Papers presented by Sungshin Cho since 2019

2024 Providence, Rhode Island

"Independence and Interaction of Segments within an Industry: The Dynamism in Shipping Industry 1990 - 2020"

Abstract:

A company's strategy depends on which segment of an industry it chooses to enter. There have been many studies on cost advantage and differentiation advantage. Nevertheless, few studies have analyzed the relationship between each segment within the industry on a cross-sectional basis. Classifying the shipping industry into six segments, this study analyzes the factors that establish the segments within the industry and their relationship to each other. In the shipping industry, segments are also divided according to cargo but due to the "product" nature of transportation, there is overlap between segments, making the industry suitable for analyzing segment relationships within the industry. The research will cover the period from the 1990s, when the long-term recession in the shipping industry ended and the market competition began anew with the arrival of the shipping boom, to the present. This study shows the industry's dynamism across countries and regions as a unit of analysis for segments within the industry, by using the database published by an international shipping broker. Through these analyses, this study clarified the following contents. First, even in the shipping industry, which shares a common "product" of transportation, the top companies in each segment clearly differ, and the reason for this is that the specificity of each product forms an industrial barrier. Second, the locational advantages of firms vary by segment, and high specialization tends to lead to geographic concentration. Third, the shipping industry has become so fragmented that independent companies have begun to emerge and take on outsourcing, concentrating only on skills common to each segment and gaining global status. This study brings a new perspective to market and strategy selection by focusing on the interrelationships among industry segments, rather than viewing them only as independent of each other.

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2023 Detroit, MI, United States

"Reorganization of interfirm networks under globalization: Establishment of an international division of labor in the Japanese shipping industry"

Abstract:

The interfirm networks have long been an important discussion point in business history. Many studies point to the benefits of reducing transaction costs and the dominance of stable relationships. Nevertheless, interfirm networks underwent significant reorganization during the globalization era, but their dynamics have remained understudied. Using the case study of the Japanese shipping industry, this research demonstrates how stable interfirm networks were transformed at a global scale from the 1970 to the 2000. The Japanese shipping industry is an important case in the study of the global shipping industry, not only because it is highly competitive internationally, but also because it has developed cooperative relationships with firms from other countries. This phenomenon coincides with the gradual disintegration of traditional interfirm networks (Keiretsu) in various industries under globalization in Japan. Through analyzing the relationships of ship chartering companies obtained from Japanese shipping firms, as well as Japanese shipping cartel documents, this study demonstrates two main factors about the characteristics of Japanese shipping firms in transition and their market strategies. Firstly, geographical factors played a strong role. The economic environment of the partner country limits interfirm networks. Secondly, relationships with supporting industries were another key factor. This paper finds that changes in the strategies of supporting industries have a significant impact on the reoraganization of the division of labor within an industry. This study contributes to the understaning of a dynamic aspect of interfirm networks, whereas many studies of interfirm networks have emphasized the importance of stability.

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2022 Mexico City

"Japanese maritime cluster in the globalization and restructuring of the business groups"

Abstract:

As of 2019, the small city of Imabari, where 0.001% of Japan's population lives, owns 46% of Japan's ocean-going ships, equivalent to 5% of the world. This paper focuses on the period from 1973, when the global shipping recession hit, to 2000, when Imabari overcame the recession and laid the foundation for global competitiveness and clarify the historical background that made this growth possible. As for the shipping industry and maritime clusters, there have been diverse researches on Northern Europe and Greece, and the UK has been discussed from the perspective of the ability to respond to changes in the business environment, such as the emergence of the flag of convenience (FoC) and specialized ships like a container, and has been clarified the change of strategy and appropriate investment were needed in this era (Tenold:2019, Gelina:2015, Ronald:1990). In contrast, this global cluster in Japan has not been analyzed at all from the perspective of business history. In fact, Japanese companies also changed their style of investment, and the division of labor between ship owning and operating has advanced supported by the government. At that time, Imabari shipowners specialized in owning bulk ships which were the most useful for operators in any country. This paper analyzes structural changes in competition among major Japanese companies, which increased the importance of local economies, during the shipping recession, using Japanese government and corporate data. Furthermore, using previous research on Nordic shipowners, sources from corporate archives, and oral history by interviewing in Imabari, this paper shows the formation and self-reinforcing function of the maritime cluster. In the shipping industry, where boom and bust waves are fierce, maritime clusters can keep companies alive during recessions and allow them to continue investing even when their competitors are weaker.

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