Multilateral airline alliances: Balancing strategic constraints and opportunities |
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| Affiliation: | 1. Department Strategy, CERMAS Research Centre, Toulouse Business School, 20 Boulevard Lascrosses-BP 7010, 31068 Toulouse, France;2. Department Strategy, Toulouse Business School, 20 Boulevard Lascrosses-BP 7010, 31068 Toulouse, France;1. Samsung SDS, 707-19 Yeoksam2-dong, Gangnam-gu, Seoul 135-918, South Korea;2. Technology Management, Economics and Policy Program, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 151-744, South Korea;3. Technology Management, Economics and Policy Program, and Department of Industrial Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 151-744, South Korea;1. School of Economics and Management, Harbin Engineering University, Harbin 150001, PR China;2. Management School, Harbin University of Commerce, Harbin 150028, PR China;1. Department of Shipping and Transportation Management, National Kaohsiung University of Science and Technology, 142, Haijhuan Road, Nanzih District, Kaohsiung, 811, Taiwan;2. Department of Distribution Management, National Taichung University of Science and Technology, 129, Section 3, Sanmin Road, North District, Taichung, 401, Taiwan |
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| Abstract: | This paper explores multilateral airline alliances through the lenses of structural holes and network closure. The structural holes theory sees network ties as opportunities linking together separate network segments through brokers and weak ties. The opposing view argues that network closure would generate superior “social capital” and thus superior “economic rent” as we would have more trust, reputation and cooperation within a closed group with strong internal ties. We discuss these theories in the context of multilateral airline alliances and argue that the two concepts in combination advance our ability to explain alliance processes in the airline industry. |
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