A DEA-based two-stage network approach for hotel performance analysis: An internal cooperation perspective

Abstract In the digital era, cooperation has become a new way of firm operation, but only rarely have studies investigated how internal cooperative mechanisms among departments affect firm performance evaluation. Grounded on resource-based view theory, a two-stage network structure model of a hotel (i.e. operations stage and marketing stage) is presented, illustrating how a hotel consumes internal resources and obtains competitive advantages and market profits. A DEA-based bi-objective model is put forward to evaluate the hotel performance from the perspective that the two internal stages cooperate with each other. To solve the proposed model, an extended augmented weighted Tchebycheff metric and a new algorithm are used. An empirical analysis using data from 68 Taiwanese international tourist hotels in 2011 was conducted, and the results corroborated the theorems and remarks about the proposed model. This study offers a comprehensive benchmarking tool to improve hotel decision-making.

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