Abstract
The potential exists for airlines' confronting challenges when providing high quality service while simultaneously adopting corporate social responsibility (CSR) in a cost efficient manner. This study explores synergistic effects of CSR and service quality on firms' performance in the U.S. airline industry. In particular, the examination involves synergistic effects according to types of air-carriers: low-cost carriers (LCCs) and full-service carriers (FSCs). Findings reveal: 1) a positive synergistic effect of service quality and CSR for FSCs, and 2) a negative synergistic effect of service quality and CSR for LCCs. These findings suggest that although improving service quality is apparently crucial, the improvement does not always increase firm performance when integrated with CSR activities. This study provides important implications for airline firms, suggesting efforts toward development and implementation of a strategy that can optimize competitive advantages.
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