Developing an innovation capital index of global airlines using a hierarchical data envelopment analysis approach

Ming-Miin Yu, Azwan Abdul Rashid and Kok Fong See

Journal of the Operational Research Society, 2022, vol. 73, issue 8, 1708-1723

Abstract: This study proposes an effectiveness-based hierarchical data envelopment analysis (H-DEA) method to endogenously assign weights with the purpose of aggregating subcategories for an innovation capital index in the global airline industry. The study comprises airlines ranked in the World's Top 100 Airlines in 2018. The effectiveness-based H-DEA results provide evidence that there are opportunities for airlines to improve their innovation capital index, on average, by 48%. Relatively low scores in the internal capital category are identified as the major contributor to the poor innovation capital index, and the optimal scores and weights of the innovation capital index are found to differ by geographical location. Effectiveness-based H-DEA offers an alternative method for determining the optimal weight of an innovation capital index in a multidimensional setting for international comparison. The flexible weight can help each airline to focus on the critical innovation capital categories requiring improvement to create an effective business strategy. To the best of the authors' knowledge, to date, no studies have focussed on innovation capital in the airline industry. This study also provides a detailed discussion on how to assess the innovation capital index in the global airline industry specifically using the effectiveness-based H-DEA method.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1080/01605682.2021.1923378 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tjorxx:v:73:y:2022:i:8:p:1708-1723

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/tjor20

DOI: 10.1080/01605682.2021.1923378

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald

More articles in Journal of the Operational Research Society from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().