Managerial efficiency in the food and beverage industry in Taiwan

Jin-Li Hu*, Chia Ning Chiu, Hou Tang Chu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

This study evaluates the managerial efficiency of food and beverage companies by employing the output-oriented data envelopment analysis (DEA) approach. Consequently, the input and output variables of ten Taiwanese listed food and beverage companies were collected from 2011 to 2014. Then the Mann-Whitney U test was used to examine the difference in efficiency between restaurant companies and beverage and dessert companies. The major findings are as follows: (1) An inverse relationship exists between the scale and managerial efficiencies of the food and beverage industry. (2) The Mann-Whitney U test shows that the beverage and dessert companies are statistically more efficient. The results not only offer different managerial insights into the food and beverage indus-try’s operating efficiency but also determine which factors have a significant and direct impact on these restaurants’ or beverage and dessert shops’ success or failure, which is the considerable contribution of this study for the service industry.

Original languageEnglish
Article number5
Pages (from-to)39-48
Number of pages10
JournalJournal of Hospitality Financial Management
Volume27
Issue number1
DOIs
StatePublished - 1 Jan 2019

Keywords

  • Data envelopment analysis (DEA)
  • Food and beverage
  • Mann-Whitney U test
  • Restaurant
  • Technical efficiency

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