Abstract
This study investigates the relationships between industry-specific institutions, industry structure, and industry performance. The Norwegian Pelagic value chain’s harvesting industry and its processing industry comprised the empirical context. The study findings reveal that the harvesters (the fishers), on average, achieved nearly twice the return on assets relative to the processors. Furthermore, the fishers’ cash flow margin was, on average, more than eight times higher, and their annual growth rate was approximately 70% above the corresponding figures of the processing industry. This study argues that the two industries’ performance differences are related to the variations in their institutional setups. The processing industry is subject to the general Norwegian business environment, whereas the fish harvesting industry benefits from a sector-specific framework that supports its relative competitiveness. The fishers have collectively established a legally supported sales organization, thereby strengthening their bargaining power, vis-à-vis the processors (buyers). The fishers’ rivalry is curbed by catch share regulations, and incumbent fishers are protected from intruders through entry barriers, for example, license requirements. Moreover, the processing industry’s potential threat to vertically integrate upstream into the fish harvesting industry is blocked through legislation. Finally, in contrast to the processing industry, the fish input cost is free for the harvesting industry. This study concludes that the fish harvesting industry has gained a sustained competitive advantage over the processing industry, based on a more supportive industry-specific institutional framework.
Highlights
Institutional force being consistent across industries is an implicit premise in the business strategy literature (Elango and Dhandapani, 2020); institutions are commonly defined as a nation-level construct
Subpoint a indicates that the processing industry’s competitive forces are more intense than those of the harvesting industry, as the economic result of the processing industry was a moderate average return on assets (ROA) of 4.0% during the 15-year study. This outcome is in stark contrast to the average of 7.0% in the harvesting industry, which indicates that the competitive forces in this industry are more agreeable
This study examined the relationships between industryspecific institutional frameworks, industry structures, and the performances of related industries in a disintegrated seafood value chain
Summary
Institutional force being consistent across industries is an implicit premise in the business strategy literature (Elango and Dhandapani, 2020); institutions are commonly defined as a nation-level construct. This premise could be valid for most industries in a seafood value chain, such as fish processing and fish exporting, as these industries are typically exposed to a free market-based institutional framework. This study examines whether industry-specific institutions have the potential to impact and cement profits in a specific. This study defines institutions as an industry-level construct. This study contributes to the broader discourse on the relationship between institutional contingencies, industry structure and dynamics, and industry outcomes (e.g., North, 1990; Peng, 2002; Porter, 2008; Peng et al, 2009; Chacar et al, 2010; Manikandan and Ramachandran, 2015)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
