Air Transport: A Catalyst for Growth

Chapter 1: Introduction

1.1 Background of the Research

The growth of diverse organizational collaboration is essential as it places bigger demands on the organization in a competitive global environment which is mostly found in the sector of technology. The enhanced complexity in an environment and climatic uncertainty has forced organizations to make such collaboration. There are various examples of the formation of collaboration or alliances throughout the world which had demonstrated competitive advantage. Air transport is a major contributor to the economy and contributes 1 percent to the GDP of the nation (Ramon-Rodriguez & et.al, 2010). In addition to that, air transport has a further impact on the development of trade and also tourism. Air transport is the faster and safer transport means which facilitates political, economic and social development. The growth of the networks of airlines international and the usage of the collaborative strategy has been interpreted as one of the effective airline strategies to improvise the profitability of the airline industry (Wit & Zuidberg, 2012). It exploits the new source of revenues while reduces the marginal costs but effective innovation management is highly required.

The innovation management is altering and is brought increasingly to the markets through the firm’s networks which are selected as per the comparative advantages and also operated in synchronized manners. The innovation value chain is deconstructed by the organization which owns lower costs; get access to knowledge and better skills. Firms have increased looking at the superior performance in the innovation by the means of collaboration (Zou, Oum & Yu, 2011). The managing of the collaboration is a flawed approach where production and innovation are fundamental activities. Collaboration entails the assessment of the globally dispersed knowledge, makes the sharing of the risk and also influence the newer capabilities. Apart from that, it is further reviewed that collaboration with other firms would also speed up the ideas which are connected with one another and give result to a new innovative idea. Speeding of the work is one of the competitive advantages which are beneficial and essential to delivers innovation (Grimme, 2011). Collaboration also assists in making connections with a larger number of people which could further provide various newer ideas and execute it into an innovative solution.

The viewing of the collaboration by the means of a larger lens highlights the ways to support the strategy of the airline's industry. It let the managers acknowledge the implications of the selection of the partners by making an assessment through different dimensions rather than viewing it from one direction. The alliance further helps the airlines firm to acknowledge the areas to make the usage of the collaboration and review the innovation value chains (Liou, 2012). Innovation is brought increasing in the market through the firm’s networks which are designated due to their unique capabilities and is operating in a coordinated manner. It is found that most of the company makes the usage of the collaboration strategy to combine with partners so as to attain the performance with superior’s innovation (Grimme, 2011). The Airlines industry which makes its operation in a global environment requires the assistance of innovative technology in order to achieve success and profitability. The collaboration arrangement is thus termed as effective means to execute each of its operations. Air industry collaborates with other organization so as to exploit newer ideas and opportunities so as to respond to the growing pressure and change in the needs of the customers (Vanhaverbeke & et.al., 2012). Since innovation’s aim is to produce new products so the airline industry collaborates with other companies to produce innovative ideas and products.

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1.2 Rationale of the Research

Innovation and collaboration are taken as one term due to their equal importance and values in the success of the organization. Collaborative innovation means the strategic partnership done in between the newer and established firms. Since the collaboration of two firms makes the combination of the strength of the two firms so there is a discovery of innovation and technology (Zou, Oum & Yu, 2011). Since this research is based on collaboration innovation in the airline industry so this research study is beneficial for those researchers who are planning to execute its operation on the airline industry. It is advantageous for the business firms that are planning to collaborate with innovation in their industry. This study will also be beneficial as it will review the challenges which could be faced by the new company when there is a shortage of capital and how partnership or collaboration would be effective ways to solve the problem. This research study will help the new researcher to review if collaboration is effective to form of innovation for the airline industry or not.

Aim of the Research

The aim of this research study is to analyses whether collaboration is effective to form of innovation for an airline alliance.

1.4. The objective of the Research

The objectives of the research study are as follows:

To evaluate the value of Collaborative Innovation

To effectively manage the collaborative Innovation

To analyse the public policy model for the means of Collaborative Innovation

To evaluate the effects of innovation collaboration on the airline alliance

1.5. Question of the Research

The questions of this research study are:

Primary question:

Is Collaboration the best form of Innovation for a firm?

Secondary question:

What are the alternatives to collaboration?

Why would a firm choose Collaboration over other methods for Innovation?

1.6 Methodology Useed

This research study will make the usage of the qualitative research so as to analyses the research topic where primary data will be collected by the means of case study analysis which will be linked with the airline's alliance and secondary data will be collected through academic journals, articles, and books. This study will make the usage of the inductive approaches which will review the theories to achieve the required results.

1.7 Structure of the Research

This research study will possess six chapters which will help the researchers so as to attain the required aim and objectives of the research study. The first chapter of the research study is termed as ‘Introduction’ which will possess the overview of the research study and will also have a background of the research, rationale of the research, structure and also aim, objective and question of the research. The second chapter of the research study will be ‘Literature Review’ where secondary data is utilized so as to review the research topics in depth. ‘Research methodology’ will be the third chapter of the research study which will possess research strategy, research philosophy, data collection methods, research methods, ethical consideration, etc. in order to attain desired solutions. ‘Finding’ part will be the fourth chapter which will make the usage of primary data to collect the relevant information. The discussion will be the fifth chapter which wills analyse the data collected from both primary and secondary sources. The final chapter will be the concluding chapter which will sum-up each of the studies and will give an overall review of the chapter for future research.

Chapter 2: Literature Review

2.1. Introduction

This chapter presents a review of the literature on collaboration and innovation. For the review purpose, a wide range of literature is evaluated and discussed. At the onset, this chapter presents the discussion of the collaborations and outlines the definitions of collaborations proposed by different scholars. Thereafter, this chapter presents the discussion of the motives of the collaborative arrangement using various theories and models that have been applied by the previous scholars. Next, this chapter provides a review of the literature discussing the collaborations and innovation and critically evaluates the role of collaboration in achieving innovation by the firms pursuing collaborative arrangements. Finally, a summary of the literature review and the gaps in the existing literature are identified that this study attempts to abridge and address.

2.2. Collaboration

According to Faulkner (2003), it has been claimed that over the last few decades there has been a rapid increase in the collaborative form of doing business globally. In the similar context, Singh & Power (2009) argued that the collaborations of the firm have emerged as an intriguing subject matter among the researchers across the world owing to the several benefits that a firm can avail from the collaborative arrangement. It is argued that the increasing numbers of the firms of different sizes and nationalities across different industries and countries have developed a positive view of the collaborative arrangement. Scholars such as Lundan & Hagedoorn (2001); Morris & Hergert (1987) contended that the formation of collaborative arrangement in the international business environment has had accelerated since the 1970s. Clearly, collaboration in the business domain is not a new concept and has been around for quite some time. At the same time, numbers of scholars in the past have attempted to define the concept of collaboration. In broad terms, the collaborative arrangement is identified to relate to the linkage between the entities to jointly pursue common goals. In the similar context, Togar & Sridharan (2002) stated that collaborative arrangement involves two or more entities working together with the objective to generate competitive advantage by sharing information as well as making joint decisions and sharing benefits arising from the jointly operating the business. The similar definition has also been postulated by Foster & Sanjay (2005). In this regard, Foster & Sanjay (2005, p. 31) defined collaboration as “diverse entities working together, sharing processes, technologies, and data to maximize value for the whole group and the customers they serve”. In the words of Daugherty et al. (2006) collaboration is related with sharing of information as well as formulating strategic plans jointly and synchronizing business operations to take advantage of vertical integration without acquiring another firm.

Clearly, these definitions of collaboration are broad but it can be argued that there are other similar terms such as cooperation and coordination, which make it difficult to draw a clear distinction between these terms. In this regard, Spekman et al. (1998) attempted to provide some clarification regarding these concepts. It has been argued that cooperation essentially relates to the exchange of basic information among the business partners. On the other hand, coordination is argued to be higher level than the cooperation that deals with a continuous flow of important information. In contrast, collaboration is recognized to be higher level than the cooperation and coordination that involves a high level of trust, commitment as well as information sharing than the previous two concepts. Given the definition of the collaborations, different forms of collaborations are identified that include joint venture, strategic alliance, partnership, franchises, license, outsourcing, contractual relationships and cooperative agreements (Todeva & Knoke, 2005; Golicic et al., 2003). According to Vyas et al. (1995) collaborations in the form of strategic alliances and joint venture not only involves information sharing rather these types of collaborations also include sharing of knowledge and resources. One of the important purposes of collaboration is related to risk sharing. At the same time, Singh & Power (2009) argued that whichever forms of collaboration are adopted it usually involves the ‘inter-firm organizational relationship. Nonetheless, Barratt (2004) argued that collaborative arrangement has the tendency to yield several benefits to the firms involved in such arrangements but at the same time it is contended that the concept of collaboration is to an extent is problematic particular due to the difficulties associated with the implementation of collaborative arrangement (Kwon & Suh, 2004; Handfield et al., 2000). In this regard, one of the major challenges that firms face with respect to the collaborative arrangement is related with the exact form of collaboration that they can adopt for attaining the benefits arising from collaboration (Rudberg & Olhager, 2003). In addition, Barkema et al. (1997) argued that there are difficulties in international collaboration because of the cross-country differences such as differences in culture, and languages, which have the potential to create friction and increase the coordination costs while generating constraints for knowledge transfer. At the same time differences in the organizational culture of the partnering firms, which is usually reflected in terms of differences in the management style and organizational structure is also argued to serve as constraints for organizational learning (Park & Ungson, 1997; Parkhe, 1991). The subsequent section below provides a discussion of the motives behind the increasing use of international collaborative arrangement.

2.3. The Motive for Collaborative Arrangement

According to Mowery et al. (1996), collaborations such as strategic alliance and joint venture are not new phenomenon rather they have been an important element of the international business. Nonetheless, Adobor (2006) argued that in the past decades, there has been explosive growth in the collaborations of the firms across the world. Accordingly, it has been claimed that collaborations of the firms have been increasing rapidly in the form of both international and domestic alliance. The growing trend of collaborations globally is argued to be driven by the need to reduce operational costs, reduce risks and promote innovations (Mowery, 1996). Notwithstanding, over the years bulk of studies, have been conducted explaining the motives for collaborations for the firms in the international context. Daniels (1992) in his book has offered a comprehensive explanation of motives for collaboration. In this regard, the author argued that one of the major reasons behind pursuing collaborative arrangement in the international context is associated with the objectives of the firm to avoid or counter competition. Accordingly, it has been observed that not all markets are too large to accommodate the large numbers of competitors. In such markets, it becomes difficult for the firms to operate profitably and sustain competitive advantage. In such circumstances, the firms may decide to come together and combine their resources in order to compete effectively. Another important factor that is often attributed to the collaborative arrangement is ascertained to be related to the firm’s intention to secure vertical as well as horizontal links. Notably, it has been argued that firms operating in domestic or international settings may lack potential competencies and resources to effectively manage their supply chain. In such circumstances, the firms may decide to collaborate to ensure effective management of the supply chain activities and pooling together their resources and expertise. At the same time, the acquisition of knowledge is ascertained to be yet other important factors of the motivation behind the collaboration. In this regard, it has been argued that firms that have the capacity to promote innovations are more likely to form collaborations in order to learn the skills and technologies of the partnering firm. Daniels (1992) further argued that there are several other international motives for pursuing collaborative arrangement. Notably, the author argued that international firm often faces significant constraints and challenges while operating in the foreign market. Correspondingly, in order to reduce government constraints and to acquire a better understanding of the customers in the foreign market, international firms often form collaborations like strategic alliance and joint venture. In the similar context, the author also argued that in order to protect intellectual property as well as to minimize the risks of operating in the foreign market tends to pursue a collaborative arrangement with the local partners in the foreign locations. In addition, Tsang (1998) argued that scholars in the past have applied a variety of theories to explain the motives of collaborations. In this regard, market power theory, transaction cost theory, resource-based theory, and organizational learning theories are recognized as some of the important theories that have been widely applied to explain the motives of the collaborations. As per the resource-based theory, it is stated that the firm’s decision to pursue collaborative arrangement is firmly related with its need to access resources that are not available within the firm in order to create value for the firm and its customers (Das & Teng, 2001). Similarly, the market power theory argues that the current business environment is highly competitive in nature and it is difficult for them to sustain a competitive position in the market. Correspondingly, it has been stated that the collaborative arrangement offers collaborating firms with mutually advantageous opportunities in which both the companies can combine their resources to maintain strong market position, which can help them to attain greater competitive advantages over their rivals in the market (Child et al., 2005). At the same time, it has been claimed that collaborations offer the collaborating firms to acquire market power quickly for the firms as well as minimize the market share of the competitors. Transaction cost theory is yet another theory that is often used in the context of international collaborations. In this regard, it has been argued that firms often engage in forming collaborative arrangement in order to reduce transaction costs as well as production costs. Even though it has been argued that more vulnerable organization is likely to gain the greater advantage of collaborations but in long run, both collaborating partners avail significant benefit in the form of cost reduction (Barringer & Harrison, 2000). Resource dependency theory suggests that firms, in order to survive and succeed, need to acquire resources from external sources. Correspondingly, it has been argued that firms enter into the collaborative arrangement because it facilitates in sharing costs, expand in a new market, and increase market power (Mitchell & Singh, 2005). Likewise, the organisation learning theory states that the firms pursue collaborative arrangement as it enables the firms to develop core competencies, provide access to skilled people and contributes in knowledge sharing, which are essential requirements for promoting innovation and attaining greater competitive advantage in the current highly dynamic and fiercely competitive business environment (Hamel, 1991).

2.4. Collaborative arrangement impact on promoting Innovation

Several scholars in the past have argued that collaboration plays an important role in innovation. Accordingly, scholars such as Cassiman & Veugelers (2006) argued that collaborations with the partners are important for achieving innovation as it offers firms with access to external resources as well as serve as important resources for new product development. In addition scholars such as Porter & Stern (2001) argued that innovation does not result from a single economic agent rather it is an outcome of a complex process in which numbers of actors are involved and interact. The relationship developed through collaboration is argued to offer firms with relational resources that enable them to leverage as well as exploit other types of resources for achieving better innovation performance (Shane & Cable, 2002). In a similar context, MacCormack et al. (2017) argued that management of innovation is rapidly changing. Accordingly, it has been argued that innovation is no longer creation of large R&D department of the vertically integrated firms rather it has been claimed that innovation today is achieved through collaborations and network of firms that are engaged in operating their business in a coordinated manner. As per Sundbo & Gallouj (2000) in the current highly dynamic business environment the locus of innovation is shifting progressively from individual firm to network of inter form collaboration. In the words of Torugsa et al. (2016), it has been argued that knowledge serves as the basis of innovation, it is therefore important for the firms to foster collaborative arrangement. In other words, it has been argued that firms in the current context need to positively contribute to knowledge creation essential for achieving innovation. Correspondingly, collaborations argued to facilitate knowledge sharing and knowledge transfer, which in turn is claimed to facilitate innovation. Likewise, Nickerson & Zenger (2004) argued that innovation is a complex process, which requires more integration and synthesis of wide-ranging knowledge as well as capabilities. Accordingly, it has been suggested that collaborations facilitate joint problem solving and contributes to knowledge transfer, which is critical for developing capabilities essential for achieving innovation quickly and effectively. In addition, Dougherty (1992) stated that collaborations with partners offer to learn opportunities by creating a conducive environment for interaction and knowledge sharing. Similar view has also been proposed by Bailetti & Callahan (1993). In this context, the authors argued that organizational learning is an important driver of innovation. Correspondingly, collaborations with partners are argued to allow managers in organizations to seek increased organizational learning, which has a considerable impact on achieving innovation quickly. As per Hsieh et al. (2018) it has been argued that firms in the current context can collaborate with different partners such as customers, suppliers, and competitors among others. In this regard, Nieto & Santamaria (2007) argued that collaboration with suppliers is closely related to radical innovation rather than incremental innovation. Likewise, Amara & Landry (2005); Ganotakis & Love (2012) argued that collaboration with the customers has a considerable impact on their ability to achieve innovation. Notably, it has been claimed that strong collaboration with the customers facilitates the firms to identify new ideas which in turn is argued to enable the firms to engage in radical innovations. Moreover, it has been argued that collaboration with customers enables the firms to align their R&D efforts as well as enhance their competencies by enhancing creativity as well as the problem-solving ability of the firms (Menguc et al., 2014; Tsai, 2009). Bohlmann et al. (2013) further stated that such collaborations enhance the ability of the firm to respond to the changes within the market and the business environment and direct their R&D efforts towards the development of the new and innovative product. At the same time, it has been observed that firms can also collaborate with the competitor. In this regard, collaborations with the competitors allow the company to gain access to complementary knowledge as well as exploit the combined resources and expertise for promoting innovations to cater to the business needs more effectively. It has been further stated that an important aspect of collaboration in the context of innovations is that it facilitates in the commercialization of innovation which is claimed to be difficult to achieve in the house without the help of the collaborating partners (Duysters & Lokshin, 2011). Xu et al. (2013) argued that innovation is a complex process which requires additional knowledge but the collaboration is claimed to facilitate in sharing knowledge and information of the collaborating partner as well as they are able to access the partner's resources, which helps in accelerating innovation capability of the firms. Nonetheless, it has been observed that there are also certain challenges associated with the role of collaborations in promoting innovations. In this regard, knowledge and motives of the collaborating partners may differ, innovation whether radical or incremental requires different knowledge. Correspondingly, there still lack clarity about the type of knowledge required to achieve innovation (Slater et al., 2014); Tether, 2002). In addition, other scholars including Rosenbusch et al. (2011) Freel & Harrison (2006) argued that firms often face challenges in innovating independently, but at the same time, it has also been argued that collaboration neither is necessary nor it is sufficient to achieve innovation.

2.5. Summary and Gaps in Literature

The review of literature offered valuable insights and understanding about collaborations and innovations. It has been observed that the collaborations are not a new phenomenon rather it has been widely accepted practices in the international business among the firms across the world, In addition, the review of literature illustrated that there are wide-ranging motives behind pursuing collaborative arrangements. In this regard, intention to acquire knowledge, enhance market position, gain competitive advantage and reduce government constraints and combine resources to reduce transactional costs among others are identified as some of the key motives behind collaborations. At the same time, it has been observed from the review of literature that collaborations in domestic as well as the international context are an important source of achieving innovations. Notably, collaboration is identified to enhance the ability of the firms to promote innovations quickly and effectively. Nonetheless, gaps in the existing literature were also observed from the review of the literature. In this regard, it has been noted that even though there are bulk of studies on collaborations, not many studies in the past is ascertained to discuss the role of collaborations in promoting innovation in an in-depth and detailed manner. Hence, the knowledge and understanding of the role of collaborations are observed to be limited. Thus in order to eliminate this gap in the literature, this study attempts to answer whether collaboration the best form of innovation for a firm.

Chapter 3: Research Methodology

3.1. Chapter Introduction

The different research problems require different processes and procedures to address the identified research problem efficiently and accurately. The research methodologies thus involve the procedures that the researcher follows in a research study to address the research problem and answer the research question (Kothari, 2004). However, it can be argued that the selection of the most appropriate research methodology relies on the researcher’s disposition. Hence, the researchers need to demonstrate a high level of understanding about the different types of research methods, designs, and strategies and select the most satiable combination of research methodology to draw accurate and reliable study findings. Correspondingly, the subsequent section presents the explanation and justification of the set of research methodologies that have been considered in this research study.

3.2. Research Philosophy

There are numbers of factors which influences the selection of research methodology and knowledge creation while conducting a research study. In this regard, research philosophy is an important component of a research study that has a considerable impact on the choice of research method, data collection, and data analysis. Notably, research philosophy involves the researcher’s thoughts and assumptions towards the subject being investigated in the research study (Saunders et al., 2009). It is important to define the thoughts and assumptions before making a selection of the research methodology as the selection of research methodology is influenced greatly by the researcher’s thoughts and assumptions. There are three broad kinds of research philosophies namely positivism research philosophy, interpretivism research philosophy, and pragmatism research philosophy. The positivist research involves the scientific inquiry of the research issue (Aliyu et al., 2014). However, the positivist research philosophy is rigid and less flexible which makes it difficult for the researcher to draw findings more effectively. On the other hand, the underlying principle of pragmatism research philosophy is that there is no single most appropriate research philosophy rather the choice of suitable research philosophy is based on the nature of the research problem. Nevertheless, this type of research philosophy offers increased flexibility and freedom to the researcher which increases the chances of bias findings. It is, therefore, this study can be argued to follow interpretivism research philosophy. Accordingly, the interpretivist research philosophy is a non-positivist philosophy that allows the researchers to view the research problem from a broad perspective (Collis & Hussey, 2009). Moreover, the use of this philosophy allows researchers to develop a rich understanding of the research problem and answer the research question in a non-rigid manner.

3.3. Research Method

There are two main categories of research methods including quantitative and qualitative research method. Both quantitative and qualitative methods are the two commonly applied research method by the research communities while conducting a study. In order to select the most appropriate research method, it is ideal to acquire a basic understanding of these two methods (Creswell, 2013). Accordingly, the quantitative research method deals with the systematic investigation of the research method. The data collected in quantitative research are numerical data and are generally collected using questionnaire and experiment. In order to conduct quantitative research, it is important for the researcher to have substantial knowledge about descriptive statistics and inferential statistics such as correlations, regression and standard deviations (Creswell, 2013). Even though the findings obtained from quantitative research are highly generalizable but is also too complex to manage by the researcher. Hence, this study can be argued to follow qualitative research method. The qualitative research method involves the use of non-numerical data and these data are usually collected using interview and observation method. On the other hand, the qualitative method is considered suitable for research that aims to acquire a detailed understanding of the complex phenomenon of the research problem (Johnson & Christensen, 2008). Since the purpose of this study is to develop a comprehensive understanding about the impact of collaboration on the firm’s ability to innovate rather than obtaining highly generalizable finding, the qualitative research method is considered to be an ideal choice for the study.

3.4. Research Design

Research design is a framework that allows the researchers to combine the different components of the research study to answer the research questions. The selection of the research designs relies on the purpose of the research study. Notably grounded on the purpose of the study three board categories of research designs are identified that include exploratory research design, explanatory/causal research design, and descriptive research design. The exploratory research design is applied in a research study for which there lacks substantial literature. In other words, this research design is applied to investigate novel research problem in order to discover the new theory and to determine areas for future research. In addition, explanatory research design also known as a causal research design is considered suitable for research that involves formulation and testing of hypotheses. It basically relates to establishing a cause-effect relationship (Ghauri & Gronhaug, 2002). On the other hand, descriptive research design allows researchers to describe the research problem in detailed and draw conclusive findings. In addition, the use of descriptive research design also reduces the possibility of any data manipulation. It is therefore based on the explanation of the three types of research design; descriptive research design has been considered for this study. Accordingly, the application of this research design is anticipated to help the researcher to describe in detail about the collaboration impact on the firm’s ability to innovate and construct conclusive findings to add to the existing knowledge base in this field of study (Gay & Diehl, 1992).

3.5. Research Strategy

It is important to define the way the researchers intend to answer the research question. Thus, the research strategy offers a variety of options that the researchers can use to answer the research questions such as survey, experiment, observation, case study, and action research. Accordingly, this study involves the use of a descriptive case study as a research strategy to answer the research questions. The case study method has been considered for this research study because this method is flexible and is recognized to be suitable for obtaining specific information (Yin, 2009). Accordingly, a single case study of ‘Oneworld Airline Alliance’ has been used to determine whether collaboration is the best form of Innovation for a firm. Accordingly, Oneworld is an airline alliance that was founded in 1999 and has its headquartered in New York, United States. It has a total of 13 members that include American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, Latam, Malaysia Airlines, Qantas, Qatar Airways, Royal Jordanian, S7 Airlines and SriLankan Airlines (OneWorld, 2019). The case study of Oneworld Airline Alliance has been applied in order to investigate how the member companies have benefitted in terms of their innovation ability through collaboration with other member companies.

3.6. Data Collection

Data Collection is an important function in a research study. Accordingly, it is important to collect suitable data for answering the research question. Notably, poor quality data can be argued to have a negative impact on the validity of the research findings. There are two important types of data collection including secondary and primary data collection method (Hox & Boeije, 2005). This research study involves the use of both secondary and primary data collection; The secondary data are collected from the official website of OneWorld and its member companies and through other reliable documents and reports. In a similar context, primary data are collected using a semi-structured interview with the executive level managers in the member companies of OneWorld. Notably, the questions for the semi-structured interview will be framed based on the knowledge gained from the review of the literature. In addition, the semi-structured interview has been conducted over the internet using Skype (Bryman, 2012). The use of Skype for collecting primary data is further claimed to be a cost-effective method of collecting data relevant to the research (Bryman & Bell, 2015). Moreover, sufficient background research has been conducted about the interview participants before the actual interview was organized. All the interview participants were allotted ample time to provide their opinions and responses. Each participant to the interview will be contacted through professional Websites like LinkedIn and then they were communicated with the objectives of the study to inform them about the purpose of the study and to motivate them to participate in the interview process. All the responses obtained from the semi-structured interview were audio recorded after permission to conduct the interview was obtained from the interview participants.

3.7. Sampling

In order to conduct the semi-structured interview, 13 executives from 13 member companies from OneWorld Airlines Alliance were randomly selected using a non-probability sampling method. In addition, purposive sampling was used to selecting the desired sample participants for the study. Accordingly, purposive sampling relates to the selection of personnel based on the researcher’s judgment. Notably, only those participants were considered for the study who is currently working in the member airline companies of OneWorld. Moreover, purposive sampling was conducted as it allows researchers to target and recruit desired sample participants and collect data specific to the study problem. The data and onion collected from the semi-structured interview were then used for writing up the case study of OneWorld Airlines Alliance.

3.8. Data Analysis

Data analysis is the most important phase of a research study because the credibility and validity of research rely to a great extent on how effectively the collected data are analyzed and interpreted (Flick, 2009). In this research study, the primary data collected from the participants are analyses using qualitative thematic analysis tool. According to Bryman (2012) qualitative thematic analysis is one of the most satiable qualitative analysis tools.

3.9. Ethical Consideration and Limitations

3.9.1. Ethical Consideration

Within the domain of academic research, the concept of ethical consideration has gained immense importance. It has now become vital for the researcher to place adequate attention to preserving the principles of research ethics. Correspondingly, in the research study, substantial efforts were also laid on the maintaining high level of ethical consideration throughout the research process (Sobočan, Bertotti & Strom-Gottfried, 2018). During all the phases of the research study, the attempts were laid to preserve research ethics. In this regard, it was ensured that all the respondents included in the study are conveyed with the aim and objectives of the study. Moreover, the informed consent from each participant was also obtained and voluntary participation of the respondents was sought for conducting a semi-structured interview. Moreover, the principle of non- maleficence was strongly adhered to prevent any possible harm to the participants (Haahr et al., 2014). In addition, significant efforts were also attached to ensuring the privacy of the respondents. In this regard anonymity of the respondent’s identity was maintained throughout the study. In addition, the confidentiality of the data collected was also ensured. Accordingly, all the primary data collected were stored safely and its access was limited to the researcher only. Finally, all secondary data were acknowledged as per the generally accepted guidelines.

3.9.2. Limitations

The chosen research methodology also has certain limitations. In this regard, the conducting semi-structured interview overview Skype restricted the recording of feelings and body gesture of the participants. In addition, when conducting the interview over Skype, the internet connection was aborted a few times which increase the interview duration with the participants.

3.10. Summary

To summarize, this research study is based on interpretivism philosophy and follows a qualitative research method. The study further involves the use of descriptive research design and uses the case study method to answer the research questions. Accordingly, the case study of OneWorld Airlines Alliance has been applied to determine whether collaboration is the best form of Innovation for a Firm Moreover, the study involves the use of both secondary data and the primary data. The primary data were collected using a semi-structured interview with 13 executive level managers working the 13 member companies of OneWorld Airlines alliance. The collected data were then analyzed using qualitative thematic analysis tools. Moreover, significant attention has also been laid on preserving and maintaining the principles of research ethics such as privacy, confidentiality and non- maleficence throughput the research process.

Chapter 4: Findings

This chapter presents the findings obtained from the analysis of the primary data obtained from the semi-structured interview conducted with executives from 13 member companies from OneWorld Airlines Alliance. In addition, thematic analysis tool has been applied to analyze and interpret the study findings. Moreover, this chapter is divided into three broad themes for the interpretation of the findings which has been determined based on the research questions formulated in chapter one. The first theme that has emerged from the analysis of the interview transcripts includes benefits of collaborative arrangement for member companies of OneWorld Airlines Alliance. The second theme includes common challenges of collaborative arrangement for member companies of OneWorld Airlines Alliance. The third theme considered for the interpretation of the finding is the collaboration the best form of innovation for a firm. At the same time, the interpretation of the finding is further supported by the interview excerpt extracted from the interview procedure. In order to maintain the anonymity of the interview participants, pseudonyms such as interviewee A, interviewee B, interviewee C, interviewee D and so on have been applied.

4.1. Benefits of collaborative arrangement for member companies of OneWorld Airlines Alliance

The analysis of the interview transcripts yielded valuable insights and understanding about the importance and benefits of collaborative arrangement for a firm in the current highly competitive and dynamic business environment. In this regard, when the interview participants were asked whether the collaborative arrangement is an ideal choice for firms operating in an international context, all the participants agreed it is important for their firm. Notably, they argued that currently the firms operating in the international context are faced with stiff competition and the business environment is also changing rapidly which is characterized by rapid changes in the needs and preferences of the customers. The available resources within a firm are largely insufficient to effectively address the changing needs of the customers or attain business excellence. In such circumstances, collaborations allow the international firms to bring together their resources, and capabilities to jointly cater to the needs of the customers and survive their business profitably. For example, interviewee C stated that: “the present business scenario is dynamic and is undergoing rapid changes…these changes have offered opportunities for the firms as well as created challenges. In both the circumstances, availability of adequate resources and capabilities are essential. However, it would be unfair to state that a firm possesses all required resources and capabilities and those who claim so are just exaggerating. Hence, collaborations allow the firms to complement each other bringing together their resources and capabilities. The review of literature also demonstrated similar findings. In this regard, scholars such as Togar & Sridharan (2002); Nickerson & Zenger (2004) have also illustrated similar findings. The authors in their study have acknowledged that collaborations offer firms with an effective mechanism that facilitate in knowledge sharing and cooperation on various critical matters like product/service innovation and help the firms to remain competitive while earning a substantial profit. The analysis of the interview data further offered to understand the motives and forces behind the rapid rise in the collaborative arrangements among the firms in the aviation industry. In this context, it has been ascertained that various factors and forces have provided the impetus for the rapid rise in the collaborative arrangement for the firms in the aviation sector. Accordingly, the major factors that the majority of the participants acknowledged to have resulted in the collaborative arrangement are associated with the growing the need for the international firms to reduce operational cost, reduce risks posed by uncertain international environment and need to promote innovation to adjust to the changes occurring in the international business and market. For example, interviewee H stated that: “Collaborations have become a new trend for the firms globally. Today, firms are increasingly involved in forming a strategic alliance, joint venture and develop informal collaborative arrangement. The key reason behind such a trend is probably because of the changing dynamics of the international business and the growing need to cut operational cost.” Likewise, interviewee D noted that: “There is a greater need for the firms in the current scenario to continuously innovate to provide customers with enhances and new experience and to remain competitive and I believe collaborations among the firms offer suitable platform for them to combine their resources, skills, and expertise to innovate and develop new innovative product and services”. Notwithstanding, these findings also relate to the findings obtained in the previous studies. Accordingly, scholars such as Mowery (1996); Daniels (1992); Barringer & Harrison (2000) reported that the collaborations among the firms are not a new phenomenon, particularly in the international business context. They argued that the key reason behind the increasing use of collaborative arrangement is largely associated with the firm’s willingness to minimize the operational costs as well as reduce their exposure to risks while operating in the alien market condition as well as to foster innovation. However, the literature review findings also illustrated that firms enter into a collaborative arrangement to expand in a new market, reduce government constraints and increase market power (Mitchell & Singh, 2005; Child et al., 2005). Nonetheless, none of the interview participants stress on factors like achieving market power or a strategy to reduce government constraints. It is, therefore, further research is required to be conducted in this area for determining the relationship between the collaborative arrangement and factors like market power and government constraints. When the interviewee participants were asked whether collaborations facilitate knowledge sharing and what role does the knowledge sharing plays in achieving innovation. Responding to this question almost all the participants offered similar opinions. In this regard, they argued that one of the most important reasons behind the collaborations among the firms in the international context is associated with knowledge sharing. Notably, it has been analyzed that operating in a new foreign market is challenging for the firms because it often lacks adequate knowledge and information about the host market condition. However, when the firms collaborate with the local partners or those having substantial experience of operating in the particular foreign market, it enables the firm to take advantage of the knowledge of the partnering firms and devise strategies accordingly to exploit the opportunities in the foreign market more efficiently. Moreover, it has been analyzed that that knowledge sharing is a key to innovation, which enables the firms to synthesize knowledge and capabilities and use it for achieving innovation. For example, interviewee L stated that: “Collaboration definitely leads to knowledge sharing which further assists firms to knowledge gained from the partnering firm to improve their ability to innovate.” Accordingly, it is worth mentioning that similar findings have also been obtained from the review of the literature. Notably, of Torugsa et al. (2016); Nickerson & Zenger (2004) claimed that knowledge sharing is an integral element of collaborations and serve as a basis of innovation. In addition, it has been claimed that knowledge sharing between the partnering firms helps them to address problems faced by them more effectively. In addition, firms can leverage the knowledge acquired from the partnering firms along with their capabilities to achieve innovation.

The interview participants were also asked whether collaborations influence the organizational learning which is considered an important aspect for achieving innovation in an organization. Correspondingly, responding to this question, the interview participants strongly affirmed that collaborative arrangement between the firms such as OneWorld Airlines Alliance has a considerable impact on the organizational learning of the member firms. Accordingly, it has been analyzed that the collaborative knowledge sharing among the member firms enhances organizational learning. Notably, the interviews reported that collaborations facilitates in sharing ideas, increases communication and information flow while it also contributes to the transfer of knowledge which has a huge impact on organizational learning. For example, interviewee J stated that: “No doubt...collaborations have a considerable impact on organizational learning. I have personally realized that collaborations among other firms in the industry [aviation] have increased communication, information sharing and transfer of knowledge which have greatly enhanced organizational learning.” Nonetheless, it can be argued that scholars in the past have also established a positive relationship between collaboration and organizational learning. Accordingly, Dougherty (1992); Bailetti & Callahan (1993) claimed that collaborations create a conducive environment of organizational learning. In addition, it has been argued managers of a firm can interact, and share their experiences and relevant information with their peers in the partnering firms and help them develop new insights and understanding essential for achieving innovation.

4.2. Common challenges of collaborative arrangement for member companies of OneWorld Airlines Alliance

The analysis of the interview transcripts indicated numerous benefits of collaborations for member companies of OneWorld Airlines Alliance. Nonetheless, an in-depth analysis of the interview transcripts also illustrated that even though there are benefits of collaboration in the international context is numerous but there are challenges and problems as well. In this regard, the analysis of the interview transcripts illustrated that international collaborations are different from domestic collaborations. Notably, in international collaborations, the firms are exposed to a number of challenges which has the tendency to negatively influence the realization of the benefits arising from international collaborations. Correspondingly, cross-culture differences in terms of language and management style are ascertained as the two main obstacles and challenges that serve as a potential threat that reduces the ability of the member firms to grasp the collaboration opportunity. For example, the interviewee B state: “Initially our firm faced huge challenges in establishing communication and making quick decisions owing to the cross-culture differences. We have different management styles while partnering firms followed different management style, which reduces the speed of decision making and also prevented knowledge sharing at the initial phase.” It is worth mentioning that the previous studies have also illustrated similar challenges and difficulties related to international collaborations. Correspondingly, scholars such as Park & Ungson, (1997); Parkhe (1991) stated that differences in organizational culture, organizational structure, and the management practices have a huge impact on the ability of the firm to exploit the opportunities offered by collaborations. Accordingly, they also argued that such differences and challenges may further act as an obstacle for achieving innovation quickly rather it may reduce cooperation among the member firms and reduce trust among the member firms. When the interview participants were asked how they overcame these challenges, the participants reported that they focussed on identifying areas of mutual gain and continuously search for an area of benefits to all member firms. Furthermore, it has also been analyzed that negotiation plays an important role in eliminating challenges and promoting greater cooperation and collaboration among the member's firms. For example, the interviewee F stated that: it was not easy to overcome the challenges and difficulties but all member firms establish the common goal of exploring new business opportunities and discussed the ways to improve the experience of travelers while identifying solutions to the common problem faced by the member firms. All these measures greatly assisted in seeking greater cooperation and collaborations.

4.3. Collaboration the best form of innovation for a firm

When the respondents were asked to describe the international aviation sector in terms of innovation, the interview participants offered interesting responses. In this regard, it has been noted that the international aviation sector is becoming highly competitive in nature and in such circumstances organizations within the industry are constantly faced with the challenges to develop a greater competitive advantage over their rivals which has created a greater requirement for the organizations in the aviation sector to engage in innovation. In a similar context, it has also been noted that customer satisfaction plays an important role in the travel and aviation industry. It is crucial for organizations to foster continuous innovation for providing passengers with increased customer satisfaction, which is essential for the survival and success of the organizations in the aviation industry. For example, interviewee D stated that: Nowadays, the level of competition is very high and the customer expectations are also increasing. For us to survive and compete effectively delivering unique customer experience has become an essential criterion. It is where I feel that engaging in continuous innovation has become necessary unlike in the past where it was viewed only as an option for the firms in the aviation sector. When the interview participants were asked about the importance of collaboration for the firms with other partners in Oneworld Airline Alliance, they provided different opinions. Accordingly, the analysis of the interview transcript demonstrated that collaboration of the firm with other partners is important due to number of reasons, Notably, it has been ascertained that collaboration facilitate in sharing knowledge and insight with their partners which greatly helps to better understand the customer needs and requirements and leverage the shared knowledge for developing new services that deliver rich customer experience as well as maximize the value of merchandise. Accordingly, collaboration is ascertained to help the partnering firms to leverage the strengths of the partners and use the strength and resources of the partnering firms to innovate quickly. In this regard, the interviewee G stated that: For a firm is always challenging to compete in current competitive business. Expectations of the customers have also been growing. In such scenario…I believe collaboration offers a huge opportunity for us and our partners to share knowledge and expertise as well as use that knowledge for innovation so as to deliver rich customer experience and remain competitive. Similar views have also been presented by scholars such as Hsieh et al. (2018); Amara & Landry (2005); Ganotakis & Love (2012). Accordingly, these scholars also stressed that collaboration is key for the organization operating in the airline industry, which allows the partnering firm to access the knowledge and experience of other partners and leverage their knowledge for innovation purpose. In addition, the authors argued that collaboration reduces R&D costs and helps combine the experience, resources, and skills to foster innovation. When the respondents were asked to describe the relationship of their firm’s with the partnering firms within Oneworld Airline Alliance’ in general and how this relationship has influenced their ability to innovate, the interview participants offered similar views. It has been analyzed that the firms within the airline alliance have developed mutual respect for the partnering firms and are committed to taking this alliance to new heights. It has been observed that the collaboration among the partner firms have facilitated in developing a strong relationship among them and has also developed trust among them. Such development due to collaboration has accelerated information sharing and has also contributed to organizational learning which altogether has promoted innovation for improving customer experience. For example interviewee A stated that: definitely, we share a good relationship with our partners in Oneworld Airline Alliance. Personally speaking…it has generated trust among the prayers which I believe is a critical element of collaborative arrange. However, the major differences that I have observed in relation to the collaboration of organization in Oneworld Airline Alliance’ is that we share our knowledge which has increased organizational learning which has greatly helped such as utilize those learning for innovation and ensure that continuous innovation.

This finding can be argued to correlate with the previous findings in which Bailetti & Callahan (1993); Dougherty (1992) stated that collaboration is a major requirement that offers partnering firms to acquire learning opportunity and resources at minimal costs. When the respondents were asked whether collaborations have any faster and better innovations to market, it has been observed from the analysis that collaboration has no negative impact in the current context rather it has been found that collaborations enhance the speed of innovation by combining expertise and experiences of the partner firms and develop new process and services for ensuring increased customer satisfaction. At the same time, the analysis of the interview transcripts demonstrated that new technologies are constantly emerging in the aviation industry and thus for faster innovation collaboration is ascertained to play an important role. For example, Interviewee C stated that: collaboration is the need of the hour for us and our partners. We as partners not only motivated in earning profits but are dedicated to foster innovations as well for delivering enhanced customers experience. A similar opinion has also been offered by interviewee D who stated that: I personally feel that collaboration presents the most ideal environment for the originations like ours and our partners firm. It allows firms like ours to engage in faster and better innovation. Similar findings have also been suggested by Nickerson & Zenger (2004) who argued even though innovation is a complex process it positively contributes to the creation of knowledge. The combined efforts of the partners and the firms are claimed. When the interview participants were asked about the future of collaborations in promoting innovation in on, they reported that collaborations are not a new concept but has gained importance in recent years. Accordingly, it has been analyzing that collaboration trend is more likely to increase and remain in the future as an important platform for promoting innovation. At the same time, the analysis postulated that there is no other effective means than collaborations for achieving innovation quickly which has the capacity to change the landscape. In this regard, interview E stated that in my opinion collaboration offers the most suitable environment for engaging in innovations and reap the benefits arising therefrom. I believe that in future more companies will be forging collaborations and exchange ideas, knowledge and expertise for attaining innovation is going to become try.

Chapter 5: Discussion

5.1 Is collaboration the best form of Innovation for a firm?

It had been analyzed from the literature review that Collaboration is the diverse entities which work together, makes the sharing of the process and technologies and also data so as to maximize the whole group values and served customers. It is further stated that collaboration plays a major role in innovation and collaboration with partners are essential so as to achieve innovation. It is also argued that effective collaboration with partners is essential so as to attain innovation as it offers firms to make access to external resources and also serve the firms with newer product developments. A literature review has also identified that innovation doesn’t occur with the help of a single individual but takes place when there is a number of actors involved in the innovation process. Moreover, it had also been reviewed that innovation is not the creation of research and development department of the firms but it is claimed that innovation is attained by the means of collaborations which operates their business in coordinated ways. It is also seen that innovation focus is shifting from the individual firms towards the inter-firm collaboration. Collaboration is also seen to facilitate sharing and transfer of knowledge which is seen facilitating innovation. However, one of the other authors stated that organizational learning is an essential driver of innovation and collaboration with partners helps in allowing the managers to achieve enhanced organizational learning which has an impact on innovation. It had further been reviewed from the findings that most of the firms make the usage of the collaborative arrangement so as to minimize the operational costs and also make the reduction of the risks and also foster innovation. The findings also reveal that a lack of adequate knowledge and information might be challenging for the firms as it might lack the knowledge and information. However, the collaboration of firms with the other local partners helps in providing knowledge to the partnered firms and makes the usage of the different ideas to enhance innovation. Furthermore, it had also been analyzed from the interview findings that knowledge sharing is an innovation key which helps the firms to synthesize the knowledge and also utilize if so as to attain knowledge. Thus, after reviewing both findings and literature review, it can be stated that when an organization makes collaboration with the other organization that there are a sharing and transfer of the knowledge which could assist the organization so as to attain innovation. When there are no partnering firms than there is no sharing of data and no options to achieve innovation. Moreover, it is also argued that a firm’s manager could also interact and makes the share of the experience with the peers which helps the peers to make the development of newer insights and attain innovation. Thus, each of the organization in the present context prefers to make collaboration so as to attain innovation.

5.2 Choosing of collaboration over other methods for Innovation

It had been reviewed from the literature review that collaboration is an essential element in the international business and is applied increasingly in both domestic and international alliance. It is seen that most of the firms choose to collaborate globally rather than other means for innovation as it is highly beneficial and helps in reducing operational costs, makes the reduction of the risks and also promotes innovations. It is also being stated that since other methods don’t help the organization to sustain competitive advantage, the usage of collaboration helps the organizational firms to operate profitably and also attain competitive advantages. it had been observed that most of the market are very large so as to accommodate the competitors and become difficult to operate. Thus, the collaboration is taken into consideration so as to attain collaborative arrangement over other methods. Moreover, it is also analyzed that the firms who are operating in domestic and international settings might also lack the competencies to manage the supply chain effectively. It had also been analyzed that since collaboration provides motivation and have the capacity to promote innovation which might not be found in other methods and thus, international motives for the pursuing of the collaborative arrangement. It was evaluated from the literature review that most of the international firms make collaboration such as joint venture and strategic alliance so as to minimize the operating risks in foreign markets which might not be possible in other methods. Moreover, it is also evaluated that usage of collaborative arrangement is helpful so as to reduce the production and transaction costs and also helps in facilitating the costs and increasing the power of the market. Lastly, it had also been reviewed that collaborative arrangement also helps in developing the core competencies and assists in providing skilled people. On the other hand, it had been analyzed from the findings that there are higher benefits of using collaborative arrangement for firms and was termed as higher useful and essential. It was further stated that it is highly difficult for the organization so as to address the changing needs of the customers due to lack of resources. However, the lack of resources within the firms doesn’t let the human resources to address the change and thus, this is the reason that a collaborative approach is applied as it brings the resources together. Findings also reveal the facts that collaborative arrangement also assists in expanding in a new market and increase the power of the market. Thus, it can be stated from the findings and literature review achieved that collaboration is highly beneficial and is preferred by most of the organization. The sharing of knowledge is one of the major roles of collaboration and is used for the achieving of innovation. It is further evaluated that the is increase in sharing ideas, communication and also the flow of information due to collaboration which also have a higher impact on the organizational learnings. Moreover, the sharing of experience and relevant information could also be possible between the partners and also helps in attaining innovation.

5.3 Effects of collaboration in One World Airline Alliance in terms of innovation ability

It had been analyzed from the interview findings that collaborative arrangement has benefitted the member companies of the One World Airlines Alliances in the present competitive business environment. It was analyzed that a member country is benefited due to collaboration and are able to address the needs of the customers. In addition to that, it had been analyzed that collaboration has helped the business to survive in this business environment and attain profitability. The collaboration of the member company with One World Airline Alliance also stated that collaboration has helped the company to facilitate the sharing of knowledge and also remain competitive at the time of earning the profits. Furthermore, it is also analyzed from the findings that the application of collaborative arrangement in the aviation industry is risen up rapidly and have become highly competitive. The organization is found to attain the collaborative arrangement so as to reduce the operational costs, promote innovation and also make the reduction of the risks which is faced by the organization in the international environment. It was seen that collaboration has also cut the operational costs of the firms and have provided satisfaction to the customers. It was revealed from the findings that the member company, as well as One World Airlines, was not working effectively in their individual means. However, when both the company collaborated than there was a continuous improvement in the work culture. The collaborated firm was able to reduce the risks and associated operational costs. They have also expanded its business in a new market and have also reduced the constraints of the government. Moreover, there was also an effective sharing of knowledge between the two companies. However, it was also analyzed from the findings that collaborative arrangement had also brought up various challenges for the member companies of One World Airlines Alliance. The international collaborations tend to face challenges which have the tendency to negatively influence the benefits which arise from international collaborations. The cross-cultural differences in terms of language and the change in the management styles are the two major challenges which are faced by the members and the organization while collaborating with one another. This was further seen to reduce the speed of decision making and also prevent the organization from the sharing of the knowledge at the initial phases. The findings also revealed that organizational structure and management practices also have a greater impact on the firm’s opportunity which is offered by collaboration. Thus, it can be stated that collaboration acts as an obstacle in achieving innovation and might also reduce the cooperation with the of the member firms and further reduces trust in between the firm’s members. However, negotiation plays a major role in the elimination of the challenges which further promotes collaboration and cooperations among the firm’s members. Thus, it can be stated that collaboration has both positive and negative impact on the members of One World Airlines alliance but since positive impacts are higher than the negative ones so the collaborative arrangement is highly preferred by the organizations.

Chapter 6: Conclusion and Recommendation

6.1 Conclusion

The main aim of this study is to analyse how firm collaboration has effects on innovation. The case study analysis is taken into consideration as it provides a real picture of how firms make collaboration and bring innovation in the larger extends. The case study reveals that Collaboration is termed as diverse entities which work together and helps in sharing technologies to maximize the value of the companies associated with the main company. Moreover, collaboration is also the continuous flow of the information which assist in achieving innovative ideas and knowledge. Thus, it can be concluded that collaboration is highly essential for the organizations as it can help the companies to share their information and attain innovation. It is further analyzed from the case study of One World Airlines alliance that collaboration of the firms is enhanced across the world as the growing trends of collaboration so as to make the reduction of the operational costs, minimize the risks and also makes the promotion of innovation. It is concluded from the research study that collaboration acts as a contributor to innovation and also acts as a competitive advantage. Furthermore, collaboration was also chosen so as to learn the skills and technologies and acquire the knowledge which encourages the firms to collaborate in the case study. The protection of the intellectual property, as well as minimization of operational risks in foreign markets, was also some of the other reasons for making a collaboration with the local partners. This research study has applied numerous theory which states that the firm’s decisions so as to make the usage of the collaborative arrangement are associated with the needs which are not present in the firms so as to create value for the firms. Another theory stated that since the market environment is highly competitive so collaboration acts as a competitive advantage and help the firms to flourish. Moreover, collaboration is also found to offer market power for the firms and also minimize the share of the market. Other theories also state that firms also get engaged in the formation of the collaborative arrangement so as to reduce the cost of the transaction and also the production costs. It is also revealed that the organization needs to acquire resources from the external sources so as to attain success and survive in a competitive environment. It had been analyzed from the research study that at the initial stages, the organization had faced failure due to a number of issues associated with the organization. However, the organization had attained success when the organization has made collaboration with other firms. The collaboration has also shifted the focus of the companies towards innovation which was not thought when they were individual firms. It had been analyzed from the case study of airlines alliances that knowledge sharing was also promoted due to the collaborations which further helped the companies to get engaged in the business operation and achieve innovation. It was also analyzed from the case study that collaboration helps in solving the joint problems and also helps in the transfer of knowledge for attaining of the innovation quicker and effectively. Moreover, it was also analyzed that collaboration also have an impact on the customers which further have a considerable impact on the ability of the organization to attain innovation. Thus, it can be concluded from the research study that collaboration is highly effective which not only benefits the member companies and the collaborated companies but also helps the customers associated with the company. However, there are some of the challenges which are linked with collaboration such as cultural difference, the difference in language and also reduction in decision making. This is the reason that effective recommendation is provided to the organization so as to attain success due to collaboration.

6.2 Recommendation

It is recommended that One World Airline Alliance must assess the present planning state with that of customers and also with the internal willingness for the collaborative innovation. This could help the member companies to design the process and also accounts for planning and aligning the internal organization with the development processes. This measured approach might help the organization to implement newer practices and develop the organizational capability along with collaborative innovation. The One World Airlines Alliance is also recommended to train and support the member companies regarding the new process and also the development of the top-level support. This could help the organization to deal with any sorts of issues related to collaboration. Negotiating is also another means to manage the conflicts arisen from collaboration. The effective communication and keeping patients in the understanding of one another views is the best means to deal with the challenges associated due to collaborative innovation. The providing of the signals to the government so as to empower economy strategy in supporting collaborative innovation is highly essential along with providing of opportunities to the firm’s employees to enhance the management of innovation through effective education. The ensuring of the effective legal and regulatory frameworks also helps the organization to solve the issues of collaborative innovation. In addition to that, One World airlines alliance is recommended that they should give focus on the management of innovation from the initial stage of collaboration as most of the issues come across when the organization believes that it can be managed on the later stages. Furthermore, this airlines organization is also recommending to invest in the building collaborative capabilities so as to attain success. It is also essential for the organization to make some forms of explicit strategies for collaboration and make possible changes to enhance organizational performance. lastly, since it is well known that collaboration is an essential competitive advantage so firms should always develop and makes the exploitation of the newer ability so as to enhance the collaborative innovation and reduce the unwanted organizational expenses.

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