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Halpern (2006) Phd Thesis CRANFIELD UNIVERSITY N HALPERN MARKET ORIENTATION AND THE PERFORMANCE OF AIRPORTS IN EUROPE’S PERIPHERAL AREAS SCHOOL OF ENGINEERING HUMAN FACTORS AND AIR TRANSPORT AIR TRANSPORT GROUP PhD THESIS CRANFIELD UNIVERSITY SCHOOL OF ENGINEERING HUMAN FACTORS AND AIR TRANSPORT AIR TRANSPORT GROUP PhD THESIS Academic Year 2006-2007 N HALPERN Market orientation and the performance of airports in Europe’s peripheral areas Supervisor: R Pagliari December 2006 This thesis is submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy © Cranfield University 2006. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright owner. I. Abstract I. ABSTRACT As a consequence of deregulation in the airline industry, market forces rather than public service considerations increasingly dictate services to and from airports in Europe’s peripheral areas. The new market advocates market-driven management practices as a means of satisfying airline customers and implies that airports that adopt a more market- orientated approach than their rivals will perform better. This study investigates the theoretical foundations of a market orientation, which can be defined as the organisation- wide generation, dissemination and response to market intelligence. The main aim of this study is to examine the relationship between market orientation and the performance of airports in Europe’s peripheral areas. The research methodology was implemented using a questionnaire-based survey that was administered to the managers of 217 airports in 17 different countries. Usable responses from 86 airports were received and analysed. The findings of this study suggest that airports wishing to outperform competitors can do so by adopting a market orientation and should seek to continually monitor and improve the way in which they gather, disseminate and respond to market intelligence. This will be particularly effective when market turbulence is high and/or when the focus of the airport is on developing leisure services. In addition, market orientation was found to have a positive effect on performance because it means that airports are more likely to be innovative in their approach to marketing. This means that airport managers should try to develop a market-orientated culture with innovative marketing practices in mind, and visa versa. The fact that independently-owned airports have significantly higher levels of market orientation than regionally-owned or nationally-owned airports suggests that independent ownership is more conducive to the development of a market orientation. The findings of this study do have a number of limitations, the most notable being that they are restricted to airports in Europe’s peripheral areas. It is recommended that future i I. Abstract research should be conducted on airports worldwide in order to investigate differences between a wider range of airport types and geographical regions. In addition, the findings of this study suggest that a stakeholder orientation is important for airports seeking to improve their performance, especially smaller airports that are publicly-owned. It is recommended that future studies should investigate antecedents to and consequences of a stakeholder orientation. Future studies should also investigate whether a stakeholder orientation has a greater effect on performance than a market orientation does, and whether the two types of orientation complement each other. Key terms: Europe’s peripheral areas; deregulation of European air transport markets; market orientation; airport marketing performance ii II. Dedication II. DEDICATION “This thesis is dedicated to my wife and my parents” iii III. Acknowledgements III. ACKNOWLEDGEMENTS Conducting a study of this nature is not possible without the help and support of a range of individuals and organisations. Firstly, I would like to thank my supervisor at Cranfield University (Dr Romano Pagliari). Dr Pagliari has kept me on track for the duration of my studies and has always shown an interest and understanding in my chosen subject. Staff at the Centre for Air Transport in Remoter Regions at Cranfield University have provided an additional network of support and have provided an outlet for my research by way of their bi-annual Forum on Air Transport in Remoter Regions. I would also like to thank my former line manager at London Metropolitan University (Dr Curtis Swanson). Dr Swanson is currently Chair of Faculty at the College of Aviation at Western Michigan University. He played a key role in facilitating my entry into academia and stimulated my initial interest in studying for the degree of Doctor of Philosophy. London Metropolitan University supported that interest by providing an academic setting and financial assistance for the duration of my studies. The early stages of my studies involved the definition and measurement of Europe’s peripheral areas and I am grateful to Dr Carsten Schürmann from the Institute of Spatial Planning at the University of Dortmund for sharing his knowledge and understanding of peripherality with me. Dr Schürmann also provided raw data that enabled me to define and measure Europe’s peripheral areas. Academic institutions that are located in Europe’s peripheral areas provided me with opportunities to present my research and to discuss related issues with students, staff and local stakeholders. This includes Stavanger University (where I have delivered guest lecturers and staff seminars on my research) and Mid-Sweden University and The European Tourism Research Institute (where I have delivered staff seminars on my research and contributed to an airport development forum with the manager and stakeholders of iv III. Acknowledgements Östersund airport). The 2005 Nordic Symposium on Tourism and Hospitality Research provided further opportunities for me to present and discuss my research. Other academics and members of industry that I would like to thank are listed in table 4.8, 4.9 and 4.10 of this thesis. All of them provided expert advice and comments on the research strategy for this study. I would also like to thank all of the airports that took part in this study and are listed in Appendix H of this thesis. I am particularly grateful to the respondents that took the time to complete the survey and make this study possible. Family and friends deserve a special mention. My parents have shown me the value of education and have always supported me and shown an interest in my studies whilst my brothers have encouraged me to balance my academic pursuits with a social life! Family and friends on my wife’s side are from Norway; a country that is fairly peripheral in the context of Europe. The many trips to Norway have stimulated my initial and ongoing interest in the needs and challenges of air transport in such areas. Finally, I would like to thank my wife, Anne-Merete. I have combined my studies with a full-time job so almost all of my spare time away from work has been spent on the computer in our small flat in London. The computer is located in the living room and Anne-Merete has not been able to escape my constant tapping on the keyboard and groaning at the screen. Anne-Merete also became a sounding board for my ideas and anguish. Despite its intrusion into our personal life, Anne-Merete has always supported my studies and never complained. v IV. Contents Page IV. CONTENTS PAGE I. ABSTRACT.........................................................................................................................i II. DEDICATION..................................................................................................................iii III. ACKNOWLEDGEMENTS ............................................................................................iv IV. CONTENTS PAGE.........................................................................................................vi V. LIST OF TABLES............................................................................................................ix VI. LIST OF FIGURES.........................................................................................................xi VII. LIST OF APPENDICES..............................................................................................xiii VIII. LIST OF ABBREVIATIONS ....................................................................................xiv 1. INTRODUCTION..............................................................................................................1 1.1 Background and rationale.............................................................................................1 1.2 Statement of the problem..............................................................................................2 1.3 Aim and objectives .......................................................................................................4 1.4 Method of study............................................................................................................4 1.5 Constraints and limitations...........................................................................................5 1.6 Thesis structure.............................................................................................................5 2. LITERATURE REVIEW...................................................................................................8 2.1 Peripherality .................................................................................................................9
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