This paper contributes to the understanding of competition and industry evolution by analyzing how submarket dynamics and agency influence the development of the emerging industrial field of Danish offshore wind energy. We argue that industry evolution is sensitive to the balance between integration, overlap and disintegration across submarkets. This balance depends on how strategic intent and behavior influence submarket dynamics, leading to the conclusion that effects of agency and managerial intent should play a more prominent role in studies of industry evolution.
This article analyzes the competitive strategies of Odense Steel Shipyard between 1918 and 2012 and challenges existing scholarship on competition in global industries. Until the 1980s, the yard adopted typical strategies in shipbuilding, starting with cost leadership and subsequently adopting global segmentation and differentiation strategies. From the mid-1980s, however, it successfully followed a unique national responsiveness strategy, which scholars including Dong Sung Cho and Michael E. Porter had ruled out in shipbuilding. The article shows how shipyard owners shaped strategies and influenced competitiveness.
This paper examines if eco-rating schemes improve environmental outcomes in the context of the
international shipping industry. Shipping faces global environmental challenges and has recently
witnessed the introduction of several eco-rating schemes aiming to improve the environmental
performance of ships. Extending the private environmental governance literature into a mature
service industry with global operations, the paper shows that concerns about eco-rating schemes’
effectiveness also have relevance here. Shipping eco-rating schemes fall short of best practices for
design and governance, and this hampers improvement efforts. The study has policy implications for
the achievement of improved environmental outcomes in the shipping industry.
This paper examines if eco-rating schemes improve environmental outcomes in the context of the international shipping industry. Shipping faces global environmental challenges and has recently witnessed the introduction of several eco-rating schemes aiming to improve the environmental performance of ships. Extending the private environmental governance literature into a mature service industry with global operations, the paper shows that concerns about eco-rating schemes’ effectiveness also have relevance here. Shipping eco-rating schemes fall short of best practices for design and governance, and this hampers improvement efforts. The study has policy implications for the achievement of improved environmental outcomes in the shipping industry.
In this article, we examine the relations between global value chain governance and environmental upgrading in maritime shipping. Drawing from interviews with global shipping companies and major buyers of shipping services (cargo-owners), we reveal the key issues and challenges faced in improving the environmental performance of maritime transportation. Contributing to the Global Value Chain (GVC) literature, we compare and analyze the influence of three main external drivers on environmental upgrading in the tanker, bulk and container shipping segments: regulation, cooperation and buyer demands. Our findings suggest that environmental upgrading is more likely to occur when global value chains are characterized by unipolar governance and where the lead firms are consumer-facing companies with reputational risks. Furthermore, environmental upgrading in shipping is not likely to materialize without clear and enforceable global regulation and stronger alignment between regulation and voluntary sustainability initiatives.
Ports are crucial hubs in the functioning of the global economy, and maritime transport is a major emitter of air pollutants. Ports have considerable potential for promoting environmental upgrading in maritime transport and along global value chains more generally, but so far have been only partially successful in doing so. We examine results, limitations and future potential of voluntary initiatives that have been carried out by selected European and North American port authorities, which are considered frontrunners in environmental management. Drawing from the insights of global value chain analysis and organizational theory, we find that low ‘tool implementation complexity’ and high ‘issue visibility’ concerning emissions are key facilitators of environmental upgrading. We suggest that ports can intervene in two main ways to improve the environmental performance of maritime transport beyond their organizational and physical boundaries: by lowering tool implementation complexity through stronger collaboration within global value chains; and by enhancing emission visibility through alliances with cargo-owners and regulators.
Exploring how transnational environmental governance and the operation of global value chains (GVCs) intersect is key in explaining the circumstances under which mandatory disclosure can improve the environmental footprint of business operations. We investigate how the governance dynamics of the tanker shipping value chain (a major emitter of greenhouse gases) limits the effectiveness of the European Union (EU) monitoring, reporting, and verification (MRV) regulation, which mandates the disclosure of greenhouse gas emissions for ships calling at EU ports. Although MRV seeks to help shipowners and ship managers save fuel and reduce emissions, it does not address the complexity of power relations along the tanker shipping value chain and currently cannot disentangle how different actors influence the design, operational, commercial, and ocean/weather factors that together determine fuel consumption. In particular, the EU MRV neglects to reflect on how oil majors exert their power and impose their commercial priorities on other actors, and thus co-determine fuel use levels. We conclude that, in its current form, the EU MRV is unlikely to lead to significant environmental upgrading in tanker shipping. More generally, we argue that regulators seeking to facilitate environmental upgrading need to expand their focus beyond the unwanted behaviors of producers of goods and providers of services to also address the incentive structures and demands placed on them by global buyers.
The abatement of greenhouse gas emissions represents a major global challenge and an important topic for transportation research. Several studies have argued that energy efficiency measures for virtual arrival and associated reduced anchorage time can significantly reduce emissions from ships by allowing for speed reduction on passage. However, virtual arrival is uncommon in shipping. In this paper, we examine the causes for waiting time for ships at anchor and the limited uptake of virtual arrival. We show the difficulties associated with the implementation of virtual arrival and explain why shipping is unlikely to achieve the related abatement potential as assumed by previous studies. Combining onboard observations with seafarers and interviews with both sea-staff and shore-based operational personnel we show how charterers’ commercial priorities outweigh the fuel saving benefits associated with virtual arrival. Moreover, we demonstrate how virtual arrival systems have unintended, negative consequences for seafarers in the form of fatigue. Our findings have implications for the IMO’s greenhouse gas abatement goals.
Waiting times for trucks, trains, airplanes and ships in service represent apparent transport system inefficiencies, and measures to reduce these may have the potential to abate transport GHG emissions. In international shipping, transportation researchers have pointed out that reduced waiting time in association with port calls holds such promise. We explore the potential for GHG abatement through port call optimization, focusing on crews and their employers - the shipping companies. Adding new empirical evidence to the transportation literature, we confirm the existence of idle time during port calls, and go beyond this in describing the causes for it. We show how several port stakeholders, including government officials, limit the crews’ and shipping companies’ room for maneuver in relation to port calls. We also show why the process of reducing waiting time in shipping is more complex than that for onshore transport modes, where real-time traffic information guides drivers’ route choices, and reduces congestion and waiting time. Our findings have implications for both policy makers and transportation research.
Profitable energy saving measures are often not fully implemented in shipping, causing energy efficiency gaps. The paper identifies energy efficiency gaps in ship operations, and explores their causes. Lack of information on energy efficiency, lack of energy training at sea and onshore and lack of time to produce and provide reliable energy efficiency information cause energy efficiency gaps. The paper brings together the energy efficiency and ship management literatures, demonstrating how ship management models influence energy efficiency in ship operations. Achieving energy efficiency in ship operations is particularly challenging under third party ship management. Finally, the paper discusses management implications for shipping companies, which outsource ship management to third parties.