ICT Paradox Lost? A Stepwise DEA Methodology to Evaluate Technology Investments in Tourism Settings

Empirical findings reveal that productivity gains accrue not from investments per se, but from the full exploitation of the ICT networking and informationalization capabilities.

Abstract

Despite the continuous increase of investment in information and communication technologies (ICT) in the tourism industry, empirical studies have not persuasively established corresponding increases in productivity. Indeed several shortcomings have been identified in past studies. This study proposes a new way of assessing ICT productivity. The methodology is tested in a data set from the three-star hotel sector in the United Kingdom using a nonparametric technique called data envelopment analysis (DEA). Empirical findings reveal that productivity gains accrue not from investments per se, but from the full exploitation of the ICT networking and informationalization capabilities. A model for managing ICT applications and benefits is proposed.