The Jack Sparrow Revolution. A case study of how emerged piracy off the Somali coast has affected the shipping industry and its identified key actors

Bachelor Thesis , 2011 , 106 Pages , Grade: G (Schweden)

Economics - International Economic Relations

The objective with this thesis is to study and create a good understanding of the current piratical activities off the Somali coast and its influence on the shipping industry. By illuminating the increasing piracy problem, we have formulated a primary research question: ‘How has the piracy in Somalia affected the behaviour of doing business for the shipping industry and its identified key actors?’ In order to answer the primary research question we use a qualitative approach and conformed our research strategy through a case study design.

Our theoretical frame of reference includes the stakeholder theory, which is important in order to identify the actors involved with this matter. Moreover, we use the value constellation theory and the institutional theory to be able to identify a structure of the the problem and its impacts. The empirical findings are a process of the data we have gathered from our interviewed respondents. It conducts on how they have been affected by the increasing piratical activities and how they believe the international shipping industry and trade has been affected.

In our analysis we have linked the theoretical frame of reference with our empirical findings. We have enlightened how the different studied actors have been affected in accordance to: international trade, the direct effect of piracy, direct costs, challenges and opportunities that has occurred from this issue, and lastly changes of interactive behaviour among the studied actors.

The thesis conclusions demonstrate that it has affected some of the identified actors, but especially the shipping industry. This through increase costs and re-routing, which have lead to delay in cargo. Furthermore, we can also conclude that the interactivities among the actors have increased and positively created constellations since many have realized that measurements needs to be done in order to decrease piracy off the Somali coast and secure today’s international business.

Inhaltsverzeichnis (Table of Contents)

• 1 INTRODUCTION
  • 1.1 Background
  • 1.1.1 The Suez Canal
  • 1.1.2 Piracy
  • 1.1.3 Piracy in Somalia
  • 1.2 Problem Discussion
  • 1.3 Research Questions
    • 1.3.1 Subquestions
  • 1.4 Purpose
  • 1.5 Delimitations
• 2 METHODOLOGY
  • 2.1 Abductive Approach
  • 2.2 Qualitative Approach
  • 2.3 Research Strategy
    • 2.3.1 Designing Case Studies
    • 2.3.2 Strengths and limitations of a case study
  • 2.4 Data collection
    • 2.4.1 Semi structured interview
    • 2.4.2 The process of information selection
    • 2.4.3 Theoretical framework selection
    • 2.4.4 Access
  • 2.5 Reliability
  • 2.6 Validity
• 3 THEORETICAL FRAMEWORK
  • 3.1 Stakeholder theory
    • 3.1.1 Stakeholder analysis
    • 3.1.2 Stakeholder mapping
    • 3.1.3 Categorizing the approach
    • 3.1.4 A network theory of stakeholder influences
    • 3.1.5 Critics towards the stakeholder approach
  • 3.2 Value Constellations
    • 3.2.1 The strategy of Value Constellations
    • 3.2.2 Integration and co-produced value
    • 3.2.3 Relationships
    • 3.2.4 Different performance of business activities
    • 3.2.5 Critics towards the Value Chain and Value Constellations
  • 3.3 Institutional Theory
    • 3.3.1 Critics towards the institutional theory
  • 3.4 Theoretical synthesis
• 4 EMPIRICAL FINDINGS
  • 4.1 Related stakeholders towards The Shipping Industry
  • 4.2 Governments, Nations and Militaries
    • 4.2.1 International Trade
    • 4.2.2 Interactive behaviour and Piracy Impact
    • 4.2.3 Challenges and Opportunities
    • 4.2.3 Related Costs
  • 4.3 International Organizations
    • 4.3.1International Trade
    • 4.3.2 Interactive behaviour and Piracy Impact
    • 4.3.3 Challenges and Opportunities
    • 4.3.4 Related Costs
  • 4.4 The Insurance Industry
    • 4.4.1 International Trade
    • 4.4.2 Interactive behaviour and Piracy impact
    • 4.4.3 Challenges and Opportunities
    • 4.4.4 Related Costs
  • 4.5 The Logistic Industry
    • 4.5.1 International Trade
    • 4.5.2 Piracy Impact on the Actors

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to study and understand the current piracy activities off the Somali coast and their influence on the shipping industry. The primary research question seeks to investigate how this piracy has affected the conduct of business within the shipping industry and its key actors. To answer this question, the authors employ a qualitative approach and case study design. Here are the key themes explored in the thesis:

• The impact of Somali piracy on the shipping industry and its stakeholders.
• The role of stakeholder theory, value constellation theory, and institutional theory in understanding the piracy problem and its effects.
• The interactive behavior of key actors, including governments, international organizations, insurance companies, and logistics firms, in response to piracy.
• The challenges and opportunities presented by piracy for the shipping industry and its stakeholders.
• The direct and indirect costs associated with piracy for the shipping industry.

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction sets the stage by providing background information on the Suez Canal, piracy in general, and specifically, the rise of piracy off the Somali coast. The authors also outline the problem discussion, their research questions, the purpose of their study, and the limitations of their research.

Chapter 2 delves into the methodology employed by the authors, including their abductive approach, qualitative methodology, and case study research strategy. The chapter further discusses the data collection process, particularly the semi-structured interviews conducted with key actors, the theoretical framework used, and the reliability and validity of the research findings.

Chapter 3 presents the theoretical framework, exploring stakeholder theory, value constellations, and institutional theory. Each theory is analyzed in detail, including its strengths and criticisms. The chapter concludes with a synthesis of the theoretical framework, outlining how these theories are interconnected and contribute to the understanding of the research problem.

Chapter 4 presents the empirical findings of the research. The chapter examines the various stakeholders involved in the shipping industry, including governments, international organizations, insurance companies, and logistics firms. For each stakeholder group, the chapter analyzes their international trade, the impact of piracy on their behavior, the challenges and opportunities they face, and the associated costs.

Schlüsselwörter (Keywords)

This thesis focuses on the impact of Somali piracy on the shipping industry and its key actors. The primary keywords and topics include piracy, Somalia, international business, the shipping industry, stakeholder theory, value constellations, and institutional theory. The study examines the various challenges and opportunities presented by piracy, as well as the interactive behavior of key actors in the industry.

• College: Linnaeus University (Economic)
• Course: Business Administration
• Grade: G (Schweden)
• Authors: Emelie Lantz (Author), Marika Lövenbrant (Author), Suheila Farah (Author)
• Publication Year: 2011
• Pages: 106
• Catalog Number: V181122
• ISBN (eBook): 9783668697393
• ISBN (Book): 9783668697409
• Language: English
• Tags: jack, sparrow, revolution, somali