Organisational growth and firm performance in the international container shipping industry

Y. H.Venus Lun, King Wah Pang, Photis M. Panayides

Research output: Journal article publicationJournal articleAcademic researchpeer-review

37 Citations (Scopus)


Firms buy factor inputs in the factor market and sell value-added outputs to customers in the product market. Firms also engage in economic exchanges along and across the value chain. The combination of these value-adding and exchange functions determine a firm's performance. This paper examines how the factor and product markets are related to organisational capacity and firm performance in the container shipping industry. The findings revealed that the price on the product market is positively related to the production capacity of the industry. This study also illustrates the relationship between firm size and level of vertical expansion for carriers to own ships rather than charter ships from the factor market. A regression equation model is developed to predict the level of ordering new ships by ocean carriers. This study tests the relationship between organisational capacity and firm performance, shedding light on the profitability of ocean carriers.
Original languageEnglish
Pages (from-to)206-223
Number of pages18
JournalInternational Journal of Shipping and Transport Logistics
Issue number2
Publication statusPublished - 1 Dec 2010


  • Container shipping
  • Factor market
  • Firm performance
  • Growth of firm
  • Organisational capacity
  • Product market

ASJC Scopus subject areas

  • Business and International Management
  • Transportation
  • Management Science and Operations Research
  • Management of Technology and Innovation


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