Learning from Hanjin Shipping’s failure: A holistic interpretation on its causes and reasons

Dong-Wook Song, Young-Joon Seo, Dong-Wook Kwak

Research output: Contribution to journalArticle

1 Citation (Scopus)
9 Downloads (Pure)

Abstract

Recent years have observed that the world shipping industry is reflected by the developments of unprecedented dynamism, instability and uncertainty. These developments in the industry have led its stakeholders to take such a counter-balancing measure as merges and acquisitions, and more aggressive and bigger scaled alliance establishment. One of the most striking incidents happened in the shipping industry was the bankruptcy of Hanjin Shipping. More frightful is the fact that the process and speed of Hanjin's collapse was remarkably brief and short given the size and scale of the company. The Hanjin case is unique in a sense that the company had been grown in line with its nation's economic development, which was (and still is) made by the export-oriented economic policy: the late shipping company had been evolved as having moved the nation's wealth. This paper aims (i) to holistically examine what and why it was happened as it was, by reviewing available literature as a way to synthesise, (ii) to interpret intrinsic and extrinsic causes, and internal and external reasons by establishing an interpretative structural model, and (iii) to discuss provisional findings as a way to offer an implication to transport policy in general and shipping policy in particular. In doing so, this paper attempts to provide industrial stakeholders with an insight from the failure as a lesson to be learned.
Original languageEnglish
Pages (from-to)77-87
Number of pages11
JournalTransport Policy
Volume82
Early online date31 Dec 2018
DOIs
Publication statusPublished - Oct 2019

Fingerprint

shipping
Freight transportation
learning
interpretation
cause
Industry
industry
stakeholder
bankruptcy
dynamism
economic policy
Economics
structural model
Economic Policy
incident
economic development
acquisition
uncertainty
economics
policy

Bibliographical note

© 2017, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

Keywords

  • Bankruptcy
  • Hanjin
  • Interpretive structural model
  • Korea
  • Shipping policy

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Transportation

Cite this

Learning from Hanjin Shipping’s failure : A holistic interpretation on its causes and reasons. / Song, Dong-Wook; Seo, Young-Joon; Kwak, Dong-Wook.

In: Transport Policy, Vol. 82, 10.2019, p. 77-87.

Research output: Contribution to journalArticle

@article{c7c3eefeaced423fa89020d0d2a60393,
title = "Learning from Hanjin Shipping’s failure: A holistic interpretation on its causes and reasons",
abstract = "Recent years have observed that the world shipping industry is reflected by the developments of unprecedented dynamism, instability and uncertainty. These developments in the industry have led its stakeholders to take such a counter-balancing measure as merges and acquisitions, and more aggressive and bigger scaled alliance establishment. One of the most striking incidents happened in the shipping industry was the bankruptcy of Hanjin Shipping. More frightful is the fact that the process and speed of Hanjin's collapse was remarkably brief and short given the size and scale of the company. The Hanjin case is unique in a sense that the company had been grown in line with its nation's economic development, which was (and still is) made by the export-oriented economic policy: the late shipping company had been evolved as having moved the nation's wealth. This paper aims (i) to holistically examine what and why it was happened as it was, by reviewing available literature as a way to synthesise, (ii) to interpret intrinsic and extrinsic causes, and internal and external reasons by establishing an interpretative structural model, and (iii) to discuss provisional findings as a way to offer an implication to transport policy in general and shipping policy in particular. In doing so, this paper attempts to provide industrial stakeholders with an insight from the failure as a lesson to be learned.",
keywords = "Bankruptcy, Hanjin, Interpretive structural model, Korea, Shipping policy",
author = "Dong-Wook Song and Young-Joon Seo and Dong-Wook Kwak",
note = "{\circledC} 2017, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Copyright {\circledC} and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.",
year = "2019",
month = "10",
doi = "10.1016/j.tranpol.2018.12.015",
language = "English",
volume = "82",
pages = "77--87",
journal = "Transport Policy",
issn = "0967-070X",
publisher = "Elsevier",

}

TY - JOUR

T1 - Learning from Hanjin Shipping’s failure

T2 - A holistic interpretation on its causes and reasons

AU - Song, Dong-Wook

AU - Seo, Young-Joon

AU - Kwak, Dong-Wook

N1 - © 2017, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

PY - 2019/10

Y1 - 2019/10

N2 - Recent years have observed that the world shipping industry is reflected by the developments of unprecedented dynamism, instability and uncertainty. These developments in the industry have led its stakeholders to take such a counter-balancing measure as merges and acquisitions, and more aggressive and bigger scaled alliance establishment. One of the most striking incidents happened in the shipping industry was the bankruptcy of Hanjin Shipping. More frightful is the fact that the process and speed of Hanjin's collapse was remarkably brief and short given the size and scale of the company. The Hanjin case is unique in a sense that the company had been grown in line with its nation's economic development, which was (and still is) made by the export-oriented economic policy: the late shipping company had been evolved as having moved the nation's wealth. This paper aims (i) to holistically examine what and why it was happened as it was, by reviewing available literature as a way to synthesise, (ii) to interpret intrinsic and extrinsic causes, and internal and external reasons by establishing an interpretative structural model, and (iii) to discuss provisional findings as a way to offer an implication to transport policy in general and shipping policy in particular. In doing so, this paper attempts to provide industrial stakeholders with an insight from the failure as a lesson to be learned.

AB - Recent years have observed that the world shipping industry is reflected by the developments of unprecedented dynamism, instability and uncertainty. These developments in the industry have led its stakeholders to take such a counter-balancing measure as merges and acquisitions, and more aggressive and bigger scaled alliance establishment. One of the most striking incidents happened in the shipping industry was the bankruptcy of Hanjin Shipping. More frightful is the fact that the process and speed of Hanjin's collapse was remarkably brief and short given the size and scale of the company. The Hanjin case is unique in a sense that the company had been grown in line with its nation's economic development, which was (and still is) made by the export-oriented economic policy: the late shipping company had been evolved as having moved the nation's wealth. This paper aims (i) to holistically examine what and why it was happened as it was, by reviewing available literature as a way to synthesise, (ii) to interpret intrinsic and extrinsic causes, and internal and external reasons by establishing an interpretative structural model, and (iii) to discuss provisional findings as a way to offer an implication to transport policy in general and shipping policy in particular. In doing so, this paper attempts to provide industrial stakeholders with an insight from the failure as a lesson to be learned.

KW - Bankruptcy

KW - Hanjin

KW - Interpretive structural model

KW - Korea

KW - Shipping policy

UR - http://www.scopus.com/inward/record.url?scp=85071675953&partnerID=8YFLogxK

U2 - 10.1016/j.tranpol.2018.12.015

DO - 10.1016/j.tranpol.2018.12.015

M3 - Article

VL - 82

SP - 77

EP - 87

JO - Transport Policy

JF - Transport Policy

SN - 0967-070X

ER -