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United we stand, divided we fall: historical trajectory of strategic renewal activities at the Scandinavian Airlines System, 1946–2012

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  • Joseph Amankwah-Amoah
  • Jan Ottosson
  • Hans Sjögren

Abstract

Although the second half of the twentieth century saw the rise and fall of ‘multi-flag companies’ (MFCs) in the civil aviation industry, our understanding of how some managed to buck the trend and achieve longevity remains limited. This article advances business history and strategic management research by examining the strategic renewal activities of Scandinavian Airlines (formerly Scandinavian Airlines System [SAS]) during the period 1946–2012. The study sheds light on the key roles of private and state owners, rivals as well as banks, in critical financial phases are discussed in terms of longevity in the company. The longevity of the business stems from the leaders’ ability to develop as anticipated and respond to change in their competitive arena in close interaction with the owners. Thus, incumbent firms that strategically renew themselves prior to or during market reform, such as deregulation, enhance their chances of developing the size of their networks and revenue streams. Our main contribution to business history and strategic management literatures is the development of context-specific stages, which shed light on the evolution of strategic renewal activities and shifts from older processes and routines towards customer service and efficiency.

Suggested Citation

  • Joseph Amankwah-Amoah & Jan Ottosson & Hans Sjögren, 2017. "United we stand, divided we fall: historical trajectory of strategic renewal activities at the Scandinavian Airlines System, 1946–2012," Business History, Taylor & Francis Journals, vol. 59(4), pages 572-606, May.
    • Handle: RePEc:taf:bushst:v:59:y:2017:i:4:p:572-606
    DOI: 10.1080/00076791.2016.1250743
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    Cited by:

    1. Ding, Yang, 2021. "Antecedents and implications of legacy divestitures," Other publications TiSEM f4d5766f-6a5b-43a3-94df-1, Tilburg University, School of Economics and Management.
    2. Amankwah-Amoah, Joseph, 2020. "Stepping Up and Stepping Out of COVID-19: New Challenges for Environmental Sustainability Policies in the Global Airline Industry," MPRA Paper 101491, University Library of Munich, Germany.
    3. M.ª Magdalena Jiménez-Barrionuevo & Luis M. Molina & Víctor J. García-Morales, 2019. "Combined Influence of Absorptive Capacity and Corporate Entrepreneurship on Performance," Sustainability, MDPI, vol. 11(11), pages 1-26, May.
    4. Amankwah-Amoah, Joseph & Khan, Zaheer & Osabutey, Ellis L.C., 2021. "COVID-19 and business renewal: Lessons and insights from the global airline industry," International Business Review, Elsevier, vol. 30(3).
    5. Khan, Zaheer & Amankwah-Amoah, Joseph & Lew, Yong Kyu & Puthusserry, Pushyarag & Czinkota, Michael, 2022. "Strategic ambidexterity and its performance implications for emerging economies multinationals," International Business Review, Elsevier, vol. 31(3).
    6. Amankwah-Amoah, Joseph, 2018. "Why are so many African companies uncompetitive on the global stage? Insights from the global airline industry," MPRA Paper 83933, University Library of Munich, Germany.

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