Investigating the effects of IT capability on hotel performance based on DEA approach: An empirical example of international hotels in Hong Kong

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.