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.
• 5 ANALYSIS
  • 5.1 The Shipping Industry
  • 5.2 Governments, Nations and Militaries
  • 5.3 International Organizations
  • 5.4 The Insurance Industry
  • 5.5 The Logistic Industry
• 6 DISCUSSION
  • 6.1 The Shipping Industry
  • 6.2 Governments, Nations and Militaries
  • 6.3 International Organizations
  • 6.4 The Insurance Industry
  • 6.5 The Logistic Industry
• 7 CONCLUSION
• 8 BIBLIOGRAPHY

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to investigate the impact of piracy off the Somali coast on the shipping industry and its key actors. It seeks to understand how this phenomenon has affected business practices and the behavior of various stakeholders involved in international trade.

• The impact of Somali piracy on international trade and the shipping industry.
• The role of key actors, including governments, international organizations, insurance companies, and logistics providers, in addressing the piracy problem.
• The challenges and opportunities presented by piracy for different stakeholders.
• The evolving dynamics and interrelationships among stakeholders in response to the piracy threat.
• The effectiveness of various strategies and measures implemented to combat piracy.

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction provides a comprehensive overview of the research topic, outlining the background of piracy in Somalia and its impact on the shipping industry. It also defines the research questions and objectives of the study.

The methodology chapter details the research approach, strategy, and data collection methods employed in the thesis. It discusses the use of a qualitative approach, case study design, and semi-structured interviews to gather data from key stakeholders.

The theoretical framework chapter presents the key theoretical concepts that underpin the study, including stakeholder theory, value constellation theory, and institutional theory. These theories provide a framework for understanding the complex relationships and interactions among stakeholders involved in the piracy issue.

The empirical findings chapter presents the data collected through interviews with key stakeholders, including governments, international organizations, insurance companies, and logistics providers. It analyzes the impact of piracy on their operations, challenges, opportunities, and interactive behavior.

The analysis chapter synthesizes the empirical findings and theoretical framework to provide a deeper understanding of the impact of Somali piracy on the shipping industry and its key actors. It examines the specific challenges and opportunities faced by each stakeholder group and the evolving dynamics of their relationships.

The discussion chapter critically evaluates the findings and their implications for the shipping industry and international trade. It explores the effectiveness of existing strategies to combat piracy and suggests potential solutions for mitigating the risks associated with this phenomenon.

Schlüsselwörter (Keywords)

The keywords and focus themes of the text include piracy, Somalia, international business, the shipping industry, stakeholder theory, value constellation, and institutional theory. The thesis examines the impact of Somali piracy on the shipping industry, analyzing the behavior of key actors, challenges, opportunities, and the evolving dynamics of their relationships. It explores the effectiveness of various strategies and measures implemented to combat piracy and suggests potential solutions for mitigating the risks associated with this phenomenon.

• 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