Towards the Operationalization of the Value Creation Network in Airlines

Abstract

In times of uncertainty like the present, value creation is a critical factor that determines airlines’ competitive capacity and their ability to survive. Understanding the value creation process in a more realistic way and facilitating a tool that helps managers to anticipate performance under simulated scenarios is the objective of this article. A Delphi survey of 28 executives from major airlines around the world was conducted that procured the knowledge for the so-called Airline Value Creation Network (AVCN), an operational analytical framework presented in this article along with its benefits and limitations. Implications for researchers and managers are discussed. For researchers, novel data and methodological inroads are offered that address the creation of value as a complex adaptive system. The use of Fuzzy Cognitive Maps for modeling and simulation proves to be a viable computational method in this context. For managers, the research reveals key empirical evidence of reality that explains the creation of value as a network and provides an easy-to-use, fast-to-grow tool that can help inform airlines' value creation policies and decision-making.