FIRM´S RESOURCE CHARACTERISTICS AND ALLIANCE FORMATION IN THE AIRLINE INDUSTRY : FIRM´S RESOURCE CHARACTERISTICS AND ALLIANCE FORMATION IN THE AIRLINE INDUSTRY
International Business Alliance Formation Strategy Firm´s Resource Characteristics Airline Industry;
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The purpose of this research is to explain why airlines should form a strategic alliance. Based on the resource base view theory, we develop three predictors; firm´s size, number of hubs and number of destinations and their effect in an alliance formation. As well, we included two moderator effects based on firm experience that was the firm´s codeshare experience beside the alliance and the firm´s age. We tested our model through a binary logistic regression to assess what resource characteristic of the firm affect the formation of a strategic alliance. The sample of this research was collected from the top 200 passenger airlines for the year 2012 according to the ICAO classification. The findings suggest that firm´s size, number of hubs, and number of destinations have a positive effect on the formation of strategic alliances. However, our moderator was just partially supported. The firm´s codeshare experience strengthens the relation between firm´s size, number of destination and hubs and the formation of strategic alliance; however, the firm´s age just strengthens the relationship between number of hubs and the alliance formation. This paper offer two theoretical contributions, first it shows empirically which resources characteristics affect alliance formation in the airline industry; and, second it helps to solve the theoretical dilemma that larger firms are more willing to join SA. However, this study has certain limitations that should be considered for future researches such as how long should an airline join a strategic alliance, the diversity of strategic alliance, the scope of strategic alliances, the function of different hubs airport and its effects on alliance formation.