Impact of innovation on performance of shipping companies in Singapore

Singapore’s Transport and Storage Services Industry contributes approximately 9.0% of her GDP and employs over 129,700 people in more than 8,900 different establishments from various sectors. The Singapore Shipping Industry makes up 26.9% of Transport and Storage Services and accounts for the largest share of 24.0% of the sector’s total work force. This amplifies the importance of ensuring continuous and consistent improvements within the industry and innovation is one method of keeping the maritime industry ahead. Hence, an empirical study was conducted to investigate favourable factors and conditions for innovation and the impact of innovation on the performance of Singapore shipping companies. This report, in particular, exhibits one of three parts of findings from the study, pertaining to the influence of organisational and inter-organisational factors on innovation. This report explores the relationship between selected organisational and inter-organisational factors with four types of innovation: Product, Process, Marketing and Organisational. The organisational, inter-organisational and the innovation profiles of shipping companies are gathered through interviews and surveys conducted over the research period. The factorinnovation relationships are then analysed with the SPSS software. Statistical analysis deemed five out of eight factors in Singapore shipping companies favourable to innovation, particularly, Marketing Innovation. The research also identified Marketing Innovation as the most implemented type of innovation in Singapore shipping companies, possibly due to presence of favourable conditions and factors, and Marketing Innovation has had significant impact on shipping companies’ performance. These findings imply that management should ensure administration or creation of relevant favourable factors if there is intention to bring about innovation.Bachelor of Science (Maritime Studies