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The purpose of this paper is to illuminate light on the assessment of operating efficiency of specialty coffee retailers from the perspective of socially responsible global sourcing. This paper evaluates the impact of socially responsible sourcing on the operating efficiencies of specialty coffee retailers before and after implementing fair‐trade practices and compares the operating efficiencies of fair‐trade coffee retailers to those of non‐fair‐trade coffee retailers.

The paper proposes data envelopment analysis (DEA) to measure the comparative efficiency of seven specialty coffee retailers, relative to prior periods and their key competitors. It develops the Charnes‐Cooper‐Rhodes (CCR) model that is designed to derive weights without their being fixed in advance. The CCR version of DEA is adopted to assess the impact of the coffee retailers' policy initiatives (i.e. fair‐trade practices) on their efficiency and measure the change over time (i.e. before and after fair‐trade practices) efficiency of the coffee retailers. As a post hoc DEA analysis, it also performs non‐parametric rank sum statistical tests for any discernable group differences between fair‐trade coffee retailers and non‐fair‐trade coffee retailers.

The study found that a group of coffee retailers committed to socially responsible sourcing (i.e. fair‐trade) practices tended to perform significantly better than the group which has yet to commit socially responsible sourcing practices with a concern over increased purchasing price. Also, it was found that a premium purchasing price paid to fair‐trade coffee beans did not undermine the coffee retailer's comparative operating efficiency despite its adverse impact on purchasing cost. In other words, a cost increase resulting from socially responsible business conducts might have been offset by the revenue increase resulting from favorable brand recognition attached to social responsibility.

This study is the first attempt to assess the impact of socially responsible sourcing practices on the multinational firms (MNFs) such as specialty coffee retailers' competitiveness and then investigate whether the MNF's commitment to socially responsible sourcing practices can be developed into its long‐term strategic weapon. In addition, it helps specialty coffee retailers formulate future global sourcing strategies by providing the detailed picture of how socially responsible sourcing can impact their competitiveness.

This paper aims to develop a balanced scorecard for measuring the comparative efficiency of Korean luxury hotels and then set the benchmark of performance standards for Korean luxury hotels in the increasingly competitive hotel industry. It also aims to identify the root causes of inefficiencies and then propose ways to improve the competitiveness of Korean luxury hotels.

This paper proposes data envelopment analysis (DEA) to measure the comparative efficiency of six luxury hotel chains in Korea, relative to prior periods and their key competitors. In particular, this paper develops the Charnes, Cooper and Rhodes (CCR) model that is designed to derive weights without being fixed in advance. Also, the results of the CCR model with constant returns to scale were compared to those of the Banker, Charnes and Cooper (BCC) model with decreasing returns to scale.

The paper finds that the declining efficiency within some Korean luxury hotels coincides with more aggressive government crackdowns on bad bank loans in the wake of the International Monetary Fund (IMF) financial crisis and the slow adaptation of some hotels into ongoing hotel industry restructuring. The deep discount in hotel room rates did not necessarily lead to increased room occupancy. The revenue increase is not significantly correlated with the enhanced profitability of Korean luxury hotels. The Korean hotel industry reached the stage of market maturity and therefore the mere expansion of the hotel capacity would not necessarily enhance the hotel's profitability.

This paper uncovers the financial weaknesses and strengths of the Korean luxury hotels and identifies challenges and opportunities for the Korean hotel industry. In addition, it helps Korean hotels formulate the future survival strategies by providing the detailed picture of where they stand in terms of competitiveness. This paper is one of the first attempts to utilise DEA to develop performance measures for hotels under the balanced scorecard framework. The proposed DEA can be easily modified or extended to similar settings in other hotels such as budget hotels or other countries such as USA and Japan.

In an era of downsizing and financial cutbacks, the operational efficiency of third party logistics providers (3PLs) dictates their competitiveness and/or survival. In an effort to help 3PLs enhance productivity and price leverage in the increasingly competitive third party logistics market, this paper aims to develop a meaningful set of financial benchmarks that will dictate best practices. In particular, the paper proposes a data envelopment analysis (DEA) that is proven to be useful for measuring the operational efficiency of various profit or non‐profit organizations.

Using the examples of major 3PLs in the USA, this paper is the first to illustrate the usefulness of DEA for measuring the competitiveness of third party logistics services. The proposed DEA model also helps 3PLs identify potential sources of inefficiency and provide useful hindsight for the continuous improvement of operational efficiency. Furthermore, the proposed DEA model not only helps 3PLs establish detailed policy guidelines in prioritizing the use of financial resources, but also helps them evaluate the effects of financial investment on the profitability of 3PLs.

DEA study finds that the strength of 3PL service performances and the breadth of diverse 3PL services is somewhat correlated to the long‐term financial strength of 3PLs.

The main contribution of this paper includes the novel application of DEA to the performance measurement of 3PLS. The proposed DEA model not only helps 3PLS establish detailed policy guidelines in prioritizing the use of financial resources, but also helps them evaluate the effects of financial investment on the profitability of 3PLS.

American wineries have taken marketing steps toward attracting consumers. They employ tasting scores to augment and solidify market share. According to Oster (1999) and Porter (1985), competitive advantage comes from either cost advantages or product differentiation. American wineries use tasting scores they receive from experts as the basis for product differentiation and raising prices. To achieve competitive advantage, the product must be seen as important and an improvement in the market, while simultaneously lacking imitation. This article looks at how tasting scores given by wine experts may affect American firms' competitive advantage, barring entry by importing rivals, such as Australian firms. If these tasting scores provide product importance and improvements, while delivering a product that lacks imitation, competitive advantage may result. If importers to the US realise this, these firms can undermine American advantages, increase competition, and gain market share through their own competitive advantages.