The Connecting Link between Organizational Incentive Theory and Sustainable Shipping Practices

Abstract

The objective of this master thesis is to identify the main drivers and barriers to effectively incentivize shipping companies in the Norwegian shipping sector to implement sustainable and circular economy practices. Our study is limited to the short sea and the offshore shipping segment in Norway. This thesis is grounded in theoretical literature, on sustainability and Circular Economy (Altuntaş Vural et al., 2021; Okumus et al., 2023; Geissdoerfer et al., 2017), internal drivers and barriers for implementing sustainable and circular solutions (Tang & Gekara, 2020; Chang & Danao, 2017, Yuen & Lim, 2016) and external drivers and barriers for sustainable and circular solutions (Tang & Gekara, 2020; Raza, 2020; Felício et al., 2021; Skovgaard, 2014). This thesis addresses four research questions, culminated into a four-step research model designed to examine the industry's perceptions on sustainability and circular economy, as well as identify internal and external incentives, and assess how these factors are prioritized. Ultimately, these findings provide insights on how to effectively incentivize sustainability practices. To answer these research questions, a semi-structured interview method will be employed, with ten respondents from six companies within the Norwegian shipping industry. The study categorizes both internal and external incentives, revealing key factors, such as laws and regulations, customers willingness to pay, public subsidy schemes, the alignment of incentives, the influence of top management, and organizational culture considerations as key elements to implement sustainability and circular economy practices. These findings offer valuable insights into potential strategies for increasing the focus on sustainability and circular economy within the Norwegian shipping industry. However, further research is needed to substantiate and statistically validate these results. This thesis contributes to the understanding of why companies adopt sustainable solutions, identifies the incentives that influence sustainable decision-making, and explores how this knowledge can be applied to encourage greater sustainability in practice.

The objective of this master thesis is to identify the main drivers and barriers to effectively incentivize shipping companies in the Norwegian shipping sector to implement sustainable and circular economy practices. Our study is limited to the short sea and the offshore shipping segment in Norway. This thesis is grounded in theoretical literature, on sustainability and Circular Economy (Altuntaş Vural et al., 2021; Okumus et al., 2023; Geissdoerfer et al., 2017), internal drivers and barriers for implementing sustainable and circular solutions (Tang & Gekara, 2020; Chang & Danao, 2017, Yuen & Lim, 2016) and external drivers and barriers for sustainable and circular solutions (Tang & Gekara, 2020; Raza, 2020; Felício et al., 2021; Skovgaard, 2014). This thesis addresses four research questions, culminated into a four-step research model designed to examine the industry's perceptions on sustainability and circular economy, as well as identify internal and external incentives, and assess how these factors are prioritized. Ultimately, these findings provide insights on how to effectively incentivize sustainability practices. To answer these research questions, a semi-structured interview method will be employed, with ten respondents from six companies within the Norwegian shipping industry. The study categorizes both internal and external incentives, revealing key factors, such as laws and regulations, customers willingness to pay, public subsidy schemes, the alignment of incentives, the influence of top management, and organizational culture considerations as key elements to implement sustainability and circular economy practices. These findings offer valuable insights into potential strategies for increasing the focus on sustainability and circular economy within the Norwegian shipping industry. However, further research is needed to substantiate and statistically validate these results. This thesis contributes to the understanding of why companies adopt sustainable solutions, identifies the incentives that influence sustainable decision-making, and explores how this knowledge can be applied to encourage greater sustainability in practice.