IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v15y2011i04ns1363919611003301.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919611003301
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919611003301?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alessandro Cento, 2009. "The Airline Industry," Contributions to Economics, Springer, number 978-3-7908-2088-1, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Balci, Gökcay & Cetin, Ismail Bilge & Tanyeri, Mustafa, 2018. "Differentiation of container shipping services in Turkey," Transport Policy, Elsevier, vol. 61(C), pages 26-35.
    2. Sun, Xiaoqian & Wandelt, Sebastian & Zhang, Anming, 2021. "Technological and educational challenges towards pandemic-resilient aviation," Transport Policy, Elsevier, vol. 114(C), pages 104-115.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. L. Moreno-Izquierdo & A.B. Ramón-Rodríguez & J.F. Perles-Ribes, 2016. "Pricing Strategies of the European Low-Cost Carriers Explained Using Porter's Five Forces Model," Tourism Economics, , vol. 22(2), pages 293-310, April.
    2. de Wit, Jaap G. & Zuidberg, Joost, 2016. "Route churn: an analysis of low-cost carrier route continuity in Europe," Journal of Transport Geography, Elsevier, vol. 50(C), pages 57-67.
    3. Kuo Cheng Chung & Paul Juinn Bing Tan, 2022. "Options to Improve Service Quality to Enhance Value Co-Creation for Customers in the Aviation Industry in Taiwan," SAGE Open, , vol. 12(1), pages 21582440221, March.
    4. Yasar Mehmet & Gerede Ender, 2020. "Identification of factors affecting competitive tension in the domestic air transport market in Turkey," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(2), pages 118-139, June.
    5. Bakır Mahmut & Akan Şahap & Durmaz Emrah, 2019. "Exploring service quality of low-cost airlines in Europe: An integrated MCDM approach," Economics and Business Review, Sciendo, vol. 5(2), pages 109-130, June.
    6. Okþan Kibritci Artar, 2015. "Analysis Of The Relationship Between Economic Growth And The Aviation Sector Investments," Eurasian Business & Economics Journal, Eurasian Academy Of Sciences, vol. 2(2), pages 106-120, July.
    7. Davison, Lisa & Ryley, Tim, 2013. "The relationship between air travel behaviour and the key life stages of having children and entering retirement," Journal of Transport Geography, Elsevier, vol. 26(C), pages 78-86.
    8. lo Storto, Corrado, 2018. "Ownership structure and the technical, cost, and revenue efficiency of Italian airports," Utilities Policy, Elsevier, vol. 50(C), pages 175-193.
    9. Hüschelrath, Kai & Müller, Kathrin, 2011. "Low cost carriers and the evolution of the US airline industry," ZEW Discussion Papers 11-051, ZEW - Leibniz Centre for European Economic Research.
    10. Ronal Reddy, 2021. "Reasons for changes of passenger perceptions of low cost carriers identified on social media - a case study on Jetstar Airways - A literature review," Technium Social Sciences Journal, Technium Science, vol. 19(1), pages 520-534, May.
    11. Kan Tsui, Wai Hong & Balli, Hatice Ozer & Gilbey, Andrew & Gow, Hamish, 2014. "Operational efficiency of Asia–Pacific airports," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 16-24.
    12. Vieira, José & Câmara, Gualter & Silva, Francisco & Santos, Carlos, 2019. "Airline choice and tourism growth in the Azores," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 1-6.
    13. Mahboubeh Bahreini & Cahit Adaoglu, 2018. "Dividend payouts of travel and leisure companies in Western Europe," Tourism Economics, , vol. 24(7), pages 801-820, November.
    14. Herwina Rosnan & Razmah Mahmod, 2012. "Business Turnaround Plan: The Experience of Malaysia Airlines," South Asian Journal of Business and Management Cases, , vol. 1(2), pages 211-221, December.
    15. Alderighi, Marco & Nicolini, Marcella & Piga, Claudio A., 2016. "Targeting leisure and business passengers with unsegmented pricing," Tourism Management, Elsevier, vol. 54(C), pages 502-512.
    16. Lordan, Oriol & Sallan, Jose M. & Escorihuela, Nuria & Gonzalez-Prieto, David, 2016. "Robustness of airline route networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 445(C), pages 18-26.
    17. Fukushi, Mitsuyoshi & Delgado, Felipe & Raveau, Sebastián & Santos, Bruno F., 2022. "CHAIRS: A choice-based air transport simulator applied to airline competition and revenue management," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 297-315.
    18. Mallikarjun, Sreekanth, 2015. "Efficiency of US airlines: A strategic operating model," Journal of Air Transport Management, Elsevier, vol. 43(C), pages 46-56.
    19. Joshan, Saeid & Maertens, Sven, 2020. "Low cost carriers in the Middle East and North Africa (MENA) region: Emergence and barriers to development," Journal of Transport Geography, Elsevier, vol. 87(C).
    20. Lordan, Oriol & Sallan, Jose M. & Simo, Pep, 2014. "Study of the topology and robustness of airline route networks from the complex network approach: a survey and research agenda," Journal of Transport Geography, Elsevier, vol. 37(C), pages 112-120.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:15:y:2011:i:04:n:s1363919611003301. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.