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Strategic management of a family-owned airline: Analysing the absorptive capacity of Cimber Sterling Group A/S

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  • Boyd, Britta
  • Hollensen, Svend

Abstract

The concept of absorptive capacity (ACAP) observing a firm's ability to value, assimilate and utilise new external knowledge is applied in this paper. This case study analysis focuses on the strategic management processes and competitiveness of the Cimber Sterling airline. The aim is to discover resources and capabilities that lead to competitive advantages within the aviation industry. From an ACAP perspective, Cimber Sterling Group A/S was analysed by interviewing selected owners, managers and employees of the airline. A comparison within the airline industry regarding external factors and the strategic management of other selected low-cost airlines is part of the ACAP concept. The analysis shows to what extent Cimber Sterling Group A/S, as a Danish family business, copes with increasing competition and critical situations, such as the recent volcanic ash cloud and the financial crisis. Identifying the potential and realised capacity of the strategic management of airlines was revealed as a source of strategic competitiveness. The ACAP was improved through stakeholder experience, strategic flexibility, networking capabilities and customer orientation, leading to a competitive advantage realisation in the low-cost airline market.

Suggested Citation

  • Boyd, Britta & Hollensen, Svend, 2012. "Strategic management of a family-owned airline: Analysing the absorptive capacity of Cimber Sterling Group A/S," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 70-78.
    • Handle: RePEc:eee:fambus:v:3:y:2012:i:2:p:70-78
    DOI: 10.1016/j.jfbs.2012.03.003
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    Cited by:

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    2. Shu-Hsien Liao & Chih-Chiang Chen & Da-Chian Hu & Yu-chun Chung & Min-Ju Yang, 2017. "Developing a sustainable competitive advantage: absorptive capacity, knowledge transfer and organizational learning," The Journal of Technology Transfer, Springer, vol. 42(6), pages 1431-1450, December.
    3. Goel, Sanjay & Mazzola, Pietro & Phan, Phillip H. & Pieper, Torsten M. & Zachary, Ramona K., 2012. "Strategy, ownership, governance, and socio-psychological perspectives on family businesses from around the world," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 54-65.
    4. Comi, Alice & Eppler, Martin J., 2014. "Diagnosing capabilities in family firms: An overview of visual research methods and suggestions for future applications," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 41-51.
    5. Mikel Alayo & Txomin Iturralde & Amaia Maseda & Gloria Aparicio, 2021. "Mapping family firm internationalization research: bibliometric and literature review," Review of Managerial Science, Springer, vol. 15(6), pages 1517-1560, August.
    6. Miroshnychenko, Ivan & Strobl, Andreas & Matzler, Kurt & De Massis, Alfredo, 2021. "Absorptive capacity, strategic flexibility, and business model innovation: Empirical evidence from Italian SMEs," Journal of Business Research, Elsevier, vol. 130(C), pages 670-682.
    7. Delbari, Seyyed Ali & Ng, Siew Imm & Aziz, Yuhanis Abdul & Ho, Jo Ann, 2016. "An investigation of key competitiveness indicators and drivers of full-service airlines using Delphi and AHP techniques," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 23-34.

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