The Impact of UK Border Security Controls on Passenger Carriers’ Relationships with Stakeholders

Kirstie Ball, Sally Dibb, Elizabeth Daniel, Maureen Meadows and Keith Spiller - Open University Business SchoolAna Canhoto - Oxford Brookes University

Ball et al 2011

Global issues – local impact

Ball et al 2011

e-Borders

• Scrutiny of cross-border passenger traffic• Carriers, on behalf of UK Borders Agency– Since 2009, air; All should comply by 2014

• Rationale:– Firms’ direct contact with their customers enables

them to collect passenger data

• Major change in the macro setting

Ball et al 2011

Research Question

What is the impact of e-Borders on the carriers’ relationships with their customers and other

stakeholders?

-Complex problem involving multiple organisations-Interdependence and uncertainty-Focus on micro-level dynamics (Arnaboldi and Spiller 2011)

Ball et al 2011

Research Framework

Inter-organisational research in tourism studies:1.Identification of key stakeholders and their interests2.Power distribution and the emerging mechanisms for decision making3.Long term outcomes and structure of the multi-stakeholder process

Ball et al 2011

Methodology

Ball et al 2011

Findings: 1.Key Stakeholders and Their Interests

• Various organisations and sets of interests– E.g., travel agents, tour operators, seat brokers…

• Tensions:– Legal vs. commercial obligations– Nature of jobs– Competitors– Service delivery:

• Mistakes and time consuming• Uncertainty– EU ruling, IT contractor, …– Impact on implementation work already

undertaken?Ball et al 2011

Findings: 2.Power and Decision Making Mechanisms

• De-centralised system:– Frustration

• UK BA:– Sets data and transmission requirements– Chose consortium of suppliers to build the IT

system– Discussion about the system’s interface with pan-

industry bodies BUT largely ignoring how the industry worked

• Disparity between air carriers’ legacy systemsBall et al 2011

Findings: 3.Long Term Outcomes and Structure

• Changing requirements– Onus expected to shift to carrier

• Carriers as the focal point in the emerging structure– Rely on others to collect customer data– Rely on government to define the requirements

• Impact on customer interface– E.g., airport services

• Competitors influencing each otherBall et al 2011

Discussion

• Commercial vs. political interests• Carriers internalise costs– Resentment, particularly during recession

• Range of intangible costs– Transaction time, complexity, mistakes…– Impact on service delivery and customer experience

• Unclear long-term impact on the route of travel– Safety is key variable in destination choice (Smith and

Carmichael, 2005)

Ball et al 2011

Discussion• Strained relationships with influencer and supplier

markets– Disproportionate influence of power brokers (Jamal and

Getz, 1995)– Negative impact on customer interaction

• Relationship between firms and referral market is critical– Can significantly smooth the data collection process– Also face technology, personnel and recruitment costs

• Interconnection between firm and competitors– Influence government and emerging technical solution– Present in other public tourism goods – e.g., sustainability

(Erkus-Ozturk and Eraydin, 2010)– Not traditionally considered in the marketing literatureBall et al 2011

The Impact of UK Border Security Controls on Passenger Carriers’ Relationships with Stakeholders

Kirstie Ball, Sally Dibb, Elizabeth Daniel, Maureen Meadows and Keith Spiller - Open University Business SchoolAna Canhoto - Oxford Brookes University

Ball et al 2011