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Abstract
This paper argues that a critical dimension in understanding the factors that inhibit the effectiveness
and benefits of airline alliances is corporate transparency. Specifically, the issue of transparency in
corporate governance is considered. Corporate governance is the set of institutional arrangements
affecting corporate decision making, and deals with the relationship among various participants in
determining the direction and performance of corporations.
However, airline strategic alliances span an array of national cultures which influence the
development of such relationships. The impact of national culture as a determinant of governance
transparency is also investigated in this paper. This study draws on the literature which examines
the impact of national culture on international joint ventures and governance systems. National
cultures are described by Hofstede’s five dimensions of power distance, uncertainty avoidance,
individualism, masculinity, and temporal orientation.
Governance transparency is investigated by the examination of corporate annual reports.
Thus, this study investigates not only the level of corporate governance transparency demonstrated
by participants in each of the three major airline alliances, but the relationship between said
governance transparency and the cultural identity of each of the participants.