When Your Problem Becomes My Problem: The Impact of Airline IT Disruptions on On-Time Performance of Competing Airlines
COM2 Level 4
Executive Classroom, COM2-04-02
Abstract:
We study the effect of firm disruptions on competitor performance in the presence of shared resources in the US airline industry. While scholars have investigated both the effects of industry-wide and firm-specific disruptions, little work has examined the effect on competitors, who are increasingly reliant on interconnected resources in the digital age. Results from a series of recent IT outages indicate that performance is materially affected by a competitor's disruption. While the disruption of a full-service carrier significantly delays flights of all airlines leveraging its hubs, the exact opposite is observed during the disruption of a low cost carrier. Further, the effect is strongly moderated by the type of airlines reacting to the disruption. Implications for managers and theory are discussed within.
Biodata:
Min-Seok Pang is an Associate Professor of Management Information Systems and Milton F. Stauffer Research Fellow at Fox School of Business, Temple University. Prior joining in Temple, he was an Assistant Professor at School of Business, George Mason University. He has received a B.S. in Industrial Engineering and an M.S. in Management from Korea Advanced Institute of Science and Technology and holds a Ph.D. in Business Administration from University of Michigan. His research interests include strategic management of information technology in the public sector and technology-enabled public policies. His research has published in Management Science, MIS Quarterly, Information Systems Research, Journal of Information Technology, and Decision Support Systems. He received a Best Published Paper Award from Information Systems Research, an Outstanding Reviewer of the Year Award from MIS Quarterly, and an Outstanding Associate Editor Award from ICIS.