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The effects of 9/11/2001 on business strategy variability in the US air carrier industry

The effects of 9/11/2001 on business strategy variability in the US air carrier industry Purpose – This paper aims to examine the effects of 9/11/2001 on strategic variability in the US air carrier industry. The paper also seeks to examine the role of firm size in these relationships. Design/methodology/approach – The paper tests two different perspectives on organizational adaptation to environmental jolts: the punctuated equilibrium model and institutional isomorphism. The two counter hypotheses predict either increasing or decreasing variability in strategic response to 9/11, respectively. This is a longitudinal study of the US air carrier industry. The sample includes the major, national, and large regional air carriers in the US from 1979 (post‐deregulation) to 2008. The data come from archival sources. The study includes measures of variability in differentiation and low cost strategies as well as scope. Findings – Time series regressions examine the effects of the 9/11 jolt on business strategy variability in the majors, nationals, and large regionals. The results lend some support to both perspectives on organizational adaptation. Air carrier size had a significant relationship to strategic variability. Originality/value – The paper studies the behavior of firms in the US air carrier industry following the terrorist attacks of 9/11/2001. It examines two different theoretical approaches to environmental jolts and should provide useful information to both academics and managers who are interested in the effects of significant environmental changes on the behavior of an industry. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

The effects of 9/11/2001 on business strategy variability in the US air carrier industry

Irene Goll; Abdul A. Rasheed
Management Decision , Volume 49 (6): 14 – Jun 28, 2011
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References (63)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0025-1747
DOI
10.1108/00251741111143621
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to examine the effects of 9/11/2001 on strategic variability in the US air carrier industry. The paper also seeks to examine the role of firm size in these relationships. Design/methodology/approach – The paper tests two different perspectives on organizational adaptation to environmental jolts: the punctuated equilibrium model and institutional isomorphism. The two counter hypotheses predict either increasing or decreasing variability in strategic response to 9/11, respectively. This is a longitudinal study of the US air carrier industry. The sample includes the major, national, and large regional air carriers in the US from 1979 (post‐deregulation) to 2008. The data come from archival sources. The study includes measures of variability in differentiation and low cost strategies as well as scope. Findings – Time series regressions examine the effects of the 9/11 jolt on business strategy variability in the majors, nationals, and large regionals. The results lend some support to both perspectives on organizational adaptation. Air carrier size had a significant relationship to strategic variability. Originality/value – The paper studies the behavior of firms in the US air carrier industry following the terrorist attacks of 9/11/2001. It examines two different theoretical approaches to environmental jolts and should provide useful information to both academics and managers who are interested in the effects of significant environmental changes on the behavior of an industry.

Journal

Management Decision – Emerald Publishing

Published: Jun 28, 2011

Keywords: Business strategy; Airline industry; Environmental jolts; Institutional theory; United States of America; Terrorism

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