Hotel Performance in the UK: The Role of Information Entropy in a Novel Slack-Based Data Envelopment Analysis
Previous hotel performance studies neglected the role of information entropy in feedback processes between input and output management. This paper focuses on this gap by exploring the relationship between hotel performance at the industry level and the capability of learning by doing and adopting be...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-01-01
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| Series: | Entropy |
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| Online Access: | https://www.mdpi.com/1099-4300/23/2/184 |
| _version_ | 1797417501530783744 |
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| author | Yong Tan Ali Jamshidi Abdollah Hadi-Vencheh Peter Wanke |
| author_facet | Yong Tan Ali Jamshidi Abdollah Hadi-Vencheh Peter Wanke |
| author_sort | Yong Tan |
| collection | DOAJ |
| description | Previous hotel performance studies neglected the role of information entropy in feedback processes between input and output management. This paper focuses on this gap by exploring the relationship between hotel performance at the industry level and the capability of learning by doing and adopting best practices using a sample of 153 UK hotels over a 10-year period between 2008–2017. Besides, this research also fills a literature gap by addressing the issues of measuring hotel performance in light of negative outputs. In order to achieve this, we apply a novel Modified slack-based model for the efficiency analysis and Least Absolute Shrinkage and Selection Operator to examine the influence of entropy related variable on efficiency score. The Results indicate that less can be learnt from inputs than from outputs to improve efficiency levels and resource allocation is more balanced than cash flow and liquidity. The findings suggest that market dynamics explains the cash flow generation potential and liquidity. We find that market conditions are increasingly offering the opportunities for learning and improving hotel efficiency. The results report that the distinctive characteristic of superior performance in hotel operations is the capability to match the cash flow generation potential with market opportunities. |
| first_indexed | 2024-03-09T06:19:40Z |
| format | Article |
| id | doaj.art-55db3939e43543c1b8487a3af98308af |
| institution | Directory Open Access Journal |
| issn | 1099-4300 |
| language | English |
| last_indexed | 2024-03-09T06:19:40Z |
| publishDate | 2021-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Entropy |
| spelling | doaj.art-55db3939e43543c1b8487a3af98308af2023-12-03T11:49:28ZengMDPI AGEntropy1099-43002021-01-0123218410.3390/e23020184Hotel Performance in the UK: The Role of Information Entropy in a Novel Slack-Based Data Envelopment AnalysisYong Tan0Ali Jamshidi1Abdollah Hadi-Vencheh2Peter Wanke3Department of Accounting, Finance and Economics, Huddersfield Business School, University of Huddersfield, Huddersfield, Queensgate HD1 3DH, UKDepartment of Mathematics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan 19585/466, IranDepartment of Mathematics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan 19585/466, IranCOPPEAD Graduate Business School, Federal University of Rio de Janeiro, Rio de Janeiro 21941-901, BrazilPrevious hotel performance studies neglected the role of information entropy in feedback processes between input and output management. This paper focuses on this gap by exploring the relationship between hotel performance at the industry level and the capability of learning by doing and adopting best practices using a sample of 153 UK hotels over a 10-year period between 2008–2017. Besides, this research also fills a literature gap by addressing the issues of measuring hotel performance in light of negative outputs. In order to achieve this, we apply a novel Modified slack-based model for the efficiency analysis and Least Absolute Shrinkage and Selection Operator to examine the influence of entropy related variable on efficiency score. The Results indicate that less can be learnt from inputs than from outputs to improve efficiency levels and resource allocation is more balanced than cash flow and liquidity. The findings suggest that market dynamics explains the cash flow generation potential and liquidity. We find that market conditions are increasingly offering the opportunities for learning and improving hotel efficiency. The results report that the distinctive characteristic of superior performance in hotel operations is the capability to match the cash flow generation potential with market opportunities.https://www.mdpi.com/1099-4300/23/2/184UK hotelsdata envelopment analysisinformation entropycash flow generationoperating scalelearning process |
| spellingShingle | Yong Tan Ali Jamshidi Abdollah Hadi-Vencheh Peter Wanke Hotel Performance in the UK: The Role of Information Entropy in a Novel Slack-Based Data Envelopment Analysis Entropy UK hotels data envelopment analysis information entropy cash flow generation operating scale learning process |
| title | Hotel Performance in the UK: The Role of Information Entropy in a Novel Slack-Based Data Envelopment Analysis |
| title_full | Hotel Performance in the UK: The Role of Information Entropy in a Novel Slack-Based Data Envelopment Analysis |
| title_fullStr | Hotel Performance in the UK: The Role of Information Entropy in a Novel Slack-Based Data Envelopment Analysis |
| title_full_unstemmed | Hotel Performance in the UK: The Role of Information Entropy in a Novel Slack-Based Data Envelopment Analysis |
| title_short | Hotel Performance in the UK: The Role of Information Entropy in a Novel Slack-Based Data Envelopment Analysis |
| title_sort | hotel performance in the uk the role of information entropy in a novel slack based data envelopment analysis |
| topic | UK hotels data envelopment analysis information entropy cash flow generation operating scale learning process |
| url | https://www.mdpi.com/1099-4300/23/2/184 |
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