Article Review Article Reviewed: Heracleous and Wirtz (2009) Strategy and organization at Singapore Airlines: Achieving sustainable advantage through dual strategy, Journal of Air Transport Management 15, pp. 274–279

The purpose of the research

There has been an increased interest in the study of organizations and how organizations can achieve sustainable competitive advantage in volatile and uncertain operating environments. In the article “Strategy and organization at Singapore Airlines: Achieving sustainable advantage through dual strategy” Heracleous and Wirtz (2009) examined the organizational elements that gave Singapore Airlines sustainable competitive advantage. The article focused on sustainable change, strategic alignment and dual strategy with Singapore Airlines. The main purpose of the article was to examine how Singapore Airlines management to sustain competitive advantage in the turbulent and complex business environment. The specific objectives of the study were not succinctly stated in SMART criterion. The research problem was succinctly stated in terms of severity and magnitude. However, the authors pointed out in the introductory section that the airlines industry has been plagued by several factors which include overcapacity, commoditization of offerings, competition intensity, and intermittent periods of underperformance. The environmental factors affecting the Singapore Airlines industry were identified and the financial costs of these challenges were identified indicating the severity of the problem. The problem was also exacerbated by the forecast of a bleak outlook of the industry’s performance. Heracleous and Wirtz (2009) indicated that the Singapore Airlines has consistently outperformed its competitors. The successful performance has been validated in terms of financial metrics and non-financial metrics (service quality awards). The authors’ submitted that the success of Singapore Airlines was a result of the adoption of a dual strategy, that is, differentiation and cost-leadership. The examination of the dual strategy elements was outlined through the SIA’s vertical alignment framework and the challenges that SIA could face were identified based on examining the vertical alignment framework elements. The examined elements include operating environment, strategy, core competencies, and organization. In view of complexity science theories and Chaos Theory the case research addressed organization development interventions and how they support positive outcomes in respect of SIA’s strategy and competitiveness. The case research focused on SIA’s competencies that support enhanced service quality. As an exploratory study, the research explored how SIA’s competencies and developed and supported by people strategies and internal innovation processes. Several appropriate references were used in all sections of the reviewed literature. Though representative of the structure of the paper, the abstract section of the study could have been improved by summarizing the findings of the study.

Data collection methods

As an exploratory study, the research adopted a case study approach of Singapore Airlines and collected both primary and secondary data relating to the identified problem. The authors examined database resources on SIA and the airline industry. The main variables of this study were sustainable advantage (dependent variable) and the dual strategy (independent variable).

In order to gain insight into how SIA configured its operational and functional strategies to develop the core competencies, the authors conducted 18 in-depth interviews. The authors interviewed executives between year 2001 and 2006. An appendix showing the designations of the participants has been attached to confirm reliability and validity. The interviews were transcribed and analyzed to identify practices and common themes. However, the authors did not mention the total population size, the sample frame, and the sampling methods that were used to select the 18 interview participants. Secondary data sources were used to review related, empirical, and theoretical literature on Singapore Airline Strategy, SIA organizational activity system, dual strategy, and turbulence on the horizon. The suggested literature review sections would have been: methods of enquiry to enhance the dual strategy, systems thinking and appreciative leadership theories in the airlines industry. Overally, the amount of literature used by the authors is reasonable in terms of applicability and amount. The research strategy, though not clearly stated by the authors, was predominantly exploratory, and also included the explanatory and descriptive dimensions focused on SIA. The research philosophy was interpretivist and positivism as the authors adopted a mixed method approach (qualitative and quantitative). The methodology could have been properly described and justified and sections of reliability, validity, and fitness of purpose could have been included.

Data Analysis Methods

As the study was an exploratory case research, the authors relied on interpretivism to draw conclusions. The approaches that the authors used to select the secondary sources of information were not explained. However, there was critical analysis and application of content data on differentiation and cost leadership to the case study. The analysis focused more on content data analysis covering Singapore Airline’s strategies, processes, people, reward systems, and in some instances culture. The primary data obtained through the 18 interviews was not properly analyzed as the authors predominantly analyzed secondary data. The authors did not make reference to any statistical techniques to analyze and interpret the results and draw conclusions.

Validity of conclusion

The article focused on an important topic within the airline industry and helps to draw lessons from the success of Singapore Airline. Based on the designations of the interviewed participants and their knowledge of the subject matter there is a favorable level of research rigour on this study. The study was also conducted over a five year period and as such the environmental turbulence issues were addressed. Validity can also be confirmed based on the quality of the secondary data sources used by the authors and the focus of the study on the strategic alignment at Singapore Airlines. The authors have also conducted studies in this area which adds to the validity of the findings.

Limitations of the research

The study adopted a methodological monism approach by using interviews as the only primary data collection method. The interviews also targeted people in managerial and executive positions, presumably sue to the focus on strategy and organization. However, the use of other data collection methods such as questionnaires and focus group discussions with lower level employees and other stakeholders such as customers would have been useful in validating the results and reduce the interference of chance. The study also exclusively focused on the internal configurations (operational and functional strategies) without integrating the influences of the macro environmental factors in enhancing Singapore Airlines’ competencies. The authors logically stated the conclusions under each section of the report. However, the conclusions drawn from each section of the research were not integrated to draw recommendations to Singapore Airlines. The recommendations were therefore limited to a call for additional research in the area. A separate section on recommendations to sustain competitive advantage would have been essential in view of the factors affecting the industry as identified in the introduction section.

Overall Critique

This was a very in-depth research project, particularly for a journal article. For the most part, it was well written and well organized. There was a definite need for a short review of literature to develop the situation. The study was also focused on the key variables and relied on industry specific models and sources. The results of the study are applicable to not only the Singapore Airlines, but to other airlines and organizations in other sectors.