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Entry in the global liner shipping industry: a population ecology study, 1996--2006

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  • Pei-Xuan Lim
  • Shobha S. Das

Abstract

This study examines the global population of container liners and their trade route entry patterns from 1996 to 2006. Concepts from population ecology (population density, forces of legitimacy, competition and imitation, and the liability of smallness) are applied to empirically test the probability of entry by liners into a particular trade route. The findings show that entry into trade routes follows an inverted-U shaped (∩) relationship with the number of players operating in the trade route, increases with the number of trade routes operated by a player, and has a sharper inverted-U shaped relationship for Asian and North American firms. These findings, from the first comprehensive population level study of the liner shipping industry, provide insights into the strategic decision of entry into trade routes made by liner shipping firms during an 11-year period.

Suggested Citation

  • Pei-Xuan Lim & Shobha S. Das, 2009. "Entry in the global liner shipping industry: a population ecology study, 1996--2006," Maritime Policy & Management, Taylor & Francis Journals, vol. 36(3), pages 197-213, June.
    • Handle: RePEc:taf:marpmg:v:36:y:2009:i:3:p:197-213
    DOI: 10.1080/03088830902868131
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    Cited by:

    1. Peng, Wenhao & Bai, Xiwen, 2022. "Prospects for improving shipping companies’ profit margins by quantifying operational strategies and market focus approach through AIS data," Transport Policy, Elsevier, vol. 128(C), pages 138-152.
    2. Gadhia, Hitesh K. & Kotzab, Herbert & Prockl, Günter, 2011. "Levels of internationalization in the container shipping industry: an assessment of the port networks of the large container shipping companies," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1431-1442.

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