. Jacob Asravor & Alexander N. Wiredu & Khalid Siddig & Edward E. Onumah, 2019. "Evaluating the Environmental-Technology Gaps of Rice Farms in Distinct Agro-Ecological Zones of Ghana," Sustainability, MDPI, vol. 11(7), pages 1-16, April.
    12. Núñez, F. & Arcos-Vargas, A. & Villa, G., 2020. "Efficiency benchmarking and remuneration of Spanish electricity distribution companies," Utilities Policy, Elsevier, vol. 67(C).
    13. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    14. Bravo-Ureta, Boris E. & Jara-Rojas, Roberto & Lachaud, Michee A. & Moreira L., Victor H. & Scheierling, Susanne M., 2015. "Water and Farm Efficiency: Insights from the Frontier Literature," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206076, Agricultural and Applied Economics Association.
    15. Sainaghi, Ruggero & Phillips, Paul & Zavarrone, Emma, 2017. "Performance measurement in tourism firms: A content analytical meta-approach," Tourism Management, Elsevier, vol. 59(C), pages 36-56.
    16. Nan Jiang & Basil Sharp, 2015. "Technical efficiency and technological gap of New Zealand dairy farms: a stochastic meta-frontier model," Journal of Productivity Analysis, Springer, vol. 44(1), pages 39-49, August.
    17. Tanja Planinc & Marko Kukanja, 2019. "Efficiency Analysis of Restaurants Operating in the Rural Areas: The Case of Slovenia," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 12(2), pages 133-145.
    18. Huguenin, Jean-Marc, 2015. "Adjusting for the environment in DEA: A comparison of alternative models based on empirical data," Socio-Economic Planning Sciences, Elsevier, vol. 52(C), pages 41-54.
    19. Lei Fang & C-Q Zhang, 2008. "Resource allocation based on the DEA model," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(8), pages 1136-1141, August.
    20. Fuentes, Ramón, 2011. "Efficiency of travel agencies: A case study of Alicante, Spain," Tourism Management, Elsevier, vol. 32(1), pages 75-87.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prp:jattij:v:11:y:2018:i:1:p:31-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alen Jezovnik (email available below). General contact details of provider: http://academica.turistica.si .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.