18Feb 2017

FOUNDATIONS AND IMPLICATIONS OF COMPETITIVE INERTIA IN AIRLINES BUSINESS: A STUDY OF THE NEPALI AIRLINES INDUSTRIES

  • PhD Scholar, Kathmandu University School of Management, Nepal.
  • MPhil Scholar, Kathmandu University School of Management, Nepal.
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This paper explores the foundations and implications of competitive inertia in Nepali airlines industry. Eighty respondents answered on a structured Likert typequestionnaire in two stages. Results of the field study found a significant relationship between competitive inertia and tactical actions but no relation of competitive inertia with strategic actions. Variables for tactical actions included price cut, promotion with other non-airlines companies and commission to agents while variables for strategic actions included new services and frequent flyer programs. The study found that past history for inertia variedbetween tactical and strategic actions, the previous being determined more by performance and the second by growth in markets. These outcomesadvocate the action of two separate models of the organizational learning, one reactive, the other experimental and that there is competitive inertia in the strategic actions and no competitive inertia in tactical actions. Implications of the findings are discussed.

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[Dipak Prasad Bastola and Krishna Aryal. (2017); FOUNDATIONS AND IMPLICATIONS OF COMPETITIVE INERTIA IN AIRLINES BUSINESS: A STUDY OF THE NEPALI AIRLINES INDUSTRIES Int. J. of Adv. Res. 5 (Feb). 394-399] (ISSN 2320-5407). www.journalijar.com

Dipak Prasad Bastola
Aerospace Management Research Scholar

DOI:

Article DOI: 10.21474/IJAR01/3163      
DOI URL: https://dx.doi.org/10.21474/IJAR01/3163

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