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The Role of Digitalization in the Airline Industry Performance AMID COVID-19: Evidence from Emirate Airline Balanced Scorecard Performence

Author

Listed:
  • Babatunde A. OKUNEYE

    (Department of Economics, Faculty of Social Sciences, Olabisi Onabanjo University, Iwoye, Ogun State, Nigeria)

  • Oluwatosin O. OGUNYOMI-OLUYOMI

    (Department of Economics, College of Humanities, Management and Social Sciences, Mountain Top University, Magboro, Ogun State, Nigeria)

Abstract

A number of studies in the digitalization-organizational performance literature have evaluated airline performance from the traditional performance theory; yet, fewer studies have evaluated the role of digitalization to optimize organizational bottom line performance. In view of the importance of digitalization-organization bottom line performance, this study empirically evaluates the role of digitalization in the airline performance before and during COVID-19 using the balanced scorecard performance model in the sample study, Emirate airline between 2015 and 2020. Importantly, multiple Pearson Product Moment correlation and descriptive statistics methods were used to estimate the relationship among the balanced scorecards performance. Also, the differential impact was used to show the differential impact and recovery period between before-COVID and during COVID-19 on the balanced scorecards performance. The empirical results showed that the role of digitalization practices is more effective in non-financial bottom lines than financial bottom line at both before and during COVID-19 in this study. Further, the study concluded that digitalization practices before COVID-19 enhances non-financial bottom lines than financial bottom lines whereas the role of digitalization practices during COVID-19 enhances neither financial nor non-financial bottom lines in Emirate airline. Therefore, this study recommends the need for Emirate airline management to further intensify and integrate digitalization practices across all the balanced scorecard bottom lines, especially the financial bottom lines such as revenue, operating cost and net debts to remain immune from current and future external shocks as well as become financial and non-financial sustainable.

Suggested Citation

  • Babatunde A. OKUNEYE & Oluwatosin O. OGUNYOMI-OLUYOMI, 2022. "The Role of Digitalization in the Airline Industry Performance AMID COVID-19: Evidence from Emirate Airline Balanced Scorecard Performence," Business & Management Compass, University of Economics Varna, issue 1-2, pages 365-379.
    • Handle: RePEc:vrn:journl:y:2022:i:1-2:p:5-21
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    References listed on IDEAS

    as
    1. Fanyu Meng & Wenwu Gong & Jun Liang & Xian Li & Yiping Zeng & Lili Yang, 2021. "Impact of different control policies for COVID-19 outbreak on the air transportation industry: A comparison between China, the U.S. and Singapore," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-19, March.
    2. Chia-Nan Wang & Tsang-Ta Tsai & Hsien-Pin Hsu & Le-Hoang Nguyen, 2019. "Performance Evaluation of Major Asian Airline Companies Using DEA Window Model and Grey Theory," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    3. KİRACI Kasim & BAKIR Mahmut, 2020. "Evaluation Of Airlines Performance Using An Integrated Critic And Codas Methodology: The Case Of Star Alliance Member Airlines," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 15(1), pages 83-99, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Digitalization; Emirate Airline Balanced Scorecard Performance; COVID-19; Descriptive Analysis;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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