Measuring non-convex metafrontier efficiency in international tourist hotels

Abstract

The non-convex metafrontier model was introduced by O’Donnell et al (2008) with a brief sketch and interpreted by Tiedemann et al (2011) through a graphical instruction. However, the specific function was not present in former studies. In order to strengthen the non-parametric metafrontier approach, this study proposes the specific modelling function and calculational operation for the non-convex metafrontier model and applies the developed model to investigate the technology gaps between the four operating types of Taiwan’s international tourist hotels. The empirical findings show that management contract technology has achieved the potential best practice within the four groups and that there exists a significant gap between the potential best practice and present performance in the domestic, franchise, and membership chain technologies.

Keywords:

• DEA
• convex metafrontier
• non-convex metafrontier
• performance measurement
• international tourist hotels