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

Yi-Lung Lee, Shew-Huei Kuo, Mei-Yi Jiang and Yang Li
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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

Sustainability, 2019, vol. 11, issue 20, 1-11

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.

Keywords: International tourist hotel; DEA; directional distance function; meta-frontier; quasi-fixed inputs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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