Deregulation, Business Strategy, and Wages in the Airline Industry

NANCY BROWN JOHNSON, RAKESH B. SAMBHARYA, PHILIP BOBKO

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

Abstract

This study assesses empirically the relationship between business strategy and wages within the context of a significant environmental change—deregulation of the airline industry. Regression results provide limited support for the hypotheses that firms' business strategies would lead to systematic differences in average earnings levels of airline carriers, depending on whether or not the industry was regulated, and that these strategies would operate over and above firms' ability to pay higher wages. It appears that business strategies may be linked to their human resource outcomes even in a heavily unionized environment.

Original languageEnglish
Pages (from-to)419-430
Number of pages12
JournalIndustrial Relations: A Journal of Economy and Society
Volume28
Issue number3
DOIs
StatePublished - Sep 1989

ASJC Scopus subject areas

  • Industrial relations
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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