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ENTREPRENEURSHIP OF AVIATION INDUSTRY IN THE PERSPECTIVE OF

SUSTAINABLE DEVELOPMENT

Conference Paper · June 2011

DOI: 10.5593/sgem2017/53/S21.038

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www.sgem.org Environmental Economics

ENTREPRENEURSHIP OF AVIATION INDUSTRY IN THE PERSPECTIVE

OF SUSTAINABLE DEVELOPMENT

Assist. Prof. Dr. Joanna Machnik-Słomka

Silesian University of Technology, Poland

ABSTRACT
For the development of the aviation industry more and more important becomes the
issue of sustainable development, taking into account the coexistence and interaction of
the three capitals: social, ecological and economic. The article focuses on the
mechanisms of improving the effectiveness of the implementation of this concept.
It was found that the effective implementation of the concept of sustainable
development requires entrepreneurial activities of various entities aimed at the
integration and synergy of these three subsystems. Entrepreneurship can play an
important role in minimizing the negative impact of aviation companies on the
environment, for example by initiating and realization of innovative projects related to
environmental protection, dissemination of eco-innovation, clean technologies, more
ecofriendly economy, increasing environmental awareness. Therefore in the article
special attention is paid to entrepreneurship treated as an important mechanism for
development. The aim of this article is to present the significance and impact of
entrepreneurship on sustainable development of the aviation industry. The study is
based on desk research and the method of in-depth interviews with representatives of
the aviation industry.
Keywords: sustainable development, entrepreneurship, aviation industry.

INTRODUCTION
At present, the aviation industry shows numerous actions aimed at performance of the
concepts of sustainable development. It results from the necessity to reduce the harmful
impact on the environment of detrimental emissions, problems arising from limited
natural resources which influence the price increase as well as the necessity to meet the
higher and higher clients’ expectations (connected with, e.g. increase of plane
connections with simultaneous price reduction). It is also justified by observed global
trends connected with the necessity to build low-emission and resource-saving economy
based on ecological, sustainable technologies which, at the same time, contribute
positively contribute to the social development. Nowadays, it is possible to notice
a visible change of the development paradigm aimed towards the concept of sustainable
development which became a new global challenge. It is perceived as a specified system
which requires harmonious integration and operation of three zones: economic, social
and ecological [1].
On a global scale, the sustainable development of aviation industry is of great
importance since this industry plays a key role in a global and EU economy. It is
a strong driving factor of economic growth, employment, commerce and mobility in
European Union [2]. The beneficial conditions led to significant development of the
17th International Multidisciplinary Scientific GeoConference SGEM 2017

European aviation sector. This sector employs almost 2 million people in EU and its
value for European economy is 110 billion euro [2]. The strategy projects that aviation
traffic in Europe will amount to 14.4 million of flights in 2035 which constitutes the
increase of 50 percent in relation to year 2012. This industry is included in the sector of
high technology which is the carrier of economic and technological progress. The
aviation industry is a creator or numerous innovative solutions which are also
transferred to other industries of the economy. Ecological technologies, sustainable
innovations are of higher and higher importance. A sustainable innovations, a term
which comes from a term: sustainable development, is a relatively new concept [3].
Introducing these innovations involves producing economic, environmental and social
results [4]. In the literature of the subject, it is increasingly emphasized that in the
future the ecological aspects will be marked by the intensification of innovative
processes [5].
Sustainable and permanent growth of the aviation industry will require the employment
of new, effective mechanisms targeted at wide cooperation of numerous entities in this
industry. For this reason, in this paper, the particular attention is paid to the
entrepreneurship perceived as a significant mechanism of development.
Entrepreneurship is a multi-aspect and interdisciplinary concept which plays a vital role
in many fields of economic and social life [6]. Multi-facetedness of this topic influences
many scientific approaches to entrepreneurship presented from various perspectives in
numerous interpretation contexts. Entrepreneurship can be interpreted as a set of
behaviours (actions and reactions) the aim of which is establishment and performances
of undertakings which allow for achievement of particular values in the situation of
uncertainty and risk [7]. Entrepreneurship is a type of activity characteristic of creative
thinking and organizational and planning skills which lead to taking advantage of
opportunities [8,9]. In the context of sustainable development, entrepreneurship can be
therefore defined as activity consisting in the use of occurring opportunities by
performance of undertakings bringing economic, social and environmental results.
Grateful acknowledgement for the research support from the Polish National Science
Center in Cracow (grant no. UMO-2012/07/B/HS4/03128).

METHODS
The basic aim of this paper is presentation of the importance and influence of the
entrepreneurship on sustainable development of aviation industry. In order to achieve
this aim, a study based on desk research and interviews with representatives of aviation
industry was conducted.
The paper concentrates on mechanisms which increase the effectiveness of
implementation of the concepts of sustainable development. It was assumed that the
effective implementation of the concept of sustainable development of aviation industry
requires various entities to take entrepreneurial actions aimed at integration and synergy
of three subsystems: social, economic and environmental.
The purpose of desk research was to operationalise the concept of entrepreneurship in
the aspect of sustainable development as well as review of documents strategical for
aviation industry. Whereas, the aim of empirical research conducted on the basis of the
interview method was acquisition of the opinion of leaders, managers from the aviation
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industry on the topic of perception of entrepreneurial actions for the benefit of

sustainable development. The extensive interview covered a wider scope of aspects of
entrepreneurial development of aviation industry. It is necessary to highlight the
ecological awareness of experts from the aviation industry as to the increasing
importance of actions targeted at sustainable development and of benefits arising from
this activity undertaken for development of this sector. A dozen or so leaders, managers
of enterprises, start-ups, supporting institutions, such as technological parks, conducting
activity in the aviation industry, constituted the subject of the study.
On the basis of the conducted desk research analysis, subject literature, review of many
source materials (including strategical ones connected with the aviation industry) as
well as analysis of the interview content, the list of methods and manners of taking
entrepreneurial actions, supporting introduction of the concept of sustainable
development in aviation industry enterprises, was drafted. In addition, benefits arising
from the implementation of the concept of sustainable development in the social,
economic and environmental fields, which are achieved as a result of entrepreneurial
actions of different aviation industry entities were identified.

RESULTS AND DISCUSSION

The conducted desk research analysis based on strategical industrial documents
indicates that the actions of aviation industry for the benefit of sustainable development
are gaining more and more importance. It is reflected in strategical documents on the
national UE level, i.e. Strategy Europa 2020, „Aviation Strategy for Europe”,
“Flightpath 2050. Europe’s Vision for Aviation”. EU Aviation Strategy creates
a framework which enables European aviation to maintain the position of a global
leader as well as competitive stand and development of aviation industry in
a sustainable manner [2]. This strategy also constitutes the confirmation of the Europe’s
involvement in sustainable aviation development which, as it is highlighted in the
document, is an extremely up-to-date matter [2]. The aim of the European Commission
is to form a complex strategy covering the entire EU aviation “ecosystem”. Aims
specified in “Flightpath 2050. Europe’s Vision for Aviation” concern, for example,
reduction of emission of carbon dioxide, nitrogen oxide as well as the level of noise
generated by aircrafts [10]. In order to achieve these aims, the attention was paid to the
need of intensification of works on new technologies. The presented documents show
an obvious direction of the development of aviation industry, including plane transport,
towards eco-innovative solutions which are necessary for sustainable development of
the entire aviation industry and fields which it affects.
As a result of the conducted analysis, it was concluded that entrepreneurship can play
a significant role in mineralisation of negative impact of aviation enterprises on
environment. Entrepreneurship in the context of sustainable development can be
perceived in three main fields [11, 1,12]:
• in social field - it is visible in behaviour of social groups, entities, shaping
awareness. Entrepreneurship in the social field is connected with socially
conditioned process of opportunity generation, detection and taking advantage of
developmental chances,
17th International Multidisciplinary Scientific GeoConference SGEM 2017

• in the ecological field - it means activity aimed at respect and restoration of

natural environment, actions for reduction of contamination, application of pro-
ecological technologies with simultaneous observance of legal regulations and
consideration of pro-ecological impact on the market and consumers’ ecological
values.
• in the economic field - it consists in establishment of new enterprises,
conducting economic activity, introduction of new products, development of
new organisational and management methods, creation and employment of
opportunities which include strategical renewal of existing organisations.
In the aspect of sustainable development, ecological entrepreneurship is of particular
importance, the goal of which is the initiation and realisation of projects related to
environmental protection, dissemination of clean technologies, recycling and deepening
society’s knowledge and awareness, striving to create a green, more eco-friendly
economy[1].
As it can be concluded from the conducted analysis of the subject literature, it is
necessary to apply new effective organisational, social mechanisms, including
entrepreneurial actions taken by different entities from this industry, in order to
effectively implement the concept of sustainable development in the aviation industry.
An example of this is initiation of innovative projects connected with the environmental
protection, popularisation of eco-innovation, pure technologies, more ecological
economy, implementation of environmental management, increasing ecological
awareness. The scientific literature highlights that “entrepreneurship, in the ecological
aspect, can be connected with changes in organisations [5]. Currently, the attention is
paid to the concepts connected with re-engineering or improvement of quality in
relation to ecological aspects, considering the role of process approach with separation
of, e.g. pro-ecological management processes [13]. Therefore, application of different
organisational concepts, methods and manners of entrepreneurial actions would be
helpful in the implementation of the concept of sustainable development (Table 1).

Table 1. Examples of methods and ways of entrepreneurial activity of the aviation

industry for sustainable development.
Sphere Methods and ways of entrepreneurial activities
Social  implementation of a socially conditioned process of generating opportunities,
detecting and exploiting development opportunities,
 initiating and undertaking joint ventures and projects for the protection of the
environment,
 applying effective social mechanisms,
 social awareness programs that translate into value systems and shaping
appropriate attitudes and behaviors,
 introduction of socially acceptable standards, norms and patterns of
environmental valuation,
 creating appropriate incentive and reward systems for employees who are most
involved in environmental activities,
 implementation of the Corporate Social Responsibility concept, socially
responsible management of ethical and moral behavior without costing society
and nature
 building social and internal relations, introducing network-based forms of
www.sgem.org Environmental Economics

cooperation based on trust (social capital)

Environmental  activities for respect and restoration of the environment,
 action for environmental impact on the market and ecological values of
consumers
 actions to reduce pollutant emissions, the use of environmental technologies
 internal and external information campaigns promoting environmental
activities,
 environmental education that raises the level of knowledge about sustainable
development,
 introduction of pro-ecological management processes
 action to reduce the consumption of raw materials,
 carrying out environmental audits
Economic  co-innovation research and development activities that help protect the
environment and save resources,
 development of new organizational and management methods,
 creating and implementing strategies and methods that support sustainable
development in organizations (eg. environmental management, eco-design,
clean production, sustainable production, industrial ecology, re-engineering
concepts, quality improvement in relation to ecological aspects, quality
assurance systems),
 green headquarters,
 creation and development of eco-innovation such as sustainable and green
engines, eco-design,
 implementing effective innovation management systems,
 creating new businesses

The study shows that the development of entrepreneurship of particular entities

significantly depends on the environment in which different forms of interdependence
and cooperation occur. More and more often, as it is highlighted by managers in
conducted interviews, they are networking forms of cooperation which enhance the
effectiveness of taken actions, also for the benefit of sustainable growth. These forms of
aviation industry also include: technological networks, technological platforms, clusters,
scientific-industrial consortia, technological parks, associations, etc. The aviation
industry is a global market, hence, the networking structures in the aviation industry
supplement well the existing economic relations occurring in the chains of value
creation. Mutual relations between partners and entrepreneurial cooperation contribute
to generation of specified advantages in the social, economic and ecological zones
(Figure 1).
17th International Multidisciplinary Scientific GeoConference SGEM 2017

Figure 1. The impact of the aviation industry on social, environmental and economic
benefits

As it is illustrated in the picture above, in order to achieve the benefits arising from the
implementation of the concept of sustainable growth of aviation industry, it is necessary
that different entities take entrepreneurial actions targeted at integration and synergy of
these three subsystems. The aviation industry is an instance of the economic structure in
which very clear processes of commercialisation of technological knowledge are taking
place, for this reason, it is a practical exemplification of ongoing processes of
entrepreneurship. It results in, which is also noticed by the interviewed managers, the
growth of interest in investments concerning the research on pro-ecological innovations
in the scope of entrepreneurial actions, integrating the scientific, economic environment
and public sector, are of great importance. It is a proof of ecological awareness owned
by managers participating in the study. It also arises from an increasingly popular
conviction that taking initiatives in the scope of sustainable development can contribute
to an increase of reliability and, in consequence, to a growth in competitiveness of
enterprises. It is particularly important in the international and global market where
good business practises are highly regarded.

CONCLUSION
The conducted study confirmed the adopted assumption that entrepreneurship can
constitute an important mechanism contributing to the implementation of the concept of
sustainable development in the entities of aviation industry. The results achieved on the
www.sgem.org Environmental Economics

basis of desk research analysis and interviews with managers indicate that effective
entrepreneurial actions of entities from the aviation industry can generate specified
benefits, both of an economic, social and environmental nature. The interviewed
managers showed ecological awareness, which was visible in their opinions, approaches
and accepting pro-ecological challenges. The policy influencing the formation of
entrepreneurship consisting in the use of various methods, instruments, manners of
actions which can results in decisively higher number of ecological innovations in the
entire sector of aviation enterprises must also play an important role in this scope. In
order to enhance the effectiveness of actions in this field, it is necessary to establish
effective systems of innovation management in enterprises, create so-called innovation
partnerships between the public and private sector, undertake networking, improve
access to funding of scientific research and innovations in Europe.
Entrepreneurial actions in this scope require the enterprises to transform towards the
direction of sustainable management targeted at synergy of economic, social and
ecological aims. This creates conditions for development which is safe and beneficial
for a human, environment and economy which becomes a stimulator of progress and not
its brake. Sustainable development, for many enterprises, means new challenges and
necessity of orientation towards more responsible management.

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 17th International Multidisciplinary Scientific GeoConference SGEM 2017

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