The Effect of Innovation Activities on the Performance of Ethiopian Airlines Group During Covid19

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Date

2021-08

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Addis Ababa University

Abstract

This study was conducted to assess the effect of innovation activities on the performance of Ethiopian Airlines Group during the time of the global airline industry crisis, which followed the emergence of the Covid19 pandemic. The researcher was motivated to seize the opportunity that the phenomenon was still fresh by the time the study was conducted. Consequently, the majority of the Airline staffs who have partaken in the process of tackling this challenge were used as sources of primary data, which benefited the study in getting a reliable source to respond to the survey quetions. A descripto-explanatory research design was used for the analysis, which employed both primary and secondary data as applicable to answer the research questions. The census survey included the 49 active partakers in the value stream of innovation management. This value stream includes stages of incubation, implementation follow up tasks and impact evaluation functions. Using the Statistical Package for Social Sciences (SPSS) software version 26, a multiple linear regression was conducted to determine the effect of innovation in the performance of Ethiopian Airlines Group during the three semiannual performance periods since the emergence of COVID19 pandemic. The results of the study have depicted that, process, product and organizational innovation had both significant and positive effect on the performance of Ethiopian Airlines, while marketing innovation was found to have insignificant effect on determining the performance of the Airline during the study period. In line with the findings, the researcher recommends that Ethiopian Airlines Group needs to continually strengthen its comparative and competitive advantages on innovation, in order to harness the sustaining virtues of firm innovativeness in trying times where the core business is impaired, as that created by Covid19 pandemic. Furthermore, the company needs to seriously examine its marketing innovation activities and reassess each corresponding investment on marketing innovation with a cost-benefit analysis

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Keywords

Ethiopian Airlines Group, Innovation, Performance

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