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Influencing Factors of Organizational Performance in Nepal Airlines Corporation

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  • Shrijan Gyanwali
  • John C. Walsh

Abstract

The objective of the study is to evaluate performance influencing factors in Nepal Airlines Corporation (NAC) through mixed research method, qualitative and quantitative analysis. The primary data were obtained from in-depth interview with fifteen government and NAC executives. Secondary data were collected from Nepal Government, NAC publications and International Air Transport Association (IATA). Revenue generation and passenger movement rate is found with average performance. Motivated employee, entrepreneurial marketing, collective leadership, ownership feeling of government and environmental support were explored as key performance factors. Sophisticated technology, airworthiness, and international standard and recommended practice were found as unique features. Lack of aircraft, unfair political influence and alienation of staffs in unionism were identified the reasons of lacking the business growth. A performance framework is proposed which comprises entrepreneurial marketing (proactiveness, risk taking, innovativeness, opportunity focused, resource leveraging, customer intensity and value creation), collective leadership, sophisticated technology and sufficient number of modern aircrafts, service reliability and safety, and government support. The study recommends Nepal government to take ownership of NAC, and adopt fair and professional management practice rather than political quota distribution in its governing body, board of directors.

Suggested Citation

  • Shrijan Gyanwali & John C. Walsh, 2020. "Influencing Factors of Organizational Performance in Nepal Airlines Corporation," International Business Research, Canadian Center of Science and Education, vol. 13(1), pages 268-283, January.
  • Handle: RePEc:ibn:ibrjnl:v:13:y:2020:i:1:p:268-283
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    References listed on IDEAS

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    1. Gary S. Hansen & Birger Wernerfelt, 1989. "Determinants of firm performance: The relative importance of economic and organizational factors," Strategic Management Journal, Wiley Blackwell, vol. 10(5), pages 399-411, September.
    2. Thomas Bieger & Andreas Wittmer, 2011. "From the Aviation Value Chain to the Aviation System," Springer Texts in Business and Economics, in: Andreas Wittmer & Thomas Bieger & Roland Müller (ed.), Aviation Systems, chapter 0, pages 61-75, Springer.
    3. Corina GAVREA & Liviu ILIEŞ & Roxana STEGEREAN, 2011. "Determinants Of Organizational Performance: The Case Of Romania," Management & Marketing, Economic Publishing House, vol. 6(2), Summer.
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    Cited by:

    1. Jonathan Chih Win Zaw Tun & Papitchaya Wisankosol, 2021. "The Impact of an ODI on the Development of Leadership, Employee Motivation and Employee Engagement towards Better Performance of Employees: A Case Study," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 22-43.
    2. Bijay Sigdel & Fuangfa Amponstira, 2020. "Effect of Corporate Social Responsibility on Firms Profitability: A Study on Small and Medium Enterprises in Pokhara City, Nepal," International Business Research, Canadian Center of Science and Education, vol. 13(10), pages 1-76, October.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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