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Alliance Structure and Success in the Global Airline Industry: An Empirical Investigation

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  • Sullivan, Ursula Y.

    (U of Illinois at Urbana-Champaign)

  • Coughlan, Anne T.

    (Northwestern U)

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    Abstract

    In this paper, we investigate the use of horizontal distribution alliances (HDAs) in the international airline industry. Airlines enter these alliances to effectively meet the needs of passengers in new and expanding markets. We apply transaction cost analysis (TCA) to develop a conceptual framework explaining the use of HDAs. From analyzing primary and secondary data, our results indicate that TCA is a viable theory for predicting the formation and success of an HDA.

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    File URL: http://www.business.illinois.edu/Working_Papers/papers/04-0113.pdf
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    Bibliographic Info

    Paper provided by University of Illinois at Urbana-Champaign, College of Business in its series Working Papers with number 04-0113.

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    Date of creation: Aug 2004
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    Handle: RePEc:ecl:illbus:04-0113

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    Web page: http://www.business.uiuc.edu/Working_Papers/Main.asp
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    1. John, George & Weitz, Barton A, 1988. "Forward Integration into Distribution: An Empirical Test of Transaction Cost Analysis," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(2), pages 337-55, Fall.
    2. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan, vol. 17(3), pages 1-26, September.
    3. Gatignon, Hubert & Anderson, Erin, 1988. "The Multinational Corporation's Degree of Control over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(2), pages 305-36, Fall.
    4. Preet S Aulakh & Masaaki Kotabe, 1997. "Antecedents and Performance Implications of Channel Integration in Foreign Markets," Journal of International Business Studies, Palgrave Macmillan, vol. 28(1), pages 145-175, March.
    5. W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan, vol. 23(1), pages 29-53, March.
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