AirAsia: Towards a ‘new world’ carrier strategy and implications for performance management system design

This chapter explores the changes occurring in the adopted strategies of airlines and the implications of new strategic orientations on the design of organisational performance management systems. The contingency theory literature recognises the impact of different strategic positions (e.g., Porter’s low-cost and differentiation strategies) on performance management system design (Anthony and Govindarajan, 2007). However, there has been little attention given to performance management design for organisations adopting a hybrid cost leadership/differentiation strategy (Adler, 2011; Ferreira and Otley, 2009; Ozdemir and Mecikoglu, 2016).