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Total factor productivity efficiency changes in a Malaysian hotel chain

This paper investigates the changes in total factor productivity (TFP) of a Malaysian hotel chain during the period of 2002-2008. TFP change is measured by Malmquist index, using data envelopment analysis (DEA) approach. The data were collected from eight hotels under the chain. Overall, the results...

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Main Authors: Othman, Mohhidin, Foo, Lee Yen, Abdul Karim, Muhammad Shahrim, Abdul Aziz, Yuhanis
Format: Article
Language:English
Published: Inderscience Enterprises 2010
Online Access:http://psasir.upm.edu.my/id/eprint/17440/1/Total%20factor%20productivity%20efficiency%20changes%20in%20a%20Malaysian%20hotel%20chain.pdf
http://psasir.upm.edu.my/id/eprint/17440/
http://www.inderscienceonline.com/doi/abs/10.1504/IJRM.2010.03596
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spelling my.upm.eprints.174402017-04-26T09:41:07Z http://psasir.upm.edu.my/id/eprint/17440/ Total factor productivity efficiency changes in a Malaysian hotel chain Othman, Mohhidin Foo, Lee Yen Abdul Karim, Muhammad Shahrim Abdul Aziz, Yuhanis This paper investigates the changes in total factor productivity (TFP) of a Malaysian hotel chain during the period of 2002-2008. TFP change is measured by Malmquist index, using data envelopment analysis (DEA) approach. The data were collected from eight hotels under the chain. Overall, the results revealed that the TFP of the hotel chain has slightly increased by 0.8% over the time period. Within the chain, four of the hotels experienced positive TFP change while the others experienced TFP decline. The hotels were segregated into quadrant of efficiency which give a two dimensional view of the hotel efficiency. Technological change is found to be more important factor of TFP growth as compared to technical efficiency change. As such, it is recommended that hotels which experienced negative growths of technological change improve their efficiency through investment in new technology or upgrading the necessary skills. Inderscience Enterprises 2010-10 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/17440/1/Total%20factor%20productivity%20efficiency%20changes%20in%20a%20Malaysian%20hotel%20chain.pdf Othman, Mohhidin and Foo, Lee Yen and Abdul Karim, Muhammad Shahrim and Abdul Aziz, Yuhanis (2010) Total factor productivity efficiency changes in a Malaysian hotel chain. International Journal of Revenue Management, 4 (3-4). pp. 327-343. ISSN 1474-7332; ESSN: 1741-8186 http://www.inderscienceonline.com/doi/abs/10.1504/IJRM.2010.03596 10.1504/IJRM.2010.03596
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This paper investigates the changes in total factor productivity (TFP) of a Malaysian hotel chain during the period of 2002-2008. TFP change is measured by Malmquist index, using data envelopment analysis (DEA) approach. The data were collected from eight hotels under the chain. Overall, the results revealed that the TFP of the hotel chain has slightly increased by 0.8% over the time period. Within the chain, four of the hotels experienced positive TFP change while the others experienced TFP decline. The hotels were segregated into quadrant of efficiency which give a two dimensional view of the hotel efficiency. Technological change is found to be more important factor of TFP growth as compared to technical efficiency change. As such, it is recommended that hotels which experienced negative growths of technological change improve their efficiency through investment in new technology or upgrading the necessary skills.
format Article
author Othman, Mohhidin
Foo, Lee Yen
Abdul Karim, Muhammad Shahrim
Abdul Aziz, Yuhanis
spellingShingle Othman, Mohhidin
Foo, Lee Yen
Abdul Karim, Muhammad Shahrim
Abdul Aziz, Yuhanis
Total factor productivity efficiency changes in a Malaysian hotel chain
author_facet Othman, Mohhidin
Foo, Lee Yen
Abdul Karim, Muhammad Shahrim
Abdul Aziz, Yuhanis
author_sort Othman, Mohhidin
title Total factor productivity efficiency changes in a Malaysian hotel chain
title_short Total factor productivity efficiency changes in a Malaysian hotel chain
title_full Total factor productivity efficiency changes in a Malaysian hotel chain
title_fullStr Total factor productivity efficiency changes in a Malaysian hotel chain
title_full_unstemmed Total factor productivity efficiency changes in a Malaysian hotel chain
title_sort total factor productivity efficiency changes in a malaysian hotel chain
publisher Inderscience Enterprises
publishDate 2010
url http://psasir.upm.edu.my/id/eprint/17440/1/Total%20factor%20productivity%20efficiency%20changes%20in%20a%20Malaysian%20hotel%20chain.pdf
http://psasir.upm.edu.my/id/eprint/17440/
http://www.inderscienceonline.com/doi/abs/10.1504/IJRM.2010.03596
_version_ 1643826517966323712
score 13.211869

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