The Relationship Between Innovation and Company Performance in the Asian Airline Industry : An Empirical ResearchTools Sim, Nicholas Lorenzo (2015) The Relationship Between Innovation and Company Performance in the Asian Airline Industry : An Empirical Research. [Dissertation (University of Nottingham only)]
AbstractThe airline industry in Asia has been under tremendous competitive pressure especially with the entrance of low cost airline companies into the Asian market. This has caused premier airline companies to innovate and differentiate their services to sustain its competitive edge in the market. It is believed that innovation practices would improve the overall performance of a company. The aim of this research is to determine the relationship between innovation and company performance in the Asian airline industry. In addition, this research would also look behind the rationale behind the management team’s decision to innovate. Innovation and company performance indicators based on their annual reports were used. Results showed that company performance is positively affected by innovation in aspects of profitability and efficiency but shareholder’s wealth remained unaffected. This report also hinted the possibility of agency theory present within Asia’s airline market.
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