Drivers and Barriers in the Diversification of Airline Business Models in Turkey (1980-2020): An Institutional Logic Perspective

Abstract

The primary objective of this study is to explore the diversification of airline business models in Turkey in four decades and show the link between the reasons and logic behind the diversification from the institutional logic perspective. For this purpose, airline business models were examined, and critical events in the organizational field were explored based on secondary data. The case study research was conducted to explore the link between the diversifications of the business model and institutional logic. The unit of analysis in this study is multiple cases, and gathered data were examined with the content analysis method. The results show that multiple institutional logics (state and commercial logic) in the field can pave the way or prevent diversifying airline business models. Multiple logics shape the regulations and approaches of the state and other organizations in the field, and these changes may play a role as a barrier or driver for diversification. Each barrier and driver may affect each airline's business model differently. This study contributes to business models and institutional logics literature by providing evidence of the effect of the pattern of approaches of the actors on the airline business models and by showing the relations between these approaches and institutional logic.