The effects of institutional factors and resource dependencies on the airline business model change: The case studies of Turkish Airlines and Pegasus Airlines

This dissertation aims to understand and explain the change in the business models of Türk Hava Yolları A.Ş. (Turkish Airlines) and Pegasus Hava Taşımacılığı A.Ş. (Pegasus Airlines), which were established on different dates with different business models in the organizational field of airline passenger transport. To this end, drawing on the assumptions of the New Institutional Theory and Resource Dependence Theory, some semi-structured interviews were conducted with senior executives. The data obtained from the participants were supported with secondary data. The study revealed that that business models change over time and that their change can be explained by the assumptions of the New Institutional Theory and Resource Dependence Theory. The findings indicate that at the macro level, the change in the business models was driven by the influence of institutional logic and the institutions that dominate the organizational field, while at the micro level it was driven by the dependence on the resources the organization needs.