An application of data envelopment analysis to the performance assessment of online social networks usage in mazatlán hotel organizations

Abstract

Best practices in social media have been recently a major concern for organizations, since they are an important key in online social networks to develop a comprehensive strategy both on e-commerce and on traditional business. This paper makes use of Data Envelopment Analysis (DEA) (Charnes et al. 1978) for measuring the economic performance of organizations that lead to best practices using online social networks in their business and strategic processes. In particular, we apply a DEA CRS input-oriented model on a dataset of thirteen hotel organizations in Mazatlán, México, to measure efficiency from the period of 2012 to 2013. The results show that management styles and technology adoption have a great impact on efficiency as well on the creation of competitive strategies. Also, hotel organizations that are willing to use the information obtained from online social networks to create new products or services and aggressively invest on these networks to reach new markets are increasing their market share and show the best performance.