Developing an integrated model for the selection of strategic alliance partners in the airline industry

This study proposes a hybrid model to help airlines select suitable partners for strategic alliances. The model addresses the interdependency and feedback effects between criteria and alternatives by using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Process (ANP). Decision-makers may hold diverse opinions and preferences due to incomplete information, differences in knowledge or simply inherent conflicts between various departments. This can make it difficult to judge the importance of the selection criteria. To remedy the problem we further apply Fuzzy Preference Programming (FPP) to integrate the different expert opinions. The proposed model can help practitioners improve their decision making process, especially when criteria and alternatives are numerous and inter-related. The method is demonstrated using data from a Taiwanese airline. Specific companies can easily extend this generic model to address their individual needs.

[1]  T. L. Saaty,et al.  Decision making with dependence and feedback , 2001 .

[2]  Zeshui Xu,et al.  A method for multiple attribute decision making with incomplete weight information in linguistic setting , 2007, Knowl. Based Syst..

[3]  Dong-Sung Cho,et al.  The effect of strategic alliance on performance , 1997 .

[4]  Ludmil Mikhailov,et al.  Fuzzy assessment of priorities with application to competitive bidding , 1999 .

[5]  Ludmil Mikhailov,et al.  Fuzzy analytical approach to partnership selection in formation of virtual enterprises , 2002 .

[6]  Timothy J. Wilkinson,et al.  Strategic alliances: Choose your partners , 1995 .

[7]  Robert E. Spekman,et al.  Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques , 1994 .

[8]  E. Waarts,et al.  The Effect of National Culture on , 2003 .

[9]  Nigel Evans,et al.  Collaborative strategy:: an analysis of the changing world of international airline alliances , 2001 .

[10]  Fariba Alamdari,et al.  Factors affecting the operational success of strategic airline alliances , 1998 .

[11]  Mark Goh,et al.  Impacts of code-share alliances on airline cost structure: A truncated third-order translog estimation , 2006 .

[12]  Thomas L. Saaty,et al.  Fundamentals of the analytic network process — multiple networks with benefits, costs, opportunities and risks , 2004 .

[13]  De-Li Yang,et al.  Using a hybrid multi-criteria decision aid method for information systems outsourcing , 2007, Comput. Oper. Res..

[14]  James J. H. Liou,et al.  Developing a hybrid multi-criteria model for selection of outsourcing providers , 2010, Expert Syst. Appl..

[15]  M. Tamura,et al.  Extraction and systems analysis of factors that prevent safety and security by structural models , 2002, Proceedings of the 41st SICE Annual Conference. SICE 2002..

[16]  Ji Mohr,et al.  Characteristics of partnership success: Partnership attributes, communication behavior and conflict resolution technique, Strategic Management Journal, January, . , 1994 .

[17]  Jih-Jeng Huang,et al.  Multidimensional data in multidimensional scaling using the analytic network process , 2005, Pattern Recognit. Lett..

[18]  T. Saaty,et al.  The Analytic Hierarchy Process , 1985 .

[19]  Ming-Lang Tseng,et al.  Using the extension of DEMATEL to integrate hotel service quality perceptions into a cause-effect model in uncertainty , 2009, Expert Syst. Appl..

[20]  S. Park,et al.  The Effect of National Culture, Organizational Complementarity, and Economic Motivation on Joint Venture Dissolution , 1997 .

[21]  W. W. Suen,et al.  Alliance strategy and the fall of Swissair , 2002 .

[22]  Thomas L. Saaty,et al.  Decision making with dependence and feedback : the analytic network process : the organization and prioritization of complexity , 1996 .

[23]  Richard Bellman,et al.  Decision-making in fuzzy environment , 2012 .

[24]  J. M. Geringer,et al.  Strategic Determinants of Partner Selection Criteria in International Joint Ventures , 1991 .

[25]  Theodor J. Stewart,et al.  Multiple criteria decision analysis - an integrated approach , 2001 .

[26]  Jiunn-I Shieh,et al.  A DEMATEL method in identifying key success factors of hospital service quality , 2010, Knowl. Based Syst..

[27]  Yer Van Hui,et al.  Air cargo alliances and competition in passenger markets , 2004 .

[28]  G. Tzeng,et al.  Marketing strategy based on customer behaviour for the LCD-TV , 2006 .

[29]  John W. Medcof,et al.  Why too many alliances end in divorce , 1997 .

[30]  Yadong Lu,et al.  Joint venture success in China: How should we select a good partner? , 1998 .

[31]  Gwo-Hshiung Tzeng,et al.  Evaluating intertwined effects in e-learning programs: A novel hybrid MCDM model based on factor analysis and DEMATEL , 2007, Expert Syst. Appl..

[32]  J. Killing,et al.  Strategies for joint venture success , 1983 .

[33]  Gwo-Hshiung Tzeng,et al.  An integrated MCDM technique combined with DEMATEL for a novel cluster-weighted with ANP method , 2011, Expert Syst. Appl..

[34]  Wann-Ming Wey,et al.  An integrated expert system/operations research approach for the optimization of waste incinerator siting problems , 2005, Knowl. Based Syst..