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Innovation In Commoditized Services: A Study In The Passenger Airline Industry

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  • MAXIMILIAN ROTHKOPF

    (EBS Business School, Rheingaustrasse 1, 65375 Oestrich-Winkel, Germany)

  • ANDREAS WALD

    (European Business School (EBS), 37/39 Bd. Murat, 75016 Paris, France;
    Strascheg Institute for Innovation and Entrepreneurship, Germany)

Abstract

The purpose of this study is to analyze how innovation is leveraged in a commoditized service industry. Focusing on the passenger airline industry, we describe the characteristics of commoditized industries and show how the airline industry fulfills these criteria. Based on a sample of 30 airlines, we detect patterns of innovations and explore how airlines utilize innovation in the various categories. We present two case studies to demonstrate different approaches to innovation. Based on these findings, we develop a framework that suggests innovation priorities for different business models. Finally, we propose four levers to expand the core service offering and to successfully position an airline in a commoditized market environment.

Suggested Citation

  • Maximilian Rothkopf & Andreas Wald, 2011. "Innovation In Commoditized Services: A Study In The Passenger Airline Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 731-753.
    • Handle: RePEc:wsi:ijimxx:v:15:y:2011:i:04:n:s1363919611003301
    DOI: 10.1142/S1363919611003301
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    References listed on IDEAS

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    1. Alessandro Cento, 2009. "The Airline Industry," Contributions to Economics, Springer, number 978-3-7908-2088-1, March.
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    Cited by:

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    3. Vatankhah, Sanaz & Bamshad, Vahideh & Altinay, Levent & De Vita, Glauco, 2023. "Understanding business model development through the lens of complexity theory: Enablers and barriers," Journal of Business Research, Elsevier, vol. 155(PA).
    4. Pereira, Bruno Alencar & Lohmann, Gui & Houghton, Luke, 2021. "Innovation and value creation in the context of aviation: a Systematic Literature Review," Journal of Air Transport Management, Elsevier, vol. 94(C).
    5. Xuhua Hu & Bertha Ada Danso & Isaac Adjei Mensah & Michael Addai, 2020. "Does Innovation Type Influence Firm Performance? A Dilemma of Star-Rated Hotels in Ghana," Sustainability, MDPI, vol. 12(23), pages 1-27, November.
    6. Sun, Xiaoqian & Wandelt, Sebastian & Zheng, Changhong & Zhang, Anming, 2021. "COVID-19 pandemic and air transportation: Successfully navigating the paper hurricane," Journal of Air Transport Management, Elsevier, vol. 94(C).
    7. Tuchen, Stefan & Arora, Mohit & Blessing, Lucienne, 2020. "Airport user experience unpacked: Conceptualizing its potential in the face of COVID-19," Journal of Air Transport Management, Elsevier, vol. 89(C).
    8. Santos de Oliveira, Denise & Caetano, Mauro, 2019. "Market strategy development and innovation to strengthen consumer-based equity: The case of Brazilian airlines," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 103-110.
    9. Tomasz Stanisław Szopiński & Robert Nowacki, 2015. "The Influence of Purchase Date and Flight Duration over the Dispersion of Airline Ticket Prices," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 9(3), September.

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