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Service outsourcing and hotel performance: three-stage DEA analysis

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

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.

Suggested Citation

  • Jui-Kou Shang & Wei-Ting Hung & Fei-Ching Wang, 2008. "Service outsourcing and hotel performance: three-stage DEA analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 15(13), pages 1053-1057.
  • Handle: RePEc:taf:apeclt:v:15:y:2008:i:13:p:1053-1057
    DOI: 10.1080/13504850600993523
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    References listed on IDEAS

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    1. Randy I. Anderson & Robert Fok & Leonard V. Zumpano & Harold W. Elder, 1998. "Measuring the Efficiency of Residential Real Estate Brokerage Firms," Journal of Real Estate Research, American Real Estate Society, vol. 16(2), pages 139-158.
    2. Holger Görg & Aoife Hanley, 2004. "Does Outsourcing Increase Profitability?," The Economic and Social Review, Economic and Social Studies, vol. 35(3), pages 267-288.
    3. Enrico Santarelli, 1998. "Start-up size and post-entry performance: the case of tourism services in Italy," Applied Economics, Taylor & Francis Journals, vol. 30(2), pages 157-163, February.
    4. Asier Minondo & Gloria Rubert, 2006. "The effect of outsourcing on the demand for skills in the Spanish manufacturing industry," Applied Economics Letters, Taylor & Francis Journals, vol. 13(9), pages 599-604.
    5. H. Fried & C. Lovell & S. Schmidt & S. Yaisawarng, 2002. "Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 17(1), pages 157-174, January.
    6. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    7. Carlos Pestana Barros & Stephanie Leach, 2006. "Performance evaluation of the English Premier Football League with data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1449-1458.
    8. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    9. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:5:p:853-:d:99188 is not listed on IDEAS
    2. repec:eee:touman:v:47:y:2015:i:c:p:127-137 is not listed on IDEAS
    3. Marco Corsino & Enrico Zaninotto, 2012. "Revealing the influence of managerial practices and entrepreneurs' characteristics on hotel efficiency," DISA Working Papers 2012/03, Department of Computer and Management Sciences, University of Trento, Italy, revised May 2012.

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