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Assurance region context-dependent DEA with an application to Taiwanese hotel industry

Author

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  • Hilary Cheng
  • Yi-Chuan Lu
  • Jen-Tsung Chung

Abstract

This study proposes assurance region (AR) context-dependent data envelopment analysis (DEA) and applies the restricted weights derived by analytic hierarchy process in measuring the performance of 34 selected Taiwanese international tourist hotels during the years 1997–2006. Empirical results indicate that: AR context-dependent DEA has more of an efficiency segment than context-dependent DEA; the market differentiates 10 performance levels that form the benchmark structure for 34 hotels; hotels with higher attractiveness can serve as learning targets for hotels at lagging levels so as to establish the best path for performance improvement; and hotels at leading levels can use lower progress to analyse potential competitors at lagging levels. The results of this study can provide hotel managers with insights into competitive advantage and can help them with strategic decision-making.

Suggested Citation

  • Hilary Cheng & Yi-Chuan Lu & Jen-Tsung Chung, 2010. "Assurance region context-dependent DEA with an application to Taiwanese hotel industry," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 8(3), pages 292-312.
    • Handle: RePEc:ids:ijores:v:8:y:2010:i:3:p:292-312
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    Cited by:

    1. 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.
    2. repec:cor:louvrp:-2393 is not listed on IDEAS
    3. HATAMI-MARBINI, Adel & TAVANA, Madjid & EMROUZNEJAD, Ali & SAATI, Saber, 2012. "Efficiency measurement in fuzzy additive data envelopment analysis," LIDAM Reprints CORE 2393, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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