TY - JOUR
T1 - How Do Market Standards Inhibit the Enactment of Digital Capabilities?
T2 - A Case Study of Airline Pricing
AU - Fürstenau, Daniel
AU - Cleophas, Catherine
AU - Kliewer, Natalia
PY - 2020/8
Y1 - 2020/8
N2 - Digital capabilities can improve organizations’ performance by supporting complex decision-making processes. However, when market standards constrain their enactment, the potential benefits promised by digital capabilities do not realize. The paper explores this tension by means of the critical case of a European airline, which had difficulty to enact a novel pricing approach and finds that market standards are entrenched in the airline’s pricing and distribution ecosystem. This causes the organization to focus on local improvements and IT-based workarounds instead of enacting a dramatically new and potentially improved digital pricing capability.
AB - Digital capabilities can improve organizations’ performance by supporting complex decision-making processes. However, when market standards constrain their enactment, the potential benefits promised by digital capabilities do not realize. The paper explores this tension by means of the critical case of a European airline, which had difficulty to enact a novel pricing approach and finds that market standards are entrenched in the airline’s pricing and distribution ecosystem. This causes the organization to focus on local improvements and IT-based workarounds instead of enacting a dramatically new and potentially improved digital pricing capability.
KW - Air transport
KW - Digital capabilities
KW - Market standards
KW - Path dependence
KW - Pricing
UR - https://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=1000000000543523&rft.object_portfolio_id=&svc.holdings=yes&svc.fulltext=yes
U2 - 10.1007/s12599-019-00588-1
DO - 10.1007/s12599-019-00588-1
M3 - Journal article
AN - SCOPUS:85081335840
VL - 62
SP - 279
EP - 287
JO - Business & Information Systems Engineering
JF - Business & Information Systems Engineering
SN - 2363-7005
IS - 4
ER -