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Identification of factors affecting competitive tension in the domestic air transport market in Turkey1 Cover

Identification of factors affecting competitive tension in the domestic air transport market in Turkey1

By:  and    
Open Access
|May 2020

Figures & Tables

Figure 1

Competitive interaction model.

Source: Chen and Miller, 2012, p. 71.

Figure 2

Interfirm rivalry model.

Source: Chen, 1996, p. 111.

Figure 3

Research model.

Table 1

Perceived competitive tension scale

Please tick the other airlines that you consider as rivals, according to the degree of rivalry, from the highest [5] to the lowest [1]. For airlines you do not consider as a rival, tick [0]
AirlinesI do not see as a rival [0]I consider it as the least important rival [1]I consider it as a less important rival [2]I consider it as a moderately important rival [3]I consider it as an important rival [4]I consider it as the most important rival [5]
A
B
C
Table 2

Variables of the study with their types and abbreviations

VariablesType of variableAbbreviation
Perceived competitive tensionDependentPCT
Market commonalityIndependentMC
Resource similarityIndependentRS
Market concentrationIndependentMCT
Competitive asymmetryIndependentCA
Table 3

Simulation of competitive asymmetry

FirmsMost important rival?
FocalRivalYesNoValue
Firm AFirm B1
Firm AFirm C0
Firm BFirm A0
Firm BFirm C1
Firm CFirm A1
Firm CFirm B0
Table 4

Codes given to airline firms

Codes used in descriptive statistics
AL1Airline 1
AL2Airline 2
AL3Airline 3
AL4Airline 4
AL5Airline 5
AL6Airline 6
AL7Airline 7
Table 5

Number of domestic passengers carried and airplanes of airlines

Number of domestic passengers [number of airplanes]
201220132014201520162017
AL1671,861460,730655,625828,892841,486Ceased***
[6][6][8][8][14][4]
AL23,691,1504,729,2924,723,7093,888,3923,435,2303,645,466
[15][16][18][20][25][24]
AL35,282,3116,272,0856,098,7016,265,7206,138,9544,817,484
[32][23][21][28][25][24]
AL410,229,79820,447,82823,938,73827,628,89830,578,31833,778,276
[40][49][55][65][78][73]
AL54,739,7174,162,8624,395,2275,178,9405,077,1305,391,148
[22][19][23][54][49][52]
AL69,086,57715,223,42717,206,69721,322,34422,951,37227,396,372
[18][27][26][30][29][33]
AL721,228,48924,837,18428,315,31326,300,43727,287,32529,874,443
[184][200][225][258][271][260]
Total**54,949,10376,146,91385,416,16697,041,210102,499,358109,511,390
[337][361][401][463][491][470]

Notes:

** There are three more airlines that had nonscheduled flights.

*** AL1 interrupted its flights in April 2017.

Source: GDSAA Statistical Annuals and DGCA Activity Reports (2012–2017).

Table 6

Demographic information about the participants

InsiderOutsider
Airline firmsAirline employeesDepartmentsNumber of participants
CodeNumber of participantsDepartmentsNumber of participants
AL19Cost control24Travel agency45
AL215Sales–marketing8
AL313Tariff planning3
AL411Revenue management4Airport2
AL55Station management6
Ground operation19Other airlines8
AL64Operation control4
Agreements management1News, Websites2
AL724Trade3
Ticket sales9
Table 7

Mean values, standard deviations, and correlations

VariablesMeanStandard deviations1234567
[1] MC0.0780.13210.781**0.878**0.798**0.722**0.629**0.705**
[2] RS0.0990.1610.781**10.788**0.515**0.494**0.487**0.548**
[3] MCT0.0280.0830.878**0.788**10.586**0.568**0.403**0.469**
[4] CA0.1700.3770.798**0.515**0.586**10.616**0.557**0.596**
[5] PCTin2.1471.1930.722**0.494**0.568**0.616**10.821**0.846**
[6] PCTout2.9980.8730.629**0.487**0.403**0.557**0.821**10.969**
[7] PCTtotal2.8560.8780.705**0.548**0.469**0.596**0.846**0.969**1

Notes:

** Correlation is significant at the 0.01 level (two-tailed).

MC, market commonality; RS, resource similarity; MCT, concentration ratio index; CA, competitive asymmetry; PCTin, internal competitive tension; PCTout, external competitive tension; PCTtotal, total competitive tension.

Table 8

Results of regression analysis on determinants of competitive tension

Models
Variables123
MC9.211**7.758**8.923***
RS−0.8720.9630.932
MCT−3.377−7.839**−8.248**
CA0.004−0.075−0.242
Observations424242
R20.540.500.61
Adjusted R20.490.450.56
Durbin–Watson2.0242.2081.710
Cronbach’s alpha0.831

Notes:

* Significant at the 0.05 level;

** significant at the 0.01 level;

*** significant at the 0.001 level.

Figures in the table show the unstandardized coefficients.

MC, market commonality; RS, resource similarity; MCT, concentration ratio index; CA, competitive asymmetry.

Dependent variable in Model 1: Internal Tension; Dependent variable in Model 2: External Tension; and Dependent variable in Model 3: Total Tension.

Table 9

Verification status of the hypotheses

Independent variableDependent variableHypothesesAcceptedRejected
Market commonalityPerceived competitive tensionHypothesis 1 [H1]
Resource similarityPerceived competitive tensionHypothesis 2 [H2]
Market concentrationPerceived competitive tensionHypothesis 3 [H3]
Competitive asymmetryPerceived competitive tensionHypothesis 4 [H4]
DOI: https://doi.org/10.2478/ijme-2020-0009 | Journal eISSN: 2543-5361 (formerly 2299-9701) | Journal ISSN: 2299-9701
Language: English
Page range: 118 - 139
Submitted on: Nov 7, 2019
Accepted on: Mar 20, 2020
Published on: May 26, 2020
Published by: SGH Warsaw School of Economics
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year
JEL:

© 2020 Mehmet Yasar, Ender Gerede, published by SGH Warsaw School of Economics
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.