Management Emphasis and Performance in the Airline Industry: An Exploratory Multilevel Analysis

Transportation Research Part E: Logistics and Transportation Review, Vol. 40, No. 6, 2004

Posted: 23 Nov 2010 Last revised: 20 Feb 2013

Date Written: November 1, 2004

Abstract

Carrying through decisions in organisations is inherently micro-level, while the aggregated performance implication of decisions is a macro-level phenomena. This paper determines through exploratory factor analysis, factors associated with airline performance using a two-level bottom-up hierarchical approach. The determinant factors are used to test, through regression analysis, the relationship across lower and higher level factors and between the higher level factors and performance (distress versus non-distress). The results showed that airlines having higher relative score on productivity and brand image were less likely to be under financial distress, while airlines having higher relative emphasis on market power were more likely to be under financial distress.

Keywords: Multilevel analysis, Business performance, Business distress, Airlines, Business success, Airline strategy, Airline performance

JEL Classification: M00

Suggested Citation

Gudmundsson, Sveinn Vidar, Management Emphasis and Performance in the Airline Industry: An Exploratory Multilevel Analysis (November 1, 2004). Transportation Research Part E: Logistics and Transportation Review, Vol. 40, No. 6, 2004, Available at SSRN: https://ssrn.com/abstract=1134272

Sveinn Vidar Gudmundsson (Contact Author)

Reykjavik University ( email )

Menntavegur 1
Reykjavik, 102
Iceland

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