Strategic sources of superprofit in a well-regulated fishery

Bertheussen, Bernt Arne; Vassdal, Terje

doi:10.1016/j.marpol.2019.103551

Cited by 16 publications

(24 citation statements)

References 33 publications

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“…Thus, the most profitable strategic group kept on economizing with a larger share of the quota holding received for free as the ratio 3e/3d in Table 3 is 0.26 for exploiting vessels versus 0.35 for exploring and exploiting vessels. The findings are supported by Bertheussen and Vassdal (2019) and Junni et al (2013), but in contrast to the study by Auh and Menguc (2005), who examined the moderating role of competitive intensity on exploiting and exploring firms' economic performance.…”

Section: Vessel Performancementioning

confidence: 52%

“…Along this economic dimension, the exploring vessels performed significantly better over time, delivering on average 2.5% higher margin. The finding is in contrast to Bertheussen and Vassdal (2019) and Bertheussen et al (2020), and indicates that there can be economies of scale among the pelagic vessels in Norway.…”

Section: Vessel Performancementioning

confidence: 58%

“…These vessels did not explore new fisheries, and only modestly invested in quotas and vessel renewal. Accordingly, they carried out fishing traditional pelagic species with an older, and to a greater extent, down written and more or less debt-free vessel (Bertheussen and Vassdal, 2019). Nevertheless, their focused exploitation strategy turned out to be the most profitable over time (see 4a in Table 4).…”

Section: Resultsmentioning

confidence: 99%

“…Some vessel firms in the industry may have chosen not to buy additional quotas, and rather kept on economizing with quotas received for free (Bertheussen and Vassdal, 2019). One reason is that they may not have found it profitable to buy additional quotas in the market place in order to expand their business (Barney, 1986).…”

Section: Exploiting Existing Resources and Capabilitiesmentioning

confidence: 99%

“…Nevertheless, the relatively old boat, its fishing equipment, and crew are still capable of capturing the quota available. The vessels in this strategic group have expectedly gained a significant cost advantage relative to its peers (Bertheussen and Vassdal, 2019).…”

Section: Exploiting Existing Resources and Capabilitiesmentioning

confidence: 99%

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The Exploitation-Exploration Dilemma of Fishing Vessels With Institutionally Protected Quota Shares

Hannevig

Bertheussen

2020

Front. Mar. Sci.

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It is an established "truth" in the literature that a company which restricts itself to utilize existing resources without exploring new business opportunities is doomed to fail in the long run. An underlying premise for the claim is that the competition arena is dynamic and organized according to free competition principles. This study, however, examines whether it is more profitable for a fishing vessel to primarily exploit existing resources when the quota shares of the players are institutionally protected so that there is no real competition between them. The context is Norwegian seagoing purse seiners, which in 2005 experienced the introduction of a more market oriented individual transferable quota (ITQ) system with some distinct modifications. The vessels in the study were classified into strategic groups based on their exploitation versus exploration approaches. Financial accounts covering the period 2003-2017 were collected and analyzed to empirically address the issue. Some vessels did considerable explorative activities in the period studied by fishing related species, investing in quotas, and in new vessel technology. The findings suggest that firms which did not explore, but instead exploited their existing resource base performed relatively better than their peers except for EBITDA (earnings before interest, tax, depreciation and amortization) margin. Finally in the paper, the findings are discussed and implications outlined.

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Section: Vessel Performancementioning

confidence: 52%

Section: Vessel Performancementioning

confidence: 58%

Section: Resultsmentioning

confidence: 99%

Section: Exploiting Existing Resources and Capabilitiesmentioning

confidence: 99%

Section: Exploiting Existing Resources and Capabilitiesmentioning

confidence: 99%

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The Exploitation-Exploration Dilemma of Fishing Vessels With Institutionally Protected Quota Shares

Hannevig

Bertheussen

2020

Front. Mar. Sci.

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Dynamic capabilities and sustainability performance: Exploring the moderating role of environmental dynamism in the Norwegian fishing industry

Harun

Hogset

Mwesiumo

2023

Sustainable Development

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This study examines the effect of dynamic capabilities (DCs) on economic performance (ECOP), social performance (SOP), and environmental performance (ENVP) under different levels of environmental dynamism (EnvD). Based on preliminary interviews and survey data collected from Norwegian fishing firms, the analysis was conducted using partial least squares structural equation modeling and necessary conditions analysis. The results show that firms that acquire a set of DCs are more likely to improve their economic, social, and environmental sustainability performance. More so, firms' economic performance is a necessary condition for social performance, but not for ENVP. Interestingly, the results show that the effect of DCs on economic and environmental sustainability performance is even stronger when the level of EnvD is higher. However, EnvD does not have a significant effect on the relationship between DCs and social sustainability performance. Our findings provide guidance to managers on how and when to invest in and leverage DCs to improve sustainability performance in the food industry.

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Strategic investments in catch capacity and quotas: How costly is a mismatch for a firm?

2020

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Strategic sources of superprofit in a well-regulated fishery

Cited by 16 publications

References 33 publications

The Exploitation-Exploration Dilemma of Fishing Vessels With Institutionally Protected Quota Shares

The Exploitation-Exploration Dilemma of Fishing Vessels With Institutionally Protected Quota Shares

Dynamic capabilities and sustainability performance: Exploring the moderating role of environmental dynamism in the Norwegian fishing industry

Strategic investments in catch capacity and quotas: How costly is a mismatch for a firm?

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