Incumbent Inertia in Light of Disruptive Change in the Airline Industry

ebook Causal Factors and Top Management Moderators: An Empirical Case-Study-Based Analysis of the Response Behavior of Four European Incumbent Airlines to Emerging Competition from Low-Cost Carriers

By Oliver Viellechner

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Oliver Viellechner addresses the response behavior of incumbent firms when facing discontinuous change by innovative business models. Almost always, this entails a problem of inertia, i.e. the sluggishness of incumbent response due to insecurity in deciding on an adequate response strategy. Viellechner investigates disruptive change in the European airline industry during the 1990s, when low-cost airlines severely challenged established carriers. By conducting four case studies, he identifies new causes of inertia and reveals the role of top management teams in improving incumbent firms' responsiveness. Viellechner's new book is relevant to both researchers and managers. It links concepts of strategy, organizational and psychological research and sheds light on the new competitive structure of an industry which has been repeatedly challenged by entrants and external shocks.
Incumbent Inertia in Light of Disruptive Change in the Airline Industry