Abstract
This paper examines the relationships between knowledge capability, strategic change, and firm performance in the U.S. airline industry from regulation to deregulation. We test a theoretical model in which knowledge capability exerts a direct effect on strategic change; strategic change then influences firm performance. The environment moderates the relationship between strategic change and firm performance. The sample of the study includes the Major U.S. air carriers from 1972-1995. We operationalize knowledge capability as the education level and functional diversity of top management. Strategic change is measured as change in hub concentration, a key variable for the airlines. The data for the present study come from archival sources. Time series statistics with fixed effects are used to examine the relationships between the variables. The results support our theoretical model: knowledge capability influences change in strategy which, in turn, influences firm performance. The results also support the role of the environment as a moderator in the relationship between strategic change and firm performance.
| Original language | English |
|---|---|
| DOIs | |
| State | Published - 2006 |
| Event | 66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA, United States Duration: Aug 11 2006 → Aug 16 2006 |
Conference
| Conference | 66th Annual Meeting of the Academy of Management, AOM 2006 |
|---|---|
| Country/Territory | United States |
| City | Atlanta, GA |
| Period | 8/11/06 → 8/16/06 |
Keywords
- Environment
- Knowledge capabiity
- Strategic change
ASJC Scopus subject areas
- Management Information Systems
- Management of Technology and Innovation