Intangible resources of competitive advantage: Analysis of 49 Asian airlines across three business models

James Pearson, D. Pitfield, T. Ryley

Research output: Contribution to journalArticle

13 Citations (Scopus)
1241 Downloads (Pure)

Abstract

Without sustainable competitive advantage firms have limited economic reasons to exist and will decline. Competitive advantage concerns the factors which provide competitive strength. This paper is based upon the resource-based view which considers firm resources to be heterogeneous and which believes that firms only have a small bundle of core resources irrespective of their overall performance. This research establishes the role of 36 intangible resources for 49 Asian airlines across three business models: network airlines; low-cost subsidiaries from network airlines; and low-cost carriers. It uses the VRIN framework which examines whether resources are valuable, rare, inimitable, and non-substitutable. Research participants distribute points between their chosen seven resources according to their perceived role in firm performance. Resources which meet all four requirements of VRIN are considered core competences and sources of sustained advantage. Across all 49 Asian airlines, the top-three most important resources of advantage are slots, brand, and product/service reputation. While these core resources are predictable, they have not previously been proven within the context of airlines, let alone geographically and by airline model. Results show that the core bundle of resources vary for each model, which helps to explain the difference in performance across models, and that some resources which were expected to be high-ranking, such as organisational culture and customer focus, were not.
Original languageEnglish
Pages (from-to)179-189
JournalJournal of Air Transport Management
Volume47
DOIs
Publication statusPublished - 12 Jun 2015

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resource
resources
Industry
firm
analysis
Competitive advantage
Business model
Resources
Asia
Airlines
Intangible resources
Costs
performance
Economics
organizational culture
costs
cost
reputation
ranking
customer

Bibliographical note

NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Air Transport Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Air Transport Management, [VOL 47, (2015)] DOI: 10.1016/j.jairtraman.2015.06.002

© 2015, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

  • Network airlines
  • Low-cost carriers
  • Low-cost subsidiaries
  • Resources
  • Slots

Cite this

Intangible resources of competitive advantage: Analysis of 49 Asian airlines across three business models. / Pearson, James; Pitfield, D.; Ryley, T.

In: Journal of Air Transport Management, Vol. 47, 12.06.2015, p. 179-189.

Research output: Contribution to journalArticle

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