Strategy Implementation in Icelandic Fisheries : Obstacles, key success factors and competitive advantages

Abstract

Strategy implementation is crucial for companies and organizations to utilize resources effectively and facilitate business results. The fishery industry is a major global sector that creates millions of jobs; globally, more than half a billion people earn their livelihoods from fishing. Fisheries also provide essential nutrition for people and serve as an important link in alleviating poverty and ensuring global food security. This doctoral thesis comprises four published academic articles examining strategy implementation in the Icelandic fishing industry, focusing on key success factors, obstacles, and competitive advantages. The thesis is situated within the broader landscape of strategic management, offering valuable insights into industry-specific conditions and strategic principles. The first article of this thesis is a systematic literature review. It exclusively analyzes empirical studies on strategy implementation. Articles two, three, and four are industry-focused case studies on the fisheries sector. These articles are drawn on both primary and secondary data. The first article of the thesis presents a comprehensive review of existing research on strategy implementation, synthesizing findings to generate new insights. The paper reviews 35 peer-reviewed articles published between 1980 and 2020. The aim is to highlight the main success factors and obstacles hindering strategy implementation while paying particular attention to existing literature gaps. The results indicate that previous research identified 16 obstacles and 18 success factors influencing strategy implementation. Furthermore, this brings forth certain dualistic factors showing that some obstacles can simultaneously be viewed as success factors and vice versa. The second article focuses on the challenges Icelandic fisheries face in implementing their strategy. The study aims to identify and understand the critical internal and external obstacles companies encounter during the strategy implementation process, as perceived by their Chief Executive Officers (CEOs). Through elite interviews with the CEOs of some of the largest fisheries companies in Iceland, the research uncovers several noteworthy findings. It reveals two previously identified internal obstacles, language barriers, and the complexities of managing a multicultural workforce. Additionally, the study identifies external obstacles not commonly documented in earlier research, including the absence of a clear governmental vision for the industry, confrontations with regulatory bodies, persistent changes in industry regulations, high levels of political uncertainty, time-consuming lobbying efforts, and often, unsupportive political and media discourse. These results have theoretical significance and deepen knowledge of strategy implementation by identifying and classifying internal and external obstacles that reduce the likelihood of successful implementation. These findings contribute to a better understanding of the fisheries challenges and provide valuable insights for policymakers and CEOs in the industry. The third article focuses on the key success factors necessary for efficient strategy implementation within the Icelandic fisheries industry. The article aims to classify and identify the main success factors that influence strategy implementation, with the secondary goal of evaluating the focus and importance of the United Nations’ Sustainable Development Goals (SDGs) for the Icelandic fisheries industry. The article is based on interviews with the CEOs of some of the largest fisheries in Iceland. The results indicated four important areas where strategy implementation can be improved: including all employees in the implementation process; promoting innovation and communication between employees and managers; aligning company policies with the United Nations’ SDGs; and implementing action plans with clear, measurable, and prioritized goals and timelines. The findings have a theoretical contribution as the study identifies success factors of strategy implementation, enriching existing literature through a conceptual framework. In addition to the study‘s theoretical contributions, the framework provides fisheries industry practitioners with actionable insights to enhance policy implementation, improving strategic alignment and organizational performance. The fourth article investigates factors contributing to competitive advantage in Icelandic fisheries. This study is based on interviews with CEOs of some of the largest fisheries in Iceland. The findings suggest a transition from a resource-based view to a market-based view that strengthens the companies competitive advantage in the industry. These changes, however, occur gradually due to obstacles such as a lack of expertise and experience necessary to navigate the consumer market, insufficient investment within the market, and restricted growth possibilities within the Individual Transferable Quota management system. The identified future competitive advantage integrates strengths from the resource-based view with a market perspective for the industry. The theoretical contribution of the study proposes a conceptual framework showing the prospective competitive advantage of the industry. This study offers actionable insights and recommendations for CEOs and stakeholders in Icelandic and international fisheries, highlighting a shift from a resource-based view to a market-based view while underscoring the importance of internal resource integration for sustaining competitiveness. An important overall contribution to the thesis is to introduce and propose a framework that outlines a five-phase approach to strategy implementation. The framework logic aligns with widely accepted principles of strategic management. It sequentially moves from creating enabling conditions (Phase 1) to defining strategy (Phase 2), preparing for execution (Phase 3), implementing strategy (Phase 4), and sustaining accountability through monitoring (Phase 5). In addition, the findings of this thesis identify the characteristics of a future fisheries company and propose a framework that leverages internal strengths, such as management expertise, access to fishing stocks, and sustainability emphasis, alongside market-based approaches to industry growth. While aiming to provide a comprehensive perspective on strategy implementation in the fisheries industry, special emphasis is placed on industry obstacles and on the important incentives that facilitate implementation. Additionally, the development of the industry's competitive advantage is evaluated from both resource-based theory and market-based perspectives. This thesis offers valuable insights for industries reliant on natural resources, highlighting the dynamic interplay between internal resources and external market forces in shaping competitiveness. The theoretical contribution of the thesis lies in strengthening and further developing the conceptual framework of strategy implementation, with particular emphasis on organizational and institutional theories. Additionally, it advances theoretical understanding by employing the lens of resource-based theory and the market-based perspective to evaluate competitive advantage within the industry. The integration of these four articles offers practical contributions to our understanding of strategy implementation and competitive advantages, particularly within resource-dependent industries. The thesis proposes frameworks and models bridging the theoretical knowledge gap and practical implementation, offering actionable insights for industry leaders and policymakers. Keywords: Strategy, implementation, key success factors, obstacles, fishery, CEOs, competitive advantage