Causal Model of the Airline Business’s Agility in Thailand

Abstract

Background and Aims: The secret to Thailand's airline business's agility is its contribution to the industry's resilience and adaptability, which helps airlines react quickly to market shifts brought about by unanticipated disruptions, shifting regulations, and fluctuating demand. Airlines in Thailand can effectively navigate obstacles, seize new opportunities, and maintain long-term growth and profitability in a competitive and dynamic industry landscape by improving their agility. Thus, the objectives of this study aim to 1) study the causal factors between digital transformational leadership, E-HRM Practices, E-business proactiveness, innovation capabilities, and organizational agility. Methodology: It employed a quantitative design by distributing questionnaires and using quota random sampling to 400 executives and airline staff from six airlines in Thailand. Data was analysed by applying Structural Equation Modeling: SEM. Results: The findings showed that digital transformation leadership has a direct positive influence on innovation capabilities and organizational agility; E-HRM Practices have a direct positive influence on organizational agility; E-business proactiveness has a direct positive influence on innovation capabilities and organizational agility and innovation capabilities has a direct positive influence on organizational agility. Meanwhile, E-HRM Practices have no direct positive influence on innovation capabilities. Based on the findings, e-business proactiveness, and innovation capabilities are the most influential factors in organizational agility. Conclusion: This study recommends that airline management make an improvement in manpower training and streamline innovation capabilities in their organizations.