Introducing a Coopetition Model for Domestic Airlines in Iran

Document Type : Research Paper

Authors

1 PhD., Department of Business Management, Kish Campus, University of Tehran, Kish, Iran.

2 Associate Prof., Department of Business Management, Faculty of Business Management, College of Management, University of Tehran, Tehran, Iran.

3 Associate Prof., Department of MBA, Faculty of Business Management, College of Management, University of Tehran, Tehran, Iran.

Abstract

Objective
This research aims to propose a coopetition model specifically designed for Iranian airline companies. As a result of shifts in both internal and external landscapes, along with the swift advancements in technology encapsulated by the term VUCA (signifying volatility, uncertainty, complexity, and ambiguity), the conventional dichotomy of pure competition or complete cooperation has diminished in its efficacy. In its place, a novel mode of collaboration has emerged, characterized by a blend of cooperation to generate value and competition in the pursuit of value, termed "co-competitiveness." Considerable research efforts have been dedicated to this strategy, and it has garnered significant attention on both a global and Iranian scale. Recognizing the significance of this subject from both theoretical and practical perspectives, and acknowledging the existing gap in the examination of competition within domestic airline companies, this article aims to investigate the factors, mechanisms, and outcomes of coopetition in this particular industry.
 
Methodology
To identify competitors, processes, and consequences in the airline industry, Strauss and Corbin's grounded theory, which includes the conditions, strategies, and consequences of each phenomenon, was used in this study. In-depth interviews were conducted with 12 industry and academic experts, and the process model of co-opetition in airlines was extracted. After conducting interviews with the 11th expert, we reached theoretical saturation, but for more certainty, the 12th expert was also interviewed. Model extraction based on open, axial, selective coding, storyline, process coding, and conditional/consequential conditional matrix. Researchers used theoretical and operational analytical notes and 15 years of observations in this industry to extract the theory and refine the model.
 
Findings
The core category was revealed as the hidden opportunity and concerns about implementation. Causal conditions' category with 18 concepts and three subcategories, contextual conditions with 10 concepts and three subcategories, interventional conditions with 16 concepts and four subcategories, strategies with 29 concepts and three subcategories, and consequences with 25 concepts and three subcategories formed the final model. Each of these categories is expected to have a significant impact on the growth of the aviation industry, and the existence of each of them reveals many loopholes in improving the performance of airline companies. The concepts requiring reform were effectively pinpointed, and a clear assessment of the strengths and weaknesses in the application of each concept was provided.
 
Conclusion
Implementing this strategy, which revolves around the development of a coopetition model in the airline industry, along with the identification of conditions, strategies, and resulting outcomes, is poised to foster industry growth, enhance airline performance, and boost customer satisfaction. Airlines have the potential to augment their profits, expand their market share, and promote growth while simultaneously reducing overhead costs through the implementation of a coopetitive strategy. Moreover, by leveraging one another's expertise, they can significantly enhance their capacity to innovate, effectively doubling opportunities, and mitigate the outflow of currency.

Keywords

Main Subjects

References

 
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Journal of Business Management
Volume 15, Issue 4
2023
Pages 646-668

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