Incorporating resource optimization for sustainable airline service innovation business decision model: toward circular economy policy achievement

doi:10.1007/s10479-024-05981-y

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Title:	Incorporating resource optimization for sustainable airline service innovation business decision model: toward circular economy policy achievement
Authors:	Kuo, Lopin
Keywords:	Circular economy (CE);Innovation business decision model;Multi-criteria decision-making (MCDM);Resource constraints;Zero-One goal programming (ZOGP)
Date:	2024-04-24
Issue Date:	2024-07-31 12:08:56 (UTC+8)
Abstract:	The United Nations Sustainable Development Goals (SDGs) provide a practical framework for addressing a sets of interconnected global economic, environmental and social concerns. Despite the circular economy providing an optimal vision for the development balance between the environment and the economy, the main challenge regarding industrial practices is its innovation business model. The airline industry has experienced rapid growth and has become an increasingly significant actor in the global transport chain. However, resource optimization is a key enabler for a circular economy policy promotion in the sustainable airline service industry. This study developed an innovation business decision model for sustainable airline service, which aims to help managers evaluating a set of the most effective criteria for selecting an airline business model. It also sought to understand sustainable airline development and identify its causal-effect factors, as well as the optimal portfolios of a service business model. Further, this study integrated the Decision-Making Trial and Evaluation Laboratory (DEMATEL), Analytic Network Process (ANP), and Zero-One Goal Programming (ZOGP) for decision evaluation on sustainable aviation service innovation under the consideration of resource optimization. The results revealed that customer requests and natural sustainability were the catalysts for evaluating a sustainable airline service innovation business model. On the other hand, converting airliners to freighters (CAF), resource supply chain (RSC), and jet engine leasing (JEL) were the optimal business model portfolios. This study highlights the importance of understanding the innovation business model evaluation for sustainable airline service. Furthermore, it offers a decision infrastructure to managers to help the airline industry realize sustainable circular value, simultaneously, it also contributes to achieving United Nations Sustainable Development Goals (SDG 7, SDG 9, and SDG 17).
Relation:	Annals of Operations Research
DOI:	10.1007/s10479-024-05981-y
Appears in Collections:	[Graduate Institute & Department of Accounting] Journal Article

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