Does Asset-Light Strategy Contribute to the Dynamic Efficiency of Global Airlines?

Wang, Wei-Kang and Lin, Fengyi and Irene, Wei Kiong Ting and Kweh, Qian Long and Lu, Wen-Min and Chiu, Tzu-Yu (2017) Does Asset-Light Strategy Contribute to the Dynamic Efficiency of Global Airlines? Journal of Air Transport Management, 62. pp. 99-108. ISSN 0969-6997. (Published)

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Abstract

This study analyses the effect of asset-light strategy on the dynamic efficiency of global airlines from 2008 to 2013. First, a dynamic data envelopment analysis is employed to estimate the dynamic efficiency of global airlines. Second, the degree of asset-lightness is computed by combining the concepts of the DuPont equation and financial ratios. Third, a multivariate analysis is performed to analyze the association between asset-light strategy and dynamic efficiency. The findings show that asset-light strategy significantly enables global airlines to have better corporate performance. Overall, this study suggests that global airlines should efficiently manage and allocate their light resources to sustain challenges in the dynamic global airline industry.

Item Type: Article
Uncontrolled Keywords: Asset-light strategy; Dynamic data envelopment analysis; Efficiency; Global airline industry; Corporate performance
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Faculty/Division: Faculty of Industrial Management
Depositing User: Mrs. Neng Sury Sulaiman
Date Deposited: 16 Jun 2017 02:00
Last Modified: 15 Jun 2022 03:35
URI: http://umpir.ump.edu.my/id/eprint/14759
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