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"Alliance Structure and Success in the Global Airline Industry: An Empirical Investigation"

Ursula Y. Sullivan and Anne T. Coughlan


First Author :

Ursula Y. Sullivan
Business Administration
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820

(217) 333-1026
(217) 244-7969 (Fax)

Second Author :

Anne T. Coughlan
Northwestern University
2001 Sheridan Road
Evanston, IL 60208-2008

(847) 491-2719
(847) 491-2498 (Fax)

Abstract :
In this paper, we investigate the use of horizontal distribution alliances (HDAs) in the international airline industry. Airlines enter these alliances to effectively meet the needs of passengers in new and expanding markets. We apply transaction cost analysis (TCA) to develop a conceptual framework explaining the use of HDAs. From analyzing primary and secondary data, our results indicate that TCA is a viable theory for predicting the formation and success of an HDA.
Footnotes & Acknowledgements :
The authors thank the Marketing Department at the Kellogg Graduate School of Management for research support. Helpful comments were provided by Erin Anderson, Roger Calantone, Sachin Gupta, Dawn Iacobucci, Louis Stern, P. Rajan Varadarajan, and Edward Zajac. Mindy Ji provided valuable research assistance during the revisions. The authors also thank Edward Czepiel, Aaron Gellman, and Robert Neuschel from Northwestern University's Transportation Center for their help with background information on the airline industry. The authors remain responsible for any errors.
Manuscript Received : 2004
Manuscript Published : August, 2004
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