TY - JOUR
T1 - Here we go again...the Permanently Failing Organization
T2 - An application to the airline industry in Eastern Europe
AU - Akbar, Yusaf
AU - Németh, Adél
AU - Niemeier, Hans Martin
PY - 2014/3
Y1 - 2014/3
N2 - This paper analyzes the performance of the Central and Eastern Europe airline industry through the lens of the "Permanently Failing Organization" (PFO) framework. Based on elite interviews from management in the three airlines but also from other organizations within the industry, it confirms the salience of key theoretical features of the PFO framework by providing evidence for the persistence of short-term decision making; ongoing contradictions between articulated strategy and its poor or non existent implementation and frequently assiduous intervention by governments that rather than fostering decisive decision-making served to do the opposite. These factors contributed to reinforcing deeply held beliefs in the management that they would survive despite the obvious problems they have faced. External stakeholders - especially governments should reflect carefully on their role in fostering permanent failure.
AB - This paper analyzes the performance of the Central and Eastern Europe airline industry through the lens of the "Permanently Failing Organization" (PFO) framework. Based on elite interviews from management in the three airlines but also from other organizations within the industry, it confirms the salience of key theoretical features of the PFO framework by providing evidence for the persistence of short-term decision making; ongoing contradictions between articulated strategy and its poor or non existent implementation and frequently assiduous intervention by governments that rather than fostering decisive decision-making served to do the opposite. These factors contributed to reinforcing deeply held beliefs in the management that they would survive despite the obvious problems they have faced. External stakeholders - especially governments should reflect carefully on their role in fostering permanent failure.
KW - Entry and exit
KW - Liberalization and deregulation
KW - Permanently Failing Organizations
UR - http://www.scopus.com/inward/record.url?scp=84887812831&partnerID=8YFLogxK
U2 - 10.1016/j.jairtraman.2013.10.003
DO - 10.1016/j.jairtraman.2013.10.003
M3 - Article
AN - SCOPUS:84887812831
SN - 0969-6997
VL - 35
SP - 1
EP - 11
JO - Journal of Air Transport Management
JF - Journal of Air Transport Management
ER -