SAILING THROUGH ROUGH WATERS - NAVIGATED BY KNOWLEDGE
The Master Thesis of Nicolai A. Kirkeng & Herman Ness 2010
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Agenda
• Background• Our study– Research question
• Propositions• Findings• Recommendations• Future research
Agenda
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Background
• The global competitive advantage of the Norwegian maritime industry– Norway has strong maritime cluster– Is it as strong in the challenge to develop into a
Global Maritime Knowledge Hub?• Norway has two ship owner centers: – Oslo and Bergen
Background
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Limitation of our scope
• Cluster limitations– Focusing on the knowledge intensive elements of the
cluster. Primarily with regards to the headquarter functions of the shipping companies.
• Global Knowledge Hub Index limitations– Focus on
• Cluster attractiveness• Talent attractiveness• Ownership attractiveness
– The linkages between the dimensions: • Cluster dynamics
Limitations
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Research question
“What are the characteristics of the Norwegian deep sea shipping clusters that can enable the creation of global maritime knowledge hubs – A comparative study of the Oslo and Bergen shipping clusters.”
Research Question
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Deep sea shipping
Oslo
Deep sea shipping Bergen
Primary case study
Comparative case study
Case study
Company Person
Wilh. Wilhelmsen Thomas Wilhelmsen
Tschudi Shipping Felix Tschudi
BW Group Sverre Prytz
IM Skaugen SE Morits Skaugen
Company Person
DnBNor Harald Serck-Hansen
Nordea Carl Erik Steen
Fearnley’s Jon-Aksel Torgersen
Vogt&Viig Ingar Fuglevåg
Wikborg Rein Gaute Gjelsten
Skuld Douglas Jacobsohn
Company Person
Grieg Group Eli Vassenden
Utkilen Bjørn Sjaastad
Odfjell SE Jan Hammer
Norske Skipsverft Birger Skaar
Financial & Legal services
Oslo
Case study
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Propositions
Cluster attractiveness
Talent Attractiveness
Ownership Attractiveness
P1
P2
P3
P4
Linkages
Performance
P5 a b c
Propositions
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More specialized service firms = higher performance
• Proposition 1: Ceteris paribus, the higher the degree of dedicated professional service firms, e.g. financial, legal and brokerage services, the higher the performance of the cluster.
Propositions
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Maritime financial and legal firms
2001 2002 2003 2004 2005 2006 2007 20080
100
200
300
400
500
600
700
800
900
Employees
Oslo
Bergen
Oslo Bergen kr -
kr 500
kr 1 000
kr 1 500
kr 2 000
kr 2 500
kr 3 000
Income
In m
illio
ns
Oslo*; 47 %
Bergen; 17 %
Rogaland; 8 %
Share of Norwegian maritime legal and financial services firms
Propositions
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• P2a: Ceteris paribus, the higher the availability of cluster specific labor pool, the higher the performance of the cluster
• P2b: Ceteris paribus, the higher the degree of labor mobility, the higher the performance of the cluster
Competent labor and labor mobility = higher performance
Propositions
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Secondary school
High school
Bachelor
Master
PhDSecondary school
High school
Bachelor
Master PhD
Secondary school
High school
Bachelor
Master
PhD Secondary school
High schoolBachelor
Master
Oslo BergenD
eep
Sea
Ship
ping
Lega
l and
fina
ncia
l ser
vice
sEducation
Propositions
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Diverse ownership types and FDI = higher performance
• P3a: Ceteris paribus, a more diverse set of ownership types will increase the performance of the cluster
• P3b: Ceteris paribus, the higher Foregin Direct Investment and the higher Foreign Facilitation Investment Globally by cluster members, the higher the performance of the cluster
Propositions
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More valuable linkages = higher performance
• P4: Ceteris paribus, the higher the degree of internal closure within the cluster and external brokerage outside the cluster, the higher the performance of the cluster.
HighDiverse group with diverse
external contactCohesive group with diverse external
contact (Maximum performance)
LowDiverse group with
homogenous external contactCohesive group with homogeneous
external contact
Low High
(Burt 2005:139)Closure within groupB
roke
rage
be
yon
d
gro
up
Propositions
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Cluster network in Bergen Cluster network in Oslo
The shipowners are the main link in and out ofthe cluster
All the industries have independent links out ofthe cluster.
Suggested network characteristicsPropositions
“Shipping is a information game that is why John Fredriksen still does business in Oslo, and that’s probably how Blystad could start playing the rig-market almost a year before the rest of the world” – Oslo representative
”It seems that the services firms are satisfied by serving the local ship owners” – Bergen representative
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Linkages moderate the effect of the different dimensions on performance
• P5a: Linkages moderate the relationship between dedicated professional service firms and the performance of the cluster. Dedicated professional service firms are more beneficial for performance for clusters characterized by high degrees of linkages.
• P5b: Linkages moderate the relationship between cluster specific competent labor pool and the performance of the cluster. Cluster specific competent labor pool is more beneficial for performance for clusters characterized by high degrees of linkages.
• P5c: Linkages moderate the relationship between diverse ownership and the performance of the cluster. Diverse ownership is more beneficial for performance for clusters characterized by high degrees of linkages.
Propositions
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Oslo distinguish itself with the highest potencial of becomming a GKH
• Mainly due to a more beneficial network structure and the mass of industries outside the cluster that strengthen the legal and financial services
• We have also seen– A wider set of specialized services– More educated worker pool– Higher degree of FDI, especially Foreign Facilitation
Investment Globally– More external brokerage, though less internal closure
Findings
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Findings
• The legal and financial services are an important part of the maritime cluster, and has a strong impact on the clusters performance
• Unstable policies on the national level is one of the strongest barriers to develop a GKH
Findings
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Potentials
Oslo – Maritime Services GKH• World class maritime
serices sector
Bergen – Niche center• High world-wide market
penetraction in selected segments
Findings
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Recommendations
• Shipping companies should outsource more of their activities to benefit from a stronger and healthier specialized service sector.
• The actors in the cluster should facilitate for more labor mobility
Recommendations
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Potential future research
• Whom is dependent of whom?– How does it effect the maritime services industry
that the Oslo ship owner community is declining?• Can they make it on their own?• Would there have been a different story 10-20 years
ago?
• Test our propositions
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Future research
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Thank you for your attention!
Q&A