United we stand, divided we fall: historical trajectory of strategic renewal activities at the Scandinavian Airlines System, 1946–2012

Abstract

Although the second half of the twentieth century saw the rise and fall of ‘multi-flag companies’ (MFCs) in the civil aviation industry, our understanding of how some managed to buck the trend and achieve longevity remains limited. This article advances business history and strategic management research by examining the strategic renewal activities of Scandinavian Airlines (formerly Scandinavian Airlines System [SAS]) during the period 1946–2012. The study sheds light on the key roles of private and state owners, rivals as well as banks, in critical financial phases are discussed in terms of longevity in the company. The longevity of the business stems from the leaders’ ability to develop as anticipated and respond to change in their competitive arena in close interaction with the owners. Thus, incumbent firms that strategically renew themselves prior to or during market reform, such as deregulation, enhance their chances of developing the size of their networks and revenue streams. Our main contribution to business history and strategic management literatures is the development of context-specific stages, which shed light on the evolution of strategic renewal activities and shifts from older processes and routines towards customer service and efficiency.