Institutional and Resource-Based Management Implications from the Hanjin Shipping Collapse

The container shipping industry is one of the most significant players in the delivery of such goods and services. Strategic planning and management are becoming key considerations for the sustainability of the shipping industry. In an unfortunate turn of events, Hanjin Shipping Co., Ltd (HJS) was one of the biggest casualties, leading to its untimely collapse in August 2016. The collapse of HJS is a result of various factors from an institutional and resource-based perspectives. Consequently, in order to investigate and identify managerial implications uncovered by looking through these two respective lenses, it becomes evident that first we must understand what type of carrier was HJS and what caused the HJS bankruptcy. In this study, the history of Hanjin shipping is presented chronologically, while delineating the institutional influences and resource-based missteps.