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Assessing and ranking the innovation ability and business performance of global companies in the aerospace and defense industry
Author(s) -
Hsieh H. Pierre,
Wu YuehCheng,
Lu WenMin,
Chen YaoChieh
Publication year - 2020
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3150
Subject(s) - profitability index , ranking (information retrieval) , aerospace , data envelopment analysis , industrial organization , business , work (physics) , marketing , engineering , computer science , finance , mathematics , statistics , mechanical engineering , machine learning , aerospace engineering
This study examined the innovation ability and business performance of global companies in the aerospace and defense (A&D) industry by using dynamic data envelopment analysis and ranking methods with the DuPont model. Results indicated that compared with business performance, A&D companies exhibit lower scores and higher standard deviations in the innovation ability, which signified that they should first work on reducing the gap in the level of innovation ability. DuPont analysis indicated that typical A&D companies exhibit the highest ROE. Finally, this study offers managers and policymakers detailed insights into potential areas of improvements in innovations, business performance, and profitability.