Factors affecting technological innovation in shipping industry.

Abstract

Shipping industry can be considered as the oldest global industry; its technological innovation evolves throughout its history and developing rapidly in recent years. As it has been exposed to the competitive environment, this project will study competition as a factor affecting technological innovation in shipping industry, especially from the perspective of shipowners. Even though most shipping companies do not have R&D department, they are the ultimate decision maker on adopting of technological innovation; their competition influences the competition of players in other sectors such as shipyards and equipments makers which also result in technological innovation.

The objective of this project has is to study how competition, as an inter-organizational-level variable that affects technological innovation in shipping industry and to highlight the theoretical and practical implications of technology innovation on shipping companies' operation. Literature concerning innovation of technologies on company operation was reviewed. Primary research was carried out by conducting 43 surveys and 22 interviews of shipping companies based in Singapore.

Due to the unique characteristics of shipping industry, shipowners are conservative towards technological innovation, cost efficiency remains their main objective of technological innovation and other considerations include safety standards and regulations compliance. Besides, there are other approaches adopted by shipowners to enhance their “soft values” to gain competitiveness.