Strength of middleness: Airline accidents of the International Air Transport Association members, from 1990 to 2005

In this paper, I investigate how firms in different developmental stages further their
capabilities to reduce accidents. Drawing on theories of dynamic capabilities and
organizational learning, this study focuses on non-US commercial passenger carriers
and their accident rates from 1990 to 2005. Findings of generalized least square
estimations for the accident rates reveal that capabilities to reduce further failures are
differed by a developmental stage of an organization since dominant sources of
learning change according to the stage. Prior experience becomes a primary source of
building capabilities to reduce accidents for airlines in market dominant stage whereas
visible events in the industry are the main source of learning for firms in
nascent/shrinking stage. Organizations in the developing stage are likely to learn from
both sources and see the relative decrease in accident rates in the near future. The
results of this research enhance our understanding of possible origins of the diversity
in capabilities within a population and within a single firm as well as suggest the need
for additional attention to failure-driven research