12. Integrative case Airlines – a global industry and exemplary

enterprises

Learning objectives

• explain the complementarity of three core societal institutions: the systems of corporate governance, competence generation/personnel management and industrial relations

• understand the need to distinguish between different levels of analysis when tracing the impact of globalization forces

• analyse interdependencies, harmonization, translation and strategic sorting effects

• explain why and how resilience often prevails against convergence, by a more detailed analysis using the mentioned effects

• appraise whether institutional theory is sufficiently powerful to analyse the impact of globalization pressures

• evaluate the role of cultural characteristics in explaining change at the societal, organization and management levels

• reflect on the supposed link between globalization and MNCs.

Chapter Outline

12.1 Introduction 12.2 The industry: History, regulation and business models

History The postwar international order Deregulation and new business models Types of airlines The value chain and internationalization

12.3 KLM 12.4 Southwest Airlines 12.5 China Southern Airlines 12.6 Lufthansa Group 12.7 Conclusions

Study questions Further reading NotesReferences

Study questions

1. Explain why, despite globalization, the concept of a ‘national’ innovation system still makes sense.

2. Explain why institutions and culture matter in an analysis of an innovation system.

3. Explain how history matters in systems of innovation. 4. Explain in what way the anti-trust statutes of the USA have had an effect on the

structure and performance of the innovation system. 5. Explain the factors that are argued to have contributed to the prominent role of

new, small firms in the postwar US innovation system. 6. Explain how government protection and promotion in Asia helped the

indigenous industry. 7. Explain how an emphasis on tacit knowledge may both stimulate and hamper

innovation. 8. Explain the features of the German system of innovation that contribute to the

German industry’s strength in the industries in which it is strong. 9. Explain the features of the innovation system of France that have contributed to

an emphasis on large-scale and systemic innovation.