The mediating role of dynamic capabilities on the effect of organizational learning on strategic flexibility: A research in the airline industry

The airline industry is a dynamic sector in which rapid technological developments and structural changes occurs. In accordance with the recent developments the sector has gained a reputation of constant growth and self-renewal. Thus, the airline industry is generally volatile and unpredictable. In such a market, increasing the strategic flexibility levels is one of the most important strategic tools that airlines can use to sustain their operations. In this context, this study seeks to scrutinize the literature on strategic flexibility, organizational learning, and dynamic capabilities, and to determine whether the dynamic capabilities have any mediation effects on the relationship between organizational learning and strategic flexibility in the airline industry. This study also aims to determine whether organizational learning has any effects on dynamic capabilities, dynamic capabilities on strategic flexibility, and organizational learning on strategic flexibility. The relationships outlined were tested through a survey which was administered to mid and senior level managers working in the headquarters of airlines operating in Turkey. The findings show that there were positive relationships between organizational learning, dynamic capabilities, and strategic flexibility. Furthermore, dynamic capabilities were found to have an intermediary effect on the relationship between organizational learning and strategic flexibility. The results also show that the levels of strategic flexibility differ statistically according to the age and size of the airlines. This study possesses unique value in terms of both eliminating the gap in the airline sector literature as well as increasing the level of strategic flexibility in airline companies.