The performance effect of innovation in shipping companies

The aim of this study is to investigate how innovation contributes to company performance in Norwegian shipping and to extend our knowledge concerning what organizational and inter-organizational factors influence innovation in shipping firms. The study is based on a survey of 46 Norwegian shipping companies. We find that innovation contributes to firm performance. We also find that a conscious strategy, strategy involvement, external relationships, especially market relationships, and productivity slack have a significant positive effect on the degree of innovation. The results are dependent upon the companies' degree of differentiation and the type of innovation.     

Factors that promote innovation in shipping companies

This study seeks to identify factors that promote innovation in shipping companies. The study is based on an empirical investigation of 63 companies headquartered in Norway. The results imply that organizational and interorganizational variables are important to innovation. Three aspects of innovation are focused on: (1) service/product innovations, (2) market innovations, and (3) production method innovations. The explanatory variables that are applied in this study capture between 13–51% of the variability of the measures of innovation. The results indicate that an explicit strategy that promotes innovation is very important for the actual level of innovation within shipping companies. In management literature, it is often assumed that organic organizational features like decentralized decision-making promote innovation. The opposite features are assumed to restrain innovation. However, the results do not support these basic assumptions. For example, it seems to be important that managers make precise decisions in order to promote innovation.     

Factors that promote innovation in shipping companies

This study seeks to identify factors that promote innovation in shipping companies. The study is based on an empirical investigation of 63 companies headquartered in Norway. The results imply that organizational and interorganizational variables are important to innovation. Three aspects of innovation are focused on: (1) service/product innovations, (2) market innovations, and (3) production method innovations. The explanatory variables that are applied in this study capture between 13-51% of the variability of the measures of innovation. The results indicate that an explicit strategy that promotes innovation is very important for the actual level of innovation within shipping companies. In management literature, it is often assumed that organic organizational features like decentralized decision-making promote innovation. The opposite features are assumed to restrain innovation. However, the results do not support these basic assumptions. For example, it seems to be important that managers make precise decisions in order to promote innovation.     

Risk perception affecting the performance of shipping companies: the moderating effect of China and Korea

Risks in the shipping industry have been highlighted and have attracted significant attention, especially following the bankruptcy of Hanjin in 2017. Due to the decrease in container volume, the business environment for large shipping companies in China has deteriorated. Therefore, major large shipping companies have implemented mixed ownership reform, which provides more opportunities for large Korean shipping companies to enter the Chinese shipping industry. This study first identifies risk perception, specifically focusing on the moderating effect of Chinese and Korean shipping companies, and then demonstrates the impact of these risks on shipping company performance. The results show that market, operational, and technical risks have a negative influence on Chinese shipping companies, whereas market, policy, financial, operations, and technical risks have a negative influence on Korean shipping companies. This study contributes to the fundamental understanding of the effect of risk perception on performance among shipping companies in both countries and calls for further research on risk management plans based on the risk factors identified herein. On a practical level, this study provides an important reference for operators and investors who seek to enter strategic alliances or joint venture in Chinese shipping industry.     

Management control systems and performance: evidence from the Greek shipping industry

This study explores how Management Control Systems (MCS) enhance the performance of shipping companies. Based on data collected from semi-structured interviews, MCS are distinguished in three categories according to the purposes they fulfill: “Basic MCS” are implemented in order to set standards and support basic operations of the business, “Cost MCS” collect information about cost minimization while “External Information MCS” focus on compliance with the requirement of the cargo owners. Furthermore, evidence collected through a survey instrument addressed to shipping companies located in Greece suggests that the choice of MCS is contingent upon the strategy pursued by the shipping companies. Moreover, this paper tests whether shipping companies with an optimal fit between their strategies and their MCS experience superior business performance and a higher perceived usefulness of MCS. Results reinforce the notion that the performance of the shipping companies is contingent on the use of those control systems which are consistent with their strategies and a number of control variables such as experience of the person implemented the MCS, the size, and age of company.     

Causes and effects of FDI by the Norwegian maritime industry

This paper analyses foreign direct investments (FDI) in Asia by the Norwegian maritime industry. It focuses on three topics: (1) Why do Norwegian maritime companies invest abroad? (2) What are the effects of maritime foreign direct investments on the Norwegian maritime milieu? (3) What are the effects of these investments on the host country? By analysing specific Norwegian maritime companies, it was found that the FDIs have partly been induced by the instability of the Norwegian policy towards this sector. Several firms also point at the importance of being closer to the Asian market as a significant reason for FDI, and the Norwegian ship equipment industry tends to 'follow' the shipping companies abroad. The domestic effects of FDI are uncertain, and are likely to depend on the motivation behind the investments. Finally, using Singapore as an example, it is argued that the host country effects of FDI tend to be positive.     

Achieving an ASEAN single shipping market: shipping and logistics firms’ perspective

ABSTRACT

To establish an Association of Southeast Asian Nations (ASEAN) Single Shipping Market (ASSM) is an important part of ASEAN governments’ overall plan to achieve an ASEAN Economic Community by 2015. It is expected that a single shipping market will improve the region’s logistics performance and international competitiveness. To achieve this vision, however, the ASEAN countries need to remove any remaining barriers to logistics performance. In this light, the objective of this paper is to identify these barriers and assess their effects on the logistics performance of shipping and logistics firms based in ASEAN countries. Using a questionnaire-based survey, the study revealed several barriers affecting their logistics performance with varying significance among these countries. Unless these barriers from the perspective of the industry are removed, the ability of the shipping and logistics industry to benefit from a liberalized market would be limited. These perceived barriers are examined in detail and strategies to address them are proposed. The ASEAN experience is applicable to similar countries in the process of integrating their international shipping sector as well as contributes to the understanding of the different barriers and how these barriers can affect the logistics performance of shipping and logistics companies.     

Implementing the street-turn strategy by an optimization model

The street-turn option represents a major strategy for the profitability of shipping companies supplying container-based transportation. This option consists in the distribution of trucks delivering loaded containers to import customers, the subsequent allocation of empty containers to export customers and the final dispatch of loaded containers to departure ports. However, the determination of truck routes is a time-consuming activity for shipping companies, because available information can suddenly change while they are making their decisions. In this paper we aim to propose a decision support tool to quickly determine truck routes and implement the street-turn strategy. This tool is based on an optimization model determining the allocation of empty containers between customers and defining truck routes in a post-optimization phase. We compare routes resulting from the proposed model to the decisions of a real shipping company. Early results indicate that this approach represents a promising support for shipping companies in dealing with street-turns. It can significantly reduce distances travelled by trucks and times requested to determine routes.     

Green shipping management capability and firm performance in the container shipping industry

This study empirically identifies crucial green shipping management capability and examines its impact on firm performance using survey data collected from container shipping firms, including shipping companies and agencies. Exploratory and confirmatory factor analysis is performed to identify three critical green shipping management capability dimensions, namely, greener policy, greener ships, and greener suppliers. In this study, firm performance is categorized into environmental performance and financial performance. The results indicate that a greener policy has a direct and positive influence on both the greener ships and the greener suppliers factors. Greener ships and greener suppliers are found to have an indirect and positive influence on financial performance through environmental performance. Accordingly, this study suggests that container shipping managers could focus on organizational green shipping management capability, specifically regarding policies, ships, and suppliers, to improve their environmental and financial performance. The theoretical and practical implications of the findings for container shipping firms have been discussed.     

The human talent and its role in ISM Code effectiveness and competitiveness in the shipping industry

The present study empirically evaluates the role of human talent in the effective implementation of quality management systems in the shipping industry context. Specifically, we analyze the relationships among top management commitment to quality, ISM (International Safety Management) Code effectiveness and competitiveness as well as we assess the influence of talent in these associations. We test our research hypotheses using a sample of 199 shipping companies located in Greece. The findings show that ISM Code effectiveness acts as a mediator between top management commitment and shipping company competitiveness, while the different talent philosophies were found to moderate this relationship.     

The relative efficiency and financial risk assessment of shipping companies

Since shipping companies are highly competitive, we ask whether financial risk assessment tools impact company performance and, therefore competitiveness and efficiency. Stochastic Frontier Analysis (SFA) is used in the evaluation. Based on distinct features of the risk-return relationship, three cargo segments in the shipping industry are studied—dry bulk, liquid bulk, and containerized cargo. The influence of the risk assessment indicators on market and operational efficiency is subsequently determined using a panel regression to determine whether different asset allocation and risk management techniques improve the performance of shipping companies. In this analysis, 79 international shipping companies listed in Bloomberg Shipping Indices are included in the data collected from Thomson One for the period of 2001–2010. Efficiency estimation from the SFA shows that containerized cargo firms have better performance in both market and operating efficiencies. Operating efficiency performance is achieved by lowering liquidity. Market efficiency is improved by well-managed leverage level.     

从供应链管理看现代物流对我国航运业的影响

在海洋运输的基础上,全面介入物流服务,积极配合货主对运输服务更高层次的要求,以货主为中心全面提高门到门运输的服务水平,将给航运企业自身带来多方面的竞争优势。事实表明,从海洋运输向综合物流服务转变,已经成为国际航运企业发展的大方向。本文介绍了现代物流的供应链管理、“双赢”及“多赢”战略,以客户为中心等理念在航运业中的应用情况;结合大量的例子,从供应链管理角度分析我国航运存在的问题,并探讨解决问题的措施。     

The potential for British coastal shipping in a multimodal chain

A strategy to revitalize coastal shipping within Great Britain is investigated. An examination of the regulatory environment shows government, at both the EU and British levels, aware of the environmental benefits of coastal shipping compared to road freight transport, if only mildly supportive in tangible terms. The geography of Great Britain and the modern preference for just-in-time deliveries have severely restricted the ability of coastal shipping to compete effectively with road freight transport. The primary objective of the paper is to investigate whether coastal shipping could be integrated into a multimodal door-to-door supply chain, where it is currently hampered by high costs of transhipment, slow transport speeds, and the incongruity of load sizes between land and sea modes. Integration requires the co-operation of all organizations within the multi-modal supply chain. However, coastal shipping companies have been known to be individualistic and mistrusting of alliances. Therefore, a Delphi study is undertaken to investigate the standpoint of leading managers in such companies towards multimodal integration. The results of the Delphi study indicate that managers are in favour of multimodal developments, in particular cooperation between coastal shipping and road haulage. However, there was agreement that the business is highly competitive, and this may prevent the forms of collaboration required for multimodal systems. The secretive nature of the coastal shipping sector could impede joint marketing to promote a mode of transport that is often 'invisible' to shippers. There was little consensus on the relationship that should exist between coastal shipping and ports, a topic worthy of further investigation.     

Innovation,capabilities and competitive advantage in Norwegian shipping

As a high-cost country, it is believed that Norway has to build its competitiveness in most industries on innovation and knowledge-intensive products. The shipping industry is no exception. It has to be innovative in order to prosper. This unison conclusion, which has been drawn in several research projects during the last 10–20 years, is probably also applicable for companies in other high cost countries. A major issue in this research is how the industry can develop and maintain innovativeness and international competitiveness. The aim of this paper is to discuss the conclusion drawn in previous research concerning how the shipping industry can be innovative. It concludes that shipping companies have to improve their skills and competencies in a stronger interplay between organizations within and without the maritime cluster. This may increase their total capability and innovativeness and create distinctive competitive advantages that are difficult to imitate.     

Innovation, capabilities and competitive advantage in Norwegian shipping

As a high-cost country, it is believed that Norway has to build its competitiveness in most industries on innovation and knowledge-intensive products. The shipping industry is no exception. It has to be innovative in order to prosper. This unison conclusion, which has been drawn in several research projects during the last 10-20 years, is probably also applicable for companies in other high cost countries. A major issue in this research is how the industry can develop and maintain innovativeness and international competitiveness. The aim of this paper is to discuss the conclusion drawn in previous research concerning how the shipping industry can be innovative. It concludes that shipping companies have to improve their skills and competencies in a stronger interplay between organizations within and without the maritime cluster. This may increase their total capability and innovativeness and create distinctive competitive advantages that are difficult to imitate.     

An empirical assessment of ISM Code effectiveness on performance: the role of ISO certification

ABSTRACT

Although the introduction of the International Safety Management (ISM) Code aimed at increasing the safety standards in the maritime industry, several studies conducted so far argue for its inability to successfully fulfill its goals. The purpose of the current study is to evaluate the ISM Code effectiveness by drawing analogy from similar applications of ISO 9001 effectiveness in service companies. It also aims to determine its impact on firm performance and differentiate between ISO and non-ISO-certified shipping companies. Findings indicate that ISM Code effectiveness consists of two dimensions, namely continuous improvement and customer satisfaction focus, and the significance of its contribution on improving company performance is revealed, especially in the case of ISO-certified shipping companies. Moreover, the continuous improvement dimension was found to affect performance at a greater extent.     

The potential for British coastal shipping in a multimodal chain

A strategy to revitalize coastal shipping within Great Britain is investigated. An examination of the regulatory environment shows government, at both the EU and British levels, aware of the environmental benefits of coastal shipping compared to road freight transport, if only mildly supportive in tangible terms. The geography of Great Britain and the modern preference for just-in-time deliveries have severely restricted the ability of coastal shipping to compete effectively with road freight transport. The primary objective of the paper is to investigate whether coastal shipping could be integrated into a multimodal door-to-door supply chain, where it is currently hampered by high costs of transhipment, slow transport speeds, and the incongruity of load sizes between land and sea modes. Integration requires the co-operation of all organizations within the multi-modal supply chain. However, coastal shipping companies have been known to be individualistic and mistrusting of alliances. Therefore, a Delphi study is undertaken to investigate the standpoint of leading managers in such companies towards multimodal integration. The results of the Delphi study indicate that managers are in favour of multimodal developments, in particular cooperation between coastal shipping and road haulage. However, there was agreement that the business is highly competitive, and this may prevent the forms of collaboration required for multimodal systems. The secretive nature of the coastal shipping sector could impede joint marketing to promote a mode of transport that is often ‘invisible’ to shippers. There was little consensus on the relationship that should exist between coastal shipping and ports, a topic worthy of further investigation.     

Direct shipping across the Taiwan Strait: flag selections and policy issues

The restriction on direct shipping across the Taiwan Strait under which ships registered in Taiwan were banned from calling at China’s ports might have restricted the expansion of the Taiwanese flagged fleet. The cross-strait direct shipping link was established since the Cross-strait Sea Transport (CST) Agreement was signed in 2008. According to the Agreement, only ships owned and registered on either side of the Taiwan Strait or registered in Hong Kong may, with due approval, engage in direct cross-strait carriage of cargos and passengers. The aim of this study is to find the optimal flag selection for Taiwanese shipping companies under the provisions of the CST Agreement. The Fuzzy Analytic Hierarchy Process (FAHP) method is applied to find the preferred registry location among Taiwan, Hong Kong, and China. Sensitivity Analysis is also applied to test how criteria weights influence three alternative hierarchies. The results show Taiwan is the lowest priority with an unchangeable position in flag selection because Taiwanese national fleets mainly suffered higher operational costs. A lower tax rate and appropriate financial systems are therefore recommended in revising relevant shipping policies. Furthermore, to assist shipping companies to obtain China’s approval is also helpful to inspire ships flag back.     

航运电子市场精确定价

根据航运市场中影响定价的主要因素，提出了精确定价是在当今信息网络化和经济全球化的浪潮下，承运人最合适的定价形态，分析了精确定价及其条件．指出了在航运电子市场巾，承运人应从托运人的偏好、差异化的航运服务、单独付帐和避免托运人套利等4个方而对航运交易加以控制，从理论和实例2方面阐述了采用价格差异(精确定价)策略对承运人所带来的收益，在得出航运企业利润最大化条件的基础上，提出了承运人制定精确定价的5个步骤。从而为我国航运企业制订信息化及电子商务发展战略提供有益的参考。     

A cross-section analysis of stock returns: The case of shipping firms

This paper undertakes an analysis of the determinants of the cross-section of expected stock returns of 19 shipping companies listed in the US, Norway, Stockholm and London. Various factors, including company stock market beta, divided yield, and financial leverage have been identified in the finance literature as determinants of share price performance. We capitalize on these findings and add one more industry specific factor, the average age of the company's fleet, to quantitatively analyse the determinants of the performance of shipping shock returns. We use the Fama-MacBeth methodology to empirically test whether the five factors above have a significant effect on shipping stocks' performance. Our results indicate that the industry specific factor (the average age of the fleet) plus financial leverage, are significant in explaining shipping stocks' returns, wheras the stock market beta and the dividend yield are far less significant.