Fieldwide versus organization-specific crises in the global airline industry: The advantages of shared adversity

Abstract

This study explores the contrasting effects of organizational crises on operational performance by focusing on both organization-specific and fieldwide crises. Drawing on the social capital literature and empirical context of the global airline industry, it highlights the positive aspects of collective crises on organizational operational efficiency. Unlike organization-specific crises (serious accidents experienced by specific organizations), fieldwide crises (9/11 terrorist attacks) facilitate mutual support and coordinated responses to shared adversity, leading to a significant enhancement of operational efficiency of organizations in the field. Additionally, organizations can mitigate the negative performance consequences of organization-specific crises through alliance constellation membership, enabling the sharing of adversity within networks. Overall, by elucidating the contrasting effects of organizational crises depending on their scope, this study contributes to the crisis management literature and provides valuable insights into leveraging crises as strategic opportunities for organizational sustainability.