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Chapter 1: INTRODUCTION: The Performance Effect of Innovation in Shipping Companies
Chapter 1: INTRODUCTION: The Performance Effect of Innovation in Shipping Companies
SHIPPING COMPANIES
Chapter 1: INTRODUCTION
Shipping industries and ports around the globe are currently facing
innovation, and identify new systems to reduce business cost. (Jenssen, 2007)
investments and processes for exploring new ideas and technologies, they often
have little if any ability to innovate the business models through which these
Management (RCM), which relates to the retrofitting of its ships to collect more
data from several sensors installed on its containers, turning the refrigerated
container into a digitally connected device which aims to eliminate waste and
improve cargo care. Simultaneously, MSC has joined CMA CGM for the
deployment of smart devices across the fleets of both carriers. On the other
hand, some port authorities do not even have a port management information
system (PMIS) nor a basic port community system (PCS) that facilitates and
carried by its commitment to shipping customer’s cargo in the safest and most
efficient manner. Last year, May 2017 the company implemented the use of
technology-based innovation.
satisfied the clients. This study generates insights on innovation strategies that
may help firms keep up with or stay ahead of the competition. in hopes of
and raise its competitiveness, the company needs to keep pace in a world
managing innovation which is the action of creating and capturing value from
3.1 Accuracy
3.2 Reliability
3.3 Timeliness
them to invest in new technologies, and take action of creating and capturing
their performance. Port authorities:who should take the lead and boost the
innovation process in their respective port clusters. Future
Grade: 90
REVIEW OF RELATED LITERATURE
Related Literature
to come up with new ideas to keep operations, products and services fresh.
products and augments the current products. One of work of (Crespi and
Zuniga, 2012) proves that firms that invest in knowledge are more able to
introduce new technological advances and those that innovate have greater
labor productivity than those that do not. However, (Kline and Rosenberg,
Balance Score Card. (Montgomery and Perry, 2011) introduced the Balance
financial outcomes.
The balanced scorecard uses four strategic perspectives, shown in Figure 1,
build a model of how the “intangible” factors – creativity, talent, new ideas,
a non-profit, donors see the benefit to others from their support of the
those who foot the bill. Internal management and staff (including
processes include the procedures for evaluating new ideas, testing them,
“perspiration”.
“inspiration” to bloom.
Impact of Innovation. Innovation may imply different meaning to people.
Experts define two main categories of innovation namely, Breakthrough and
Sustaining Innovation. (Day, 2017) defined Breakthrough Innovation as an
innovation from inside a company that pushes something to the next level. It is
innovation that opens the company to new markets or changes the way
customers interact with the market or the industry while (Noronha, 2016)
defined Sustaining Innovation as an incremental innovation that enables or
sustains an existing product. (Jenssen, 2010) stresses in his early study that
Shipping industry has to build its competitiveness in innovation in order to
prosper. One work by (Yang, 2010), proves that innovation had significant
positive effects on firm performance. Another study by (Jenssen, 2007)
maintains that innovation contributes to firm performance. On the other hand,
Innovation Foundation.
Montgomery, D., & Perry, G. S. (2011). Build Innovation into Your Strategy[PDF]. Cary, North Carolina
Day, J. (2018, August 20). Breakthrough Innovation or Disruptive Innovation. Retrieved November 14,
https://www.tandfonline.com/doi/abs/10.1080/13675567.2012.669469
https://www.quora.com/What-is-the-difference-between-a-sustaining-
innovation-and-a-disruptive-innovation
https://www.sciencedirect.com/science/article/abs/pii/S0305750X11001859