Investigating the Effects of IT Capability on Hotel Performance Based on DEA Approach: An Empirical Example of International Hotels in Hong Kong

Pengzhen Yin,Min Yang,Ranran Yang

doi:10.3390/su12176732

Pengzhen Yin, Min Yang + Show 1 more

Open Access

https://doi.org/10.3390/su12176732

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Abstract

IT capability improves organization resilience in uncertain social environments (such as the outbreak of COVID-19) and, thus, becomes a key factor in the organization of sustainable development. However, studies have rarely quantitatively examined the efficiency of IT capability and its effects on hotel performance. This study aims to investigate how and to what extent IT capability facilitates hotel operations. Context-dependent and measure-specific data envelopment analysis (DEA) models were employed to assess hotel performance and IT capability. The data from international hotels in Hong Kong were collected for an empirical analysis. The results indicated that the hotels in Hong Kong are classified as market leaders, challenges, followers, and nichers based on the efficiency scores. This study then analyzed the differences and relationship between hotel IT capability and hotel performance. The improvement targets of each input and output variable were also provided for further decision-making. Both theoretical and practical implications for hotel management are discussed.

Highlights

The hotel industry has become one of the rapid development industries due to the boosting of the global economy in recent years
According to the research objectives, the context-dependent data envelopment analysis (DEA) model was adopted to cluster the hotels into several operational levels in this study
Based on the context-dependent DEA model, the sample was classified into four categories on different efficiency levels

Summary

Introduction

The hotel industry has become one of the rapid development industries due to the boosting of the global economy in recent years. Scholars have demonstrated a significantly positive relationship between IT adoption and a higher level of competitive advantage, which is closely related to the social and economic benefits of hotel management [1,2,3]. After the impact of COVID-19 on traditional industries especially, practitioners have to pay more attention to the development of IT capability. It is, important to examine how and to what extent the current IT capability affects hotel operation. Scholars have examined the direct impact of IT on hotels’ internal operation processes, such as the effects on hotel employees’ productivity, performance, and job satisfaction [4,5] and on the strategic management, service management, and transaction costs [6]. Recent research has studied the indirect effects of IT on the hotel external market competition environment, customer–service relationships, and collaboration in the hotel chain [3,7]

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