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Performance evaluation of Taiwanese international tourist hotels: evidence from a modified NDEA model with ICA technique

    Sheng-Hsiung Chiu Affiliation
    ; Tzu-Yu Lin Affiliation

Abstract

The motivation for this study is to assess the managerial performance in Taiwanese international tourist hotels based on the two-stage NDEA performance mechanism with ICA technique for enhancing the discriminatory power of performance evaluation model. The two-stage managerial performance structure is applied, incorporating the service production and service operation stages, as a reduced form to introduce the relatively complex business environment of modern enterprise. However, we have need to be considerable of dimensionality curse problem in NDEA performance model. A modified NDEA-based evaluation model, therefore, is proposed to integrate the network slacks-based measure (NSBM) with a dimensional reduction technique, the independent component analysis (ICA). The results indicate that the performance of the profit dimension significantly hampers operational performance, and that both regulators and managers must adjust their market orientation business strategy. Moreover, compared with the NSBM model, this modified ICA-NSBM performance model has a high discriminatory ability to measure the relative performance of the selected hotels.

Keyword : Taiwanese international tourist hotels, two-stage NDEA model, independent component analysis, network slacks-based measure, DEA, performance evaluation

How to Cite
Chiu, S.-H., & Lin, T.-Y. (2018). Performance evaluation of Taiwanese international tourist hotels: evidence from a modified NDEA model with ICA technique. Technological and Economic Development of Economy, 24(4), 1560-1580. https://doi.org/10.3846/tede.2018.3116
Published in Issue
Aug 14, 2018
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This work is licensed under a Creative Commons Attribution 4.0 International License.

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