The purpose of this paper is to investigate publicly traded restaurant companies and food & beverage companies from 2014 to 2019 in Taiwan to explore their human capital…
Abstract
Purpose
The purpose of this paper is to investigate publicly traded restaurant companies and food & beverage companies from 2014 to 2019 in Taiwan to explore their human capital efficiency.
Design/methodology/approach
According to the theoretical framework of human capital in micro and macro perspectives, the empirical model is built with two stages; the first stage is to examine the perspective of micro-level human capital theory through determining whether knowledge ability and working experience (proxies for micro-level human capital) can efficiently convert to employee-level output such as salary. The second stage is to test macro-level human capital theory through checking whether company inputs such as salary expenses and benefits expenditures can be efficiently transferred into enterprise annual revenues.
Findings
The results of this research reveal that the average efficiency score of stage 1 is 73.6% while that of stage 2 is 75.1%; this indicates that micro-level human capital has more room to improve than macro-level human capital. Meanwhile, the findings also demonstrate that there is negative relationship between efficiency score from stage 1 and turnover rate; this implies that companies with higher micro-human capital have lower turnover rates. Furthermore, there is significantly positive relationship between a company's efficiency score from stage 2 and its return on equity (ROE).
Originality/value
This study contributes to both academia and industry. From a theoretical perspective, the theory of strategic human resources management is applied through the methodology of production theory to examine human capital management efficiency in the restaurant and food and beverage industry. From a practical perspective, this study identifies the factors that assist the restaurant or food and beverage industry retain employees and gain a solid workforce, because manpower is the core resource for an industry and a country to grow sustainably.
Details
Keywords
Performance evaluation is a good way to improve competitiveness, and leveraging competitiveness is vital to developing optimal strategies and sustainable development for the…
Abstract
Purpose
Performance evaluation is a good way to improve competitiveness, and leveraging competitiveness is vital to developing optimal strategies and sustainable development for the growing restaurant industry in the USA and across the globe. This study can benefit from the methods to inform business strategies and decisions. Through the combination of two methods, this paper aims to provide novel perspectives to realize each restaurant company’s resource allocation and performance, to know their market position compared to with other competitors, and then to develop their own business strategies.
Design/methodology/approach
This study proposes an application of slack-based measure (SBM) to determine input excesses and output shortfalls of the restaurant industry. Subsequently, context-dependent data envelopment analysis (DEA) is used to identify the level of each restaurant company and compute the relative attractiveness and progress scores for each restaurant at each level, positioning each restaurant company’s stance in their markets.
Findings
The empirical results reveal that management teams need to pay more attention to human resources, asset management and food cost control because the analysis of SBM model shows an opportunity for restaurant companies to adjust their hiring numbers to reach the optimal amount of employees. In addition, restaurant companies are categorized by their efficient frontiers into four levels using context-dependent DEA. Furthermore, the findings provide the four quadrants that each restaurant company falls into. Each of those four quadrants can guide the types of strategies a restaurant should adopt.
Originality/value
This study can help the publicly traded restaurant companies to identify their market position with target benchmarks, and then to develop optimal strategies and future plans for growth.
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Keywords
This paper applies the directional distant function and the meta-frontier to analyze the efficiency and technology gap ratio (TGR) of 20 publicly traded restaurant companies based…
Abstract
This paper applies the directional distant function and the meta-frontier to analyze the efficiency and technology gap ratio (TGR) of 20 publicly traded restaurant companies based on the stock market of the United States (US) from 2009 to 2016. The efficiency scores and TGRs are first computed by restaurant types (i.e. quick-service and full-service) and then by marketing strategies (i.e. single-brand and multi-brand). There are three major findings. First, employee utilization has the greatest room for improvement, and restaurant owners and managers should prioritize the improvement of this input. Second, the average TGR of quick-service restaurants (QSRs) is higher than that of full-service restaurants (FSRs), indicating that the inputs of FSRs need to be adjusted in comparison to QSRs. Third, the average TGR is higher in restaurants with a multi-brand strategy in comparison to a single-brand strategy, and the inputs of multi-brand strategy restaurants need to be adjusted accordingly.