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The effect of strategic alliance on performance


  • Park, Namgyoo K.
  • Cho, Dong-Sung


This study investigates codesharing alliances to see if they increase market shares of the carriers involved by analyzing a time-series data of 56 airlines over the 1986–1993 period. Our empirical results indicate: (a) codesharing, in fact, increases the carriers' market shares; (b) codesharings between existing airlines increase market shares less than those between relatively new carriers; and (c) the market-share-increasing effect of codesharing alliance is higher in markets with fewer competing carriers.

Suggested Citation

  • Park, Namgyoo K. & Cho, Dong-Sung, 1997. "The effect of strategic alliance on performance," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 155-164.
  • Handle: RePEc:eee:jaitra:v:3:y:1997:i:3:p:155-164
    DOI: 10.1016/S0969-6997(97)00026-4

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    References listed on IDEAS

    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, January.
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    4. Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(4), pages 579-601, December.
    5. Demsetz, Harold, 1982. "Barriers to Entry," American Economic Review, American Economic Association, vol. 72(1), pages 47-57, March.
    6. Glen L. Urban & Philip L. Johnson & John R. Hauser, 1984. "Testing Competitive Market Structures," Marketing Science, INFORMS, vol. 3(2), pages 83-112.
    7. Mody, Ashoka, 1993. "Learning through alliances," Journal of Economic Behavior & Organization, Elsevier, vol. 20(2), pages 151-170, February.
    8. Jean-François Hennart, 1991. "The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States," Management Science, INFORMS, vol. 37(4), pages 483-497, April.
    9. Fraser, Cynthia & Bradford, John W, 1983. " Competitive Market Structure Analysis: Principal Partitioning of Revealed Substitutabilities," Journal of Consumer Research, Oxford University Press, vol. 10(1), pages 15-30, June.
    10. Kogut, Bruce, 1989. "The Stability of Joint Ventures: Reciprocity and Competitive Rivalry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 183-198, December.
    11. J Michael Geringer, 1991. "Strategic Determinants of Partner Selection Criteria in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 41-62, March.
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    Cited by:

    1. Suen, Wilma W, 2002. "Alliance strategy and the fall of Swissair," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 355-363.
    2. Agusdinata, Buyung & de Klein, Wouter, 2002. "The dynamics of airline alliances," Journal of Air Transport Management, Elsevier, vol. 8(4), pages 201-211.
    3. Fateh Saci & Boualem Aliouat, 2014. "La création de valeur boursière des partenariats stratégiques et des fusions-acquisitions " Cas des sociétés du SBF 250 "," Working Papers halshs-01068790, HAL.
    4. Fateh Saci & Boualem Aliouat, 2014. "Do strategic partnerships create value? "The empirical case of SBF 250 firms"," Post-Print halshs-01068783, HAL.

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