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The dynamics of multilateral allying: a process perspective on airline alliances

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  • Kleymann, Birgit

Abstract

The paper argues that the development of airline alliances depends on airlines’ resource configurations and is furthermore a function of environmental constraints forcing particular types of airlines into certain choices; of conscious, rational strategy devising; and of the degree to which alliance membership it gains institutional legitimacy. Because the phenomenon under study can be understood as both social and technical, the study uses a dual theoretical approach. On one hand, the positioning of airlines in the alliance environment is examined using a resource dependence perspective. The mitigation of power imbalances in a formal network of firms, the benefits and dangers of specialisation and the management of interdependencies between partners will be discussed. The second perspective taken is that of institutional theory. Based mainly on interviews with senior airline management, the aim is to understand the institutionalisation of alliances, or how managerial perceptions drive the building of alliances. The paper concludes with the discussion of a model depicting the factors that influence the development of multilateral alliances between autonomous, but interdependent firms, accounting for both centripetal forces, pushing toward tighter member integration, and centrifugal forces, pushing for looser coupling.

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  • Kleymann, Birgit, 2005. "The dynamics of multilateral allying: a process perspective on airline alliances," Journal of Air Transport Management, Elsevier, vol. 11(3), pages 135-147.
    • Handle: RePEc:eee:jaitra:v:11:y:2005:i:3:p:135-147
    DOI: 10.1016/j.jairtraman.2004.08.002
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    1. Kleymann, Birgit & Seristö, Hannu, 2001. "Levels of airline alliance membership: balancing risks and benefits," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 303-310.
    2. Weber, Mathieu & Dinwoodie, John, 2000. "Fifth freedoms and airline alliances. The role of fifth freedom traffic in an understanding of airline alliances," Journal of Air Transport Management, Elsevier, vol. 6(1), pages 51-60.
    3. T. Hari Das, 1983. "Qualitative Research In Organizational Behaviour," Journal of Management Studies, Wiley Blackwell, vol. 20(3), pages 301-314, July.
    4. D. Eleanor Westney, 1993. "Institutionalization Theory and the Multinational Corporation," Palgrave Macmillan Books, in: Sumantra Ghoshal & D. Eleanor Westney (ed.), Organization Theory and the Multinational Corporation, chapter 3, pages 53-76, Palgrave Macmillan.
    5. John Hendry, 2000. "Strategic Decision Mking, Discourse, And Strategy As Social Practice," Journal of Management Studies, Wiley Blackwell, vol. 37(7), pages 955-978, November.
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    Cited by:

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    5. Holtbrügge, Dirk & Wilson, Sarah & Berg, Nicola, 2006. "Human resource management at Star Alliance: Pressures for standardization and differentiation," Journal of Air Transport Management, Elsevier, vol. 12(6), pages 306-312.

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