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Total factor productivity efficiency changes in a Malaysian hotel chain


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


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.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Faculty of Food Science and Technology
DOI Number: https://doi.org/10.1504/IJRM.2010.03596
Publisher: Inderscience Enterprises
Keywords: Data envelopment analysis; DEA; Hotel efficiency; Malaysian hotel chain; Malmquist index; TFP; Total factor productivity
Depositing User: Emelda Mohd Hamid
Date Deposited: 04 Jul 2013 00:56
Last Modified: 26 Apr 2017 09:41
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1504/IJRM.2010.03596
URI: http://psasir.upm.edu.my/id/eprint/17440
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