Journal of Transportation Management


This paper builds upon a resource based view of competitive advantage under a dynamic capabilities construct. Fuel efficiency measurement in the aviation industry can be incorporated into dynamic capabilities such as strategic decision making and alliancing. These dynamic capabilities can drive operational cost reductions, which in-turn can enhance profitability and establish a competitive advantage. To further this advantage, fuel efficiency can be embedded inside an organizational culture. A fuel efficiency focused organizational culture can be a valuable, rare, inimitable and non- substitutable resource. This paper proposes a model to merge the dynamic capabilities of strategic decision making and alliancing with organizational culture under fuel efficiency. Under this model, a fuel efficiency index is introduced to drive behavior and provide accountability. Effective use of the index has profit potential.