The impact of coordination and relationships in an outsourcing environment : the airline departure process

Abstract

Complicated business processes, like the airline departure process, that involve multiple job functions and even multiple companies need high levels of cross-functional coordination for successful completion. A study of the airline departure process at four stations of Icelandair showed that relationships and communication do impact performance. High levels of relationships and communication can have a positive impact on both efficiency and quality of the flight departure process at the same time. The design of systems of coordination and control and the approach to outsourcing of job functions or processes can impact levels of relationships and communication. Product offering and strategic importance of individual stations should decide how relationships with 3rd party service providers are constructed.