AbstractsBusiness Management & Administration

National Culture and its Impact on Airline Corporate Culture

by Pruet Boobphakam

Institution: University of New South Wales
Department: Aviation
Year: 2015
Keywords: Young and Smart Management, Speak Up; Decentralize, Responsibilities, Flexible, Empowered, Listen for advice, Open Discussion; Flexible and Address Change, Welcome New Ideas, New Idea Development, Initiatives, Young Staff bring Ideas; Team Work, Joint Effort, Challenge; Lower Level Can Speak Up, Open to Listen; Staff Can Share Idea; Leadership, Management top-down Decision; Hierarchy, Central Decision; Flat organization, Challenging, Enthusiastic/Recognition younger staff, Efficient department, Open discussion, Career part development, Training, Skills, Experience, No seniority, Cost control; Encourage freethinking, Freedom, Skill, Group, Relation, and Improvement; Supportive
Record ID: 1045880
Full text PDF: http://handle.unsw.edu.au/1959.4/54284


The airline industry comprises a range of stakeholders including governments, industry organizations, local carriers, shareholders, and competitors seeking to access bilateral traffic rights between countries. The airline industry is required to work under a regulatory framework crafted sixty years ago to force all airlines to operate under the same international rules. These rules simultaneously aimed to maximize safety while restricting competition. Suppliers of aircraft, engines, reservation systems and airports are accessed by all competitors and provide airlines with little opportunity to achieve greater efficiency or competitive advantage. Despite this, each airline finds its place within the industry. The differences result from many factors including the economic freedom of their home country, their business model, nationality and ownership. Using mixed methods approach, a series of interviews with airline executives in Germany, Switzerland, Singapore, Thailand, Japan and Australia were positioned in Hofstede’s model of national cultures. Analysis of the interview transcripts using Hofstede’s keywords enabled the impact of national culture on airline decision-making to be studied. While airlines from small power-distance and individualist cultures are somewhat more likely to base decision-making on a broader involvement between employees and management, the overall finding of the interviews with airline executives is that Hofstede’s framework is not a strong predictor of airline executive behavior.