The Jack Sparrow Revolution. A case study of how emerged piracy off the Somali coast has affected the shipping industry and its identified key actors

Bachelor Thesis from the year 2011 in the subject Economics - International Economic Relations, grade: G (Schweden), Linnaeus University (Economic), course: Business Administration, language: English, abstract: The objective with this thesis is to study and create a good understanding of the current piratical activities off the Somali coast and its influence on the shipping industry. By illuminating the increasing piracy problem, we have formulated a primary research question: 'How has the piracy in Somalia affected the behaviour of doing business for the shipping industry and its identified key actors?' In order to answer the primary research question we use a qualitative approach and conformed our research strategy through a case study design. Our theoretical frame of reference includes the stakeholder theory, which is important in order to identify the actors involved with this matter. Moreover, we use the value constellation theory and the institutional theory to be able to identify a structure of the the problem and its impacts. The empirical findings are a process of the data we have gathered from our interviewed respondents. It conducts on how they have been affected by the increasing piratical activities and how they believe the international shipping industry and trade has been affected. In our analysis we have linked the theoretical frame of reference with our empirical findings. We have enlightened how the different studied actors have been affected in accordance to: international trade, the direct effect of piracy, direct costs, challenges and opportunities that has occurred from this issue, and lastly changes of interactive behaviour among the studied actors. The thesis conclusions demonstrate that it has affected some of the identified actors, but especially the shipping industry. This through increase costs and re-routing, which have lead to delay in cargo. Furthermore, we can also conclude that the interactivities among the actors have increased and positively created constellations since many have realized that measurements needs to be done in order to decrease piracy off the Somali coast and secure today's international business.