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A partner selection approach for strategic alliance in the global aerospace and defense industry

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  • Wang, Chia-Nan
  • Nguyen, Xuan-Tho
  • Le, Thi-Dao
  • Hsueh, Ming-Hsien

Abstract

Finding a mutually beneficial alliance partner is a critical success factor for various companies. This paper aims to propose an effective method based on grey theory and data envelopment analysis (DEA), which efficiently predicts future business and measures operational performance by using critical input and output variables. Decision-making units (DMUs) can find the most appropriate candidates. This research was implemented with public data from four consecutive financial years (2012–2015) of the world's 35 largest aerospace and defense companies. The study forms a total of 69 virtual alliances for target Airbus Group SE (DMU2) and 627 virtual alliances for all inefficient DMUs. The empirical results showed that the alliances between DMU2+DMU1 and DMU27 + DMU6 are the two most feasible partnerships. DMU3, DMU6, and DMU13 are considered to be the best partners for inefficient DMUs. DMU6 was recommended 12 times (63%), DMU3 was recommended four times (21%), and DMU13 was recommended three times (16%). The study will be a key recommendation for strategic planners of the aerospace and defense industry as well as other manufacturing industries.

Suggested Citation

  • Wang, Chia-Nan & Nguyen, Xuan-Tho & Le, Thi-Dao & Hsueh, Ming-Hsien, 2018. "A partner selection approach for strategic alliance in the global aerospace and defense industry," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 190-204.
    • Handle: RePEc:eee:jaitra:v:69:y:2018:i:c:p:190-204
    DOI: 10.1016/j.jairtraman.2018.03.003
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    Cited by:

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    2. Antonio Juan Briones-Peñalver & Juan Andrés Bernal-Conesa & Carmen Nieves Nieto, 2020. "Knowledge and innovation management model. Its influence on technology transfer and performance in Spanish Defence industry," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 595-615, June.
    3. Zhou, Xiaoyang & Chen, Hao & Chai, Jian & Wang, Shouyang & Lev, Benjamin, 2020. "Performance evaluation and prediction of the integrated circuit industry in China: A hybrid method," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    4. H. Pierre Hsieh & Yueh‐Cheng Wu & Wen‐Min Lu & Yao‐Chieh Chen, 2020. "Assessing and ranking the innovation ability and business performance of global companies in the aerospace and defense industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 952-963, September.
    5. Amin, Gholam R. & Ibn Boamah, Mustapha, 2023. "Modeling business partnerships: A data envelopment analysis approach," European Journal of Operational Research, Elsevier, vol. 305(1), pages 329-337.
    6. Ghouri, Arsalan Mujahid & Akhtar, Pervaiz & Shahbaz, Muhammad & Shabbir, Haseeb, 2019. "Affective organizational commitment in global strategic partnerships: The role of individual-level microfoundations and social change," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 320-330.
    7. Mu-Hsin Chang & James J. H. Liou & Huai-Wei Lo, 2019. "A Hybrid MCDM Model for Evaluating Strategic Alliance Partners in the Green Biopharmaceutical Industry," Sustainability, MDPI, vol. 11(15), pages 1-20, July.
    8. Antonio Juan Briones-Peñalver & Juan Andrés Bernal-Conesa & Carmen Nieves Nieto, 0. "Knowledge and innovation management model. Its influence on technology transfer and performance in Spanish Defence industry," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.

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