Impact of Economic Performance in Organizational Capacity, Capability: A Case Study in Airline Industry

Abstract

This paper offers an integrated investigation of the interrelations among economic performance, organizational capacity, and organizational capability in airline industry. Airline capacity and capability are measured based on organizational capacity & capability theories and examined this relationship with structural equation modelingfrom209 airline companies annual report data. The research findings demonstrate the significant and intertwined roles of economic performance in enhancing the airline capacity and capability.