{"title":"Competitive advantage and fuel efficiency in aviation","authors":"Adam D. Reiman, Alan W. Johnson, W. Cunningham","doi":"10.22237/JOTM/1317427560","DOIUrl":"https://doi.org/10.22237/JOTM/1317427560","url":null,"abstract":"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 nonsubstitutable 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. INTRODUCTION A firm’s efficient utilization of resources can be a source of competitive advantage. For the aviation industry, the resource that makes up the largest component of total cost is fuel. Aviation industry fuel encompassed 20% of total costs in 2007 and United Airlines saw their cost of fuel, as a percentage of total cost, vary between 10% and 25% from 1973 to 2006 (Mazraati, 2010). A dynamic capability to obtain the efficient use of fuel and reduce those costs could lead to a sustained competitive advantage. Barney (1991) suggests a rationale for a resource based view of sustained competitive advantage. The two main assumptions of this view are that a firm’s resources are heterogeneous and that those resources may be immobile across firms. In addition, resources that provide for a sustained competitive advantage must be valuable, rare, inimitable and non-substitutable. Fuel is not rare or inimitable. Fuel as a resource therefore will not provide for a sustained competitive advantage. Yet, a firm's dynamic capabilities properly applied to fuel efficiency can achieve that advantage. Eisenhardt and Martin (2000) expanded upon Barney’s resource based view model by adding dynamic capabilities as potential sources of sustained competitive advantage. AVIATION FUEL EFFICIENCY AND DYNAMIC CAPABILITIES Dynamic capabilities as defined by Eisenhardt and Martin are those “‘organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve and die.” Some examples given of dynamic capabilities include alliancing, product development and strategic decision making. Eisenhardt and Martin suggest that dynamic capabilities can be a source of competitive advantage by altering a firm’s resource base. The efficient utilization of fuel in the aviation industry is dependent upon alliancing, product development and strategic decision making. A model for implementation of a fuel efficiency strategy can be seen in Figure 1. The model's three elements — strategic decision making, supply chain fuel ","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"257 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125796160","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Concentration in the airline industry : evidence of economies of scale?","authors":"Ahren Johnston, J. Ozment","doi":"10.22237/JOTM/1317427500","DOIUrl":"https://doi.org/10.22237/JOTM/1317427500","url":null,"abstract":"The early experience of the airline industry under deregulation was very much as expected, with increased competition and new entrants offering highly competitive rates. However, there are approximately 130 airlines operating today, and the industry remains more heavily concentrated than it was prior to deregulation. This study reports on concentration in the US airline industry between 1970 and 2009, as measured by the Herfindahl-Hirschman Index (HHI) and Concentration Ratio, together with changes in industry costs. The results show a trend of industry-wide reduced costs per available seat mile that is negatively correlated with the increased level of industry output over the last 30 years and increased concentration, which demonstrate the need for more research into the question of scale economies in air transportation.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128877040","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. A. Mcginnis, T. Harcar, A. Kara, John E. Spillan
{"title":"Cross-cultural validation of the factorial structure of a logistics strategy model : a three-country study","authors":"M. A. Mcginnis, T. Harcar, A. Kara, John E. Spillan","doi":"10.22237/JOTM/1317427380","DOIUrl":"https://doi.org/10.22237/JOTM/1317427380","url":null,"abstract":"In 2011, McGinnis, Kohn, and Kara reported the effects of overall logistics strategy (OLS) on logistics coordination effectiveness, customer service effectiveness, and organizational competitive responsiveness. This manuscript empirically compares the three dimensions of the Bowersox Daugherty typology to logistics strategies among U.S., Turkish, and Guatemalan companies. US, Turkish, and Guatemalan subjects (logistics managers) were chosen to test the underlying factor structure and measurement equivalences of the scales used. Using confirmatory factor analysis (CFA), findings indicate that the three dimensions of the Overall Logistics Strategy (OLS) - Process Strategy, Market Strategy, and Information Strategy - hold in all three country environments studied. However, structural equation modeling shows nonequivalent relationships between OLS and independent variables; logistics coordination effectiveness, customer service commitment, and organizational competitiveness for one of the three countries. We evaluate these findings in light of recent research into logistics strategy research on U.S. firms. Insights for those interested in comparative logistics strategies are provided.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130877155","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A commentary: The perfect storm: Schramm decision, FMCSA, and an imposible duty for brokers and third party logistics companies","authors":"Paul Stewart","doi":"10.22237/JOTM/1317427320","DOIUrl":"https://doi.org/10.22237/JOTM/1317427320","url":null,"abstract":"Over the last thirty years, there never has been a more confused doctrine than the current “duty of reasonable care” faced by transportation brokers, third-party logistics companies and shippers as they select carriers for transport. The confusion in what was once reasonable and well understood law has been fueled by a perfect storm of judicial reasoning with misplaced reference to faulty empirical data, the complete failure of the Federal Motor Carrier Safety Administration (FMCSA) to properly assess carrier safety worthiness, a feeding frenzy by the plaintiffs’ bar and apathy by many in the industry. The purpose of this commentary is to examine how this uncertainty developed, to identify some of the more glaring issues that must be addressed, and to give some possible guidance as to how the industry, FMCSA and courts should proceed to clarify the duty of a broker in complying with “reasonable care” in selecting carriers.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"69 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132217378","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Michigan passenger rail : an analysis of community benefits","authors":"James L. Roach, J. C. Taylor","doi":"10.22237/JOTM/1301616300","DOIUrl":"https://doi.org/10.22237/JOTM/1301616300","url":null,"abstract":"Passenger rail service is perceived to provide important benefits to Michigan communities. However, the extent of these benefits has never been quantified in a systematic way. The study reported on here involved the performance of a broad based assessment of the community level benefits of passenger rail service. The main objective of the research project was to estimate the full range of these benefits at the community level, as opposed to at the state level. Benefits were estimated for individual travelers, Amtrak expenditures, and local businesses. This research indicates local communities currently realize $62.0 million annually in benefits. Additional benefits accrue to the region, state, and nation in the form of congestion relief, air quality improvement, energy conservation, and safety.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"94 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126229603","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The selection of transshipment ports using a hybrid data envelopment analysis/analytic hierarchy process","authors":"Byungin Park, Hokey Min","doi":"10.22237/JOTM/1301616240","DOIUrl":"https://doi.org/10.22237/JOTM/1301616240","url":null,"abstract":"The accelerated globalization of logistics activities over the last several decades has spurred a rapid expansion of port facilities all cross the world. However, the recent slowdown of international trade, coupled with a global financial crisis, has created an on-going glut of international port facilities throughout the world. Although the abundance of port facilities provides more transshipment options for carriers and shippers, it makes the port selection decision more complex and difficult. To cope with this new set of challenges, this paper proposes a hybrid data envelopment analysis (DEA)/ analytic hierarchy process (AHP) model that is designed to identify factors specifically influencing transshipment port selection, evaluates the extent of influence of those factors on a transshipment port selection decision, and then determines the most critical ones among various factors. To illustrate the usefulness of the proposed hybrid DEA/AHP model, major container hub ports in FarEast Asia were analyzed.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"8 3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123687632","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Identifying traffic count posts for origin-destination matrix adjustments : an approach to actual-size networks","authors":"S. A. Bagloee, Mohsen Asadi, L. Richardson","doi":"10.22237/JOTM/1301616360","DOIUrl":"https://doi.org/10.22237/JOTM/1301616360","url":null,"abstract":"For transportation planners, the use of Origin-Destination (OD) matrix adjustment, is receiving considerable attention. However, there are concerns about the validity of results, primarily related to the number and location of traffic count posts. This leads to the question “What would be the best set of traffic count posts to use in OD matrix adjustment modules?” It has been proved that solving this problem is cumbersome. There have been several attempts (either exact or heuristic approaches) to address this problem. But due to the inherent complexities, there is no efficient and easy-to-use methodology able to address situations on the scale of actual cases. This study demonstrates a simple way of identifying traffic count posts tailored to deal with real-size cases. The proposed methodology is based on a maximum matrix coverage criterion. Using a limited number of incremental trials, a set of links whose traffic flows give maximum coverage of the demand and maximum fitness to the corresponding traffic count rates are identified as traffic count posts. The results show that more traffic count posts do not necessarily yield a better result. This article reports on a project conducted for the public works ministry of the UAE city of Sharjah.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125792843","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"LOGISTICS SERVICE ORIENTATION: AN INTEGRATED STRATEGY TO BUILD LOGISTICS SERVICE COMPETENCY","authors":"Mert Tokman, R. Richey, Haozhe Chen","doi":"10.22237/JOTM/1301616180","DOIUrl":"https://doi.org/10.22237/JOTM/1301616180","url":null,"abstract":"While the importance of logistics service competency is widely acknowledged, more research is needed to investigate its antecedents. In this conceptual paper, we synthesize extant marketing and logistics/supply chain literature and propose a new concept – logistics service orientation, which consists of both logistics service’s internal and external market orientation. It is argued that a firm’s logistics service orientation has direct impacts on its logistics service performance. In addition, it is also proposed that this impact can be indirectly achieved through enhanced internal integration. This research contributes to existing knowledge by offering new insights on the development of logistics service competency.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"62 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128521988","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Driver safety and motor carrier profitability : identifying and understanding drivers in the fleet","authors":"J. Kent, R. Coulter, Mary K. Coulter","doi":"10.22237/JOTM/1301616120","DOIUrl":"https://doi.org/10.22237/JOTM/1301616120","url":null,"abstract":"The objective of the study was to quantitatively explore truck driver safety records in an effort to determine and classify various types of drivers. Six safety variables relating to the number of safety points each driver had accumulated were analyzed using a cluster analysis procedure on 368 active drivers. The results of the study identified three clusters of drivers. Over 49.3 percent of the drivers were identified in a cluster labeled as the “Best Drivers.” The label “Ticket Magnets” was given to 23.6 percent of the drivers, and 27.1 percent of the sample was given the label “Accident Prone.” The individual clusters were also profiled on additional variables. The study findings indicate that most drivers are very good in all aspects of driver safety. Other drivers have some deficiencies which are addressed as managerial implications in the manuscript.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"526 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123065897","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The relationship between measures of operations efficiency and financial success of truckload motor carriers : an empirical analysis","authors":"Ahren Johnston","doi":"10.22237/JOTM/1285891320","DOIUrl":"https://doi.org/10.22237/JOTM/1285891320","url":null,"abstract":"This research paper examines the statistical relationship between day to day performance and efficiency measures and financial performance in the motor carrier industry. Key findings are that carriers with more miles per tractor per year, a larger average length of haul, more revenue per mile, and more revenue per tractor per week tend to perform better financially as measured in three separate models by operating ratio, return on assets, or return on equity. Unexpectedly, for the eight publicly traded carriers included in the analysis, there was a negative relationship between empty mile percentage and financial performance, indicating that carriers with a higher empty mile percentage have better financial performance. Possible explanations for these counterintuitive results could be due to a focus on better customer service or driver satisfaction causing slight increases in empty miles. Therefore the increased costs resulting from empty miles could be offset by higher revenue or decreased costs in other aspects of the operation. These results suggest that managers should focus not on minimizing empty miles but rather on keeping them within an acceptable range.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128797842","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}