Aviatic innovation system construction using a hybrid fuzzy MCDM model

Abstract

Due to the occurrence of several recent threats, such as, from an international perspective, SARS, the 9/11 terrorist attack, increases in the price of oil, depressions in the economy, and, from a domestic perspective, increasing interaction with China, joining the WTO, low railway prices, and high-speed rail development, resulting in passenger rate dropping drastically, an increasing number of Taiwanese airlines have been facing deficits or closing down in recent years. Therefore, long-term strategies for gaining a competitive advantage are now starting to focus on innovation rather than cost reduction. Although attention to the importance of innovation is rising, there are few studies today that provide airlines with a clear and precise way to successfully conduct innovation operations. The aim of this study is to solve this dilemma by constructing a novel aviatic innovation system (AIS). In this paper, a hybrid fuzzy multiple criteria decision-making (MCDM) model based on a fuzzy analytical hierarchical process (FAHP) and a VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) is adopted to complete the construction of the AIS. The value of the AIS is to provide Taiwanese airlines with innovation-oriented techniques for future strategy development. We believe that the AIS can contribute to the survival of Taiwanese airlines in the near future.