THE INTEGRATION APPROACH: INTEGRATING TECHNOLOGY STRATEGY WITH BUSINESS STRATEGY IN THE AIRLINE INDUSTRY

Technology has emerged as a key component in solving complex strategic issues. Much of the relevant literature recognises technology as the driving force behind the fast rate of change in many markets. Consequently, organisations are becoming increasingly dependent on advanced technology to improve their performance. At the same time organisations need to be extremely flexible in order to meet the demands of customers quickly, accurately and cost-effectively. To benefit from the potential of technology in highly dynamic environments, there is a need to integrate technology strategy with business strategy. This research explores the integration between technology strategy and business strategy in the airline industry. The literature on technology, technology strategy, corporate strategy, business strategy, competitive advantage and the integration of technology strategy with business strategy is critically evaluated and shortcomings of the literature are identified. The literature review was evaluated and identifies gaps and possible future directions. This indicated a need for a systematic way of linking technology and business strategies. Thus an Integration Model is proposed consisting of three stages involving business strategy, competitive strategy and technology strategy. The literature review and the Integration Model identified the importance of technology assessment in formulating a technology strategy and the need for a supportive tool to aid this process.