Impact of the Fit for 55 Package on EU Maritime Supply Chain Management: A Study of Environmental Regulations

Introduction

Background of Study

Concerns about global warming and environmental sustainability have the potential to affect the economic health of most industries. From a policy perspective, authorities have introduced new regulations to streamline corporate operations in line with environmental sustainability goals, aiming to minimize economic losses that may arise from compliance with these new policy guidelines (Nyhus, 2020). However, the implications of such changes are yet to be understood in today’s uncertain global economy.

In relation to these concerns, the present research will examine the implications of the “Fit for 55 Package”, a set of new regulations aimed at reducing the environmental impact of the maritime shipping sector (Council of the European Union, 2021). The law seeks to introduce changes to the operations of crude oil companies, including providing additional support for renewable energy and carbon trade-offs, as measures aimed at improving compliance with new regulations.

Problem Statement

Current global economic uncertainties, including the high cost of living, inflation, and geopolitical instability in the European Union (EU), are likely to impact the commitment of EU member countries to adhere to the goals of the “Fit for 55 Package”. At the same time, it is unclear how the effects of the increase in the global oil price, which economic embargoes and sanctions on Russia have occasioned, will impact the EU energy sector.

This concern is further rooted in a deeper unease about the world’s increasing dependence on fossil fuels to power modern economies. Overall, it is unclear whether the objectives of the “Fit for 55 Package” will be achieved under current uncertainties affecting the European maritime shipping industry and the global economy. Additionally, it is unclear whether the introduction of the “Fit for 55 Package” laws will influence the compliance levels of shipping companies with existing environmental laws and policies. The present research will explore these areas of the probe by fulfilling the aims and objectives outlined below.

Research Aim and Objectives

The purpose of this research is to investigate how the “Fit for 55 Package” influences the SCM activities of crude oil tankers in the European Union, guided by four central objectives:

1. To determine how the quest for justice and social fairness in the “Fit for 55 Package” impacts efficiency in the EU maritime sector.
2. To interrogate the extent to which the “Fit for 55 Package” will impact innovation and competitiveness in the EU maritime sector.
3. To find out ways that the “Fit for 55 Package” will impact transportation capacity utilization in the EU maritime sector.

Research Questions

The following research questions are based on the works of researchers, such as Rodriguez (2022) and Bui et al. (2021), who have investigated factors affecting the economic implications of the shipping industry on its stakeholders. They suggest that legislative changes affect the efficiency, competitiveness, and operational capacity of different players in the maritime industry (Rodriguez, 2022; Bui et al., 2021). The research questions highlighted below are developed from their works and seek to understand the impact of the “Fit for 55 Package” on the SCM activities of crude oil tankers.

1. How will the quest for justice and social fairness in the “Fit for 55 Package “impact efficiency in the SCM activities of crude oil tankers?
2. To what extent will the “Fit For 55 Package “impact innovation and competitiveness in the SCM activities of crude oil tankers?
3. In what ways will the “Fit for 55 Package “impact transportation capacity utilization in the SCM activities of crude oil tankers?

Hypotheses

Based on preliminary research works done by experts, such as SINAY SAS (2021) and Bui et al. (2021) in the maritime shipping industry, the following hypotheses will be tested.

• H1. The quest for justice and social fairness in the “Fit for 55 Package “impact will negate the efficiency of SCM activities in the EU maritime sector.
• H2. The “Fit for 55 Package” will positively impact innovation and competitiveness in the management of SCM activities in the EU maritime sector.
• H3. The “Fit for 55 Package “will increase transportation capacity utilization in the SCM activities of the EU maritime sector.

Importance of Study

The maritime shipping industry is an important contributor to the Gross Domestic Product (GDP) of the EU and a significant source of employment for about 1.5 million people (SINAY SAS, 2021). These workers are employed in various industries, including shipbuilding, naval architecture, engineering, and electronics, among others (Council of the European Union, 2021). The findings of this study will be similarly instrumental in improving the sustainability record of the EU shipping industry. This goal will be achieved by helping managers to better understand the impact of future environmental regulations on their operations. This way, they can better plan for their SCM activities, thereby reducing legal and economic indecisiveness that often leads to cost increments.

Organization of Study

This document comprises five chapters, each representing a distinct stage of the research process. The first one is the introductory section, which provides a background of the study and sets the tone for the investigation. It highlights key parts of the probe, including the research problem, its significance, and its purpose. The second chapter of the investigation is the literature review section, which provides an overview of the current state of scholarly research on the study area. The third section of the paper is the methodology section, which highlights the techniques the researcher employs to answer the research questions. This section of the document also contains information related to the research design, approach, philosophy, data collection, and data analysis techniques employed by the investigator. The fourth chapter represents the findings of the investigation, while the fifth section of this document is the conclusion chapter. This section of the document provides a summary of the main findings and a discussion of how the analysis objectives were met and the research questions answered.

Literature Review

Introduction

This chapter highlights the state of scholarly research on the selected topic of study. To recap, this investigation aims to question the effect of the “Fit for 55 Package” on the SCM processes and operations of crude oil tankers in the EU. The inquiry is guided by four key objectives, which strive to prognose the consequences of the latest environmental regulations for the efficiency, competitiveness, innovativeness, and ability of crude oil transporters to comply with environmental laws pertaining to the industry.

Theoretical Foundation

The stakeholder theory is the preferred theoretical foundation for the present study. It provides a reliable model for unpacking the contents of the present research, as it enables business leaders to maximize stakeholder value without compromising environmental gains through trade-offs and negotiations (Freeman, 2018). Proponents of stakeholder theory believe that successful corporations are those that align their stakeholders’ interests with corporate interests (Gaonkar & Chetty, 2020).

The theory also recognizes the role that interconnected relationships in business play in affecting industry operations. In the context of this analysis, these relationships are vital in understanding the motivations of shipping companies to adhere to new environmental regulations (Gaonkar & Chetty, 2020). Furthermore, the introduction of new environmental regulations in business operations signifies a response to the concerns of environmentalists who form a key stakeholder group in the corporate sector.

Key stakeholders in international business include employees, customers, communities, local governments, and suppliers. The stakeholder theory emphasizes the importance of creating value for all parties involved in a business relationship. It has widespread application in the fields of business ethics, policy development, marketing, and education (Freeman, 2018). Researchers equally affirm its application in the maritime and shipping sector (Rodriguez, 2022; Bui et al., 2021).

Recognizing the need to include all stakeholders in policy development has transformed how institutions and organizations operate. From a policy perspective, environmentalists have established themselves as an important stakeholder group in business, representing the interests of “nature” within the business context (Gaonkar & Chetty, 2020). The stakeholder theory framework adapted for this study serves as the basis for developing new scholarly works in the fields of global commerce and business management. Figure 2.1 below illustrates the relationship between different interconnected groups within stakeholder theory.

The justification for using stakeholder theory as the primary conceptual framework for this paper is grounded in the understanding that most corporate strategies and activities are embedded in relational networks (United Nations Secretariat, 2022). Therefore, the basic idea underpinning this theory is that wide groups of constituents need to be consulted when developing corporate decisions or laws.

Collaborating through stakeholder theory has yielded significant benefits for business professionals. However, some participants have reported several challenges in managing the expectations of stakeholders involved in operational management processes (Gaonkar & Chetty, 2020). For example, some scholars have highlighted the difficulty in aligning business with environmental goals as one of the main challenges to policy implementation (Freeman, 2018).

The failure of businesses to maintain clear lines of communication with their stakeholders has also been identified as a challenge affecting the implementation of CSR initiatives in corporate circles (Council of the European Union, 2021). An overriding lack of awareness or concern about stakeholder activities also threatens the viability of associated programs and the willingness of companies to comply with new environmental laws. The lack of consensus among the parties involved is equally a challenge affecting the realization of collaborative synergies in policy development (United Nations Secretariat, 2022). Several CSR initiatives have slowed down due to these reasons.

Impact of Commercial Operations on the Environment

Global warming, climate change, and sustainability are key concepts that influence business operations worldwide. They have also been widely discussed in academic, political, and economic articles due to their potential impact on businesses and people’s livelihoods (Rodriguez, 2022; Bui et al., 2021; Ingpen, 2022). Due to global climate agreements, such as the UN Charter on Sustainable Development, governments around the world are under pressure to reduce their environmental impacts by championing the transformation of industrial processes through the use of cleaner energy and the adoption of waste reduction initiatives (United Nations Secretariat, 2022). These concerns stem from scientific research, which indicates that our social and economic policies governing production are unsustainable as a planet (Kowalewski, 2021). Therefore, the negative effects of climate change could be extensive if ambitious actions to minimize the commercial operations of industries are not developed.

Part of the environmental concerns associated with the economic activities of industries has been spearheaded by the research findings of independent government and intergovernmental agencies on the future impact of climate change on the planet (Ingpen, 2022). A report by the environmental agency “United in Science” highlights the increase in greenhouse gas emissions resulting from a corresponding rise in the demand and use of crude oil (United Nations Secretariat, 2022).

Today, studies indicate that greenhouse gas levels have returned to pre-pandemic levels after temporarily decreasing during the lockdowns (Ingpen, 2022). Based on these findings, it is estimated that firms must increase their commitment to reducing greenhouse gases by at least seven times to achieve the goals of the 2015 Paris Agreement, which aims to lower greenhouse gases by 1.5 °C (United Nations Secretariat, 2022). Concerns are rife that if nothing is done, a tipping point in the climate change debate could be reached with devastating effects on humanity.

Cities are significant points of greenhouse gas emissions that have attracted the interest of environmentalists and industries alike due to their extensive resource use. Collectively, they account for up to 70% of the planet’s greenhouse gases (United Nations Secretariat, 2022). The most vulnerable populations worldwide are expected to bear the brunt of these pollutants. The disproportionate effects of global warming on vulnerable populations outline the negative effects of climate change on human life (Kowalewski, 2021). Indeed, extreme weather experienced in some parts of the world equally draws attention to the fact that the effects of climate change are with us.

The shipping industry is among the world’s biggest emitters of greenhouse gases. Its ecological footprint is partly due to the fact that about 90% of the world’s goods are transported via sea (UK Research and Innovation Centre, 2021). Due to its pivotal role in global commerce, the maritime sector is responsible for approximately 940 million tons of greenhouse gases emitted into the atmosphere annually (Bui et al., 2021).

Regionally, the extensive environmental blueprint of the industry stems from the pivotal role played by the maritime industry in supporting the EU economy. For example, it is estimated that approximately 75% of the continent’s external trade volume is transported by sea (Ingpen, 2022). Shipping channels in the EU also form a significant part of the wider global international trading network. Figure 2.2 below illustrates the major crude oil routes utilized by shipping companies worldwide.

Based on an expansion of shipping networks around the world, concerns that the environmental impact of the maritime industry will worsen are growing. This anxiety stems from the development of shipping channels worldwide as economies expand their global trade linkages (Ingpen, 2022). The transportation of crude oil has become a significant part of the global trade volume. The importance of the energy sector to the operations of various economic sectors has further elevated the importance of this industry to global commerce (Rodriguez, 2022; Bui et al., 2021). Recent increases in oil prices, stemming from the territorial war between Ukraine and Russia, have also drawn the world’s attention to the importance of the energy sector in supporting human enterprise.

Crude oil tankers play a central role in the functioning of the maritime industry. They carry liquid cargo in tanks and are responsible for transporting oil from their production sources to refinery points or to designated central hubs for further processing, which is then transported through pipelines (Ingpen, 2022). Despite the economic importance of the crude oil industry to the global economy, the industry also attracts significant political interest (UK Research and Innovation Centre, 2021). This is due to negotiations made by governments to secure trade routes and other assets of maritime importance.

Recently, stakeholders have introduced programs aimed at reducing the volume of greenhouse gases in the industry. Currently, major firms in this sector have committed to reducing the industry’s greenhouse gas emissions by 50% by 2050 (UK Research and Innovation Centre, 2021). Space technology and the development of efficient engines are some strategies adopted by large shipping companies to minimize their environmental footprint (Ingpen, 2022). Ship vessel designs have been correspondingly transformed to increase their performance and reduce energy usage. For example, intelligent wing sails have been introduced in some shipping vessels to increase the use of wind energy and reduce reliance on fossil fuels (UK Research and Innovation Centre, 2021). These measures aim to improve shipping designs, making them more energy-efficient and responsive to environmental needs.

Corporate Social Responsibility (CSR) and the Development of Environmental Laws

As highlighted in this study, the crude oil industry is an integral part of the maritime industry. It accounts for the bulk of the goods transported at sea (United Nations Secretariat, 2022). In an interconnected world, the concept of CSR blends with environmental sustainability because they both recognize the importance of environmental sustainability (Bui et al., 2021). CSR forms the basis for the development of environmental laws, as these pieces of legislation aim to operationalize the achievement of environmental goals. At the same time, practitioners of stakeholder theory have commonly mentioned the concept of CSR, as both underscore the importance of addressing both financial and non-financial issues affecting corporate management (Gaonkar & Chetty, 2020).

Both concepts share an overriding common philosophy that promotes the idea of responsible business practices as the benchmark of performance measurement. Therefore, CSR integrates both social and environmental aspects of business performance into a broader understanding of what constitutes a successful business. Thus, the CSR concept and stakeholder theory suggest that businesses should operate in a manner that appreciates their larger societal importance.

The concept of CSR has since evolved from being exclusively focused on including all stakeholders in business relationships to emphasizing the importance of operating enterprises ethically and sustainably. As businesses recognize the importance of social responsibility in corporate development, they are becoming increasingly customer-centric, rather than profit-oriented (Council of the European Union, 2021).

Based on this assertion, it is believed that integrating CSR into management and policy development is a positive step towards transforming a company by inspiring change. Relative to these findings, sustainable management policies and other legislative instruments aimed at protecting the environment from the “excesses” of business operations have an impact on a firm’s operations based on the relationship that exists between firms and their environments (SINAY SAS, 2021). Therefore, the law serves as a tool for managing the business environment and helping society achieve its collective Sustainable Development Goals (SDGs). Consequently, changes to the legal environment are likely to influence business and industry performance.

These developments have the potential to impact business operations, thereby integrating environmental management principles into strategic development. This plan is likely to succeed in an environment where not only competitors but also environmentalists, policymakers, and the public are addressing the impact of business operations on the environment (Rodriguez, 2022; Bui et al., 2021). However, the process of introducing laws to protect the environment has been met with hostilities and sometimes an attitude of noncompliance. Some of the key concerns reported as the causes of this problem include the lack of transparency in the development and implementation of these laws (UK Research and Innovation Centre, 2021).

Particularly, there is an overriding sense of a lack of trust between companies, lawmakers, and their customers when laws are formulated without adequate consultation of key stakeholders (Council of the European Union, 2021). The stakeholder theory of engagement provides a framework for understanding how to repair such relationships. This plan enables business leaders to determine the most effective strategy for implementing their CSR plans.

Environmental Entrepreneurship

Environmentalists have advocated for a decrease in the demand for fossil fuels as a matter of environmental concern. Amid these efforts, the impact of changes in demand for crude oil has affected how companies enforce environmental regulations, as they are constantly caught in a battle to balance their economic and environmental interests (BMI, 2020). The concept of environmental entrepreneurship has emerged from this background, and it features prominently in this paper because it supports the relationship between business and society. This link is rooted in an overarching philosophy that proposes the view that entrepreneurship exists to address human problems by providing solutions (Nyhus, 2020).

Given that climate change poses a challenge to human development, the above assumption holds because entrepreneurship should provide solutions in the same way it addresses other societal problems. This expectation explains the basis through which environmental entrepreneurship has emerged and been embraced in corporate circles.

The concept of environmental entrepreneurship has attracted increased academic interest due to its potential to moderate the relationship between businesses and their environments. Consequently, some analysts predict that this strategy is the best way for firms to meet their environmental and economic goals (Nyhus, 2020). This statement explains why several researchers have linked entrepreneurial environmental plans with the promotion of a “green” corporate image (Boegershausen et al., 2022). Similarly, scholars have associated the concept with product diversity and increased market expansion (Kurtzke & Setkute, 2021). Nonetheless, despite the relationship between profitability and environmental entrepreneurship, the contemporary form of sustainability is more complicated than its traditional format, which was exclusively focused on profit maximization.

The concept of environmental entrepreneurship shares a close relationship with sustainability. It seeks to find ways of exploiting present resources without compromising the ability to do the same in the future (United Nations Secretariat, 2022). For many firms, environmental entrepreneurship is characterized by proactive management of a firm’s economic and social goals (Boegershausen et al., 2022). In relation to this statement, researchers have examined factors that drive economic entrepreneurship, with a particular emphasis on how to help firms achieve their environmental and economic objectives (BMI, 2020).

In an entrepreneurial context, business managers have to balance their profit and environmental interests. Executives or Multinational Corporations (MNCs) have not always prioritized the approach in business (Nyhus, 2020). Consequently, a negative outcome has been sufficient because the traditional, profit-oriented focus of entrepreneurship has been replaced with an improved plan for meeting environmental and commercial goals (Boegershausen et al., 2022). Therefore, the traditional approach to corporate development is one-sided due to its bias toward achieving economic interests at the expense of all other concerns.

Broadly, the concept of environmental entrepreneurship underscores the wealth of research data on the importance of ecological awareness in business operations. This finding has been supported by pieces of evidence highlighting the importance of CSR and environmental awareness in corporate management (Nyhus, 2020). Relative to these findings, scholars have demonstrated that the inclusion of environmental law in industrial operations is a step toward the progressive evolution of business practices, which have traditionally been dominated by an insatiable need to satisfy profit-maximization objectives (Kurtzke & Setkute, 2021). Therefore, the introduction of environmental laws in business operations is a relatively new concept in business management.

Overall, the process of integrating environmental and economic goals in corporate development initiatives provides us with a holistic understanding of past and present challenges affecting industries. To strike a balance between these two influences, it is recommended that technological tools, such as automation, be adopted in the management of operational tasks to improve compliance standards with new laws (Brooker, Barnett, and Cribbin, 2018). At the same time, automation is assumed to have the capacity to help modernize sea transport by entrenching sustainability as a core basis of planning its operations (Nyhus, 2020). This approach to development is consistent with the global objectives of ensuring the sustainability of all modes of transport. The shipping industry is not an exception and is thus subject to new environmental regulations, such as the “Fit for 55 Package”.

Tenets of the “Fit for 55 Package”

The “Fit for 55 Package” is a set of legislative proposals designed to transition Europe to a carbon-neutral continent by 2030 (United Nations Secretariat, 2022). These proposals are interconnected and designed to create a fair and competitive environment where the industry can achieve positive environmental and economic outcomes (Abasilim, Gberevbie, and Osibanjo, 2019). This legislative tool was developed after identifying ambiguous areas in legislation that required further support (Boegershausen et al., 2022). The “Fit for 55 Package” covers a range of policy areas and economic sectors, including climate change, renewable energy, land use, transportation services, buildings, and forestry (United Nations Secretariat, 2022). This law takes into account the impact of existing legislative proposals and their effects to date.

The “Fit for 55 Package” comes from a backdrop of ineffective legislative policies aimed at reducing greenhouse gases through a carbon exchange program. In the EU, this policy is linked to the development of carbon credits, which are an arrangement between companies and authorities that allows for the release of a specified amount of greenhouse gases in exchange for the sale of a corresponding number of carbon credits (Rodriguez, 2022).

This environmental policy agreement stems from the cap-and-trade policy adopted in the 1990s to reduce sulfur emissions (Hanley, Shogren, and White, 2019). This emission-trading scheme is currently in partial use in the EU, with the promise of its extension to other European sectors, including non-EU states (Abasilim, Gberevbie, and Osibanjo, 2019). It contains a series of minor policy proposals aimed at promoting the use of renewable energy and energy-efficient engines.

The overarching goal of the aforementioned legislation is to make energy more affordable and less environmentally impactful than fossil fuel use. It was found that existing legislation is unresponsive to market failures affecting legislative compliance with environmental laws (UK Research and Innovation Centre, 2021). Based on this weakness, it has been established that the carbon-pricing model is inadequate to address market failures and challenges imposed by market barriers on regulatory compliance (Boegershausen et al., 2022). Therefore, the policy mix proposed by proponents of the “Fit for 55 Package” underscores the need to address pricing, target setting, and the development of support initiatives as areas that require legislative intervention.

The goal is to promote a culture of environmental conservation in industry and enterprise management. However, the process of implementing new laws is affected by geopolitical and economic uncertainties (United Nations Secretariat, 2022). Indeed, it is unclear how the adoption of the “Fit for 55 Package” will impact the EU maritime industry, as an ongoing discrepancy between environmental and economic goals may affect industry performance. Nonetheless, the “Fit for 55 Package” is a crucial law for the EU because it is a key deliverable in the EU’s 2030 environmental roadmap. It aims to support the EU’s goal of achieving carbon neutrality by 2050.

Summary

The current body of evidence examined in this chapter presents fragmented findings on the impact of legislative proposals aimed at enhancing ecological awareness in commerce. The materials analyzed in this section of the study were instrumental in understanding forces influencing the performance of the maritime sector and the implications of policy compliance among international firms. The list of materials reviewed in this assessment is not exhaustive, as more articles are available for further analysis (see Appendix 1). However, there is a lack of nuanced understanding of the industry’s or legislative dynamics that could impact compliance with environmental laws and long-term industry competitiveness among individuals, companies, and industries. The present study seeks to fill this research gap by providing a nuanced understanding of the impact of the “Fit for 55 Package” on the performance of crude oil shippers. The findings will have policy implications for business operations in the 21st century and beyond.

Methodology

Introduction

This chapter highlights strategies adopted by the researcher in answering the study questions. The format for this review is consistent with the framework proposed by Saunders et al. (2019) in developing a research methodology chapter. In their assessment, the scholars suggested that a methodological review should have six levels of analysis, including research philosophy, research design, research approach, time analysis, and data collection techniques/procedures, as shown in Figure 3.1 below.

Based on the different levels of methodological analysis outlined above, scholars suggest that the process of selecting the most suitable technique for a research investigation depends on the study’s objectives (Subramaniam, 2019). Consistent with this advice, the selection processes associated with each level of methodological analysis are described below.

Research Philosophy

Based on the merits, demerits, and appropriateness of the above-mentioned research philosophies, pragmatism was employed as the main philosophy underpinning the current investigation. This philosophy was selected because it enables researchers to choose techniques that allow them to answer their research questions (Esteban-Bravo & Vidal-Sanz, 2021; Nunan et al., 2020). This approach takes into account unforeseen variables, which may be unknown to readers but are known to researchers when developing strategies for collecting or analyzing data.

Research Approach

The approach adopted by a researcher when undertaking an investigation should align with the philosophy underlying the investigation. As highlighted above, the pragmatist research philosophy was selected for use in the present investigation. This technique can be paired with an inductive or deductive approach, based on key elements of a research investigation (Raju & Prabhu, 2019). The inductive approach begins with a commonly accepted premise about a research issue and uses the same information to conclude (Stokes, 2017). Comparatively, the deductive research approach aims to test a specific theoretical position on a research issue. Given that the current investigation interrogates the effects of new environmental regulations on the business activities of crude oil tankers, a deductive approach is suitable. Its appropriateness stems from the fact that the investigation is conducted from a common legal premise, and subsequent deductions are made.

Research Strategy

According to the research onion highlighted in Figure 3.1, seven main strategies are available to researchers when conducting their investigations. They include archival research, surveys, interviews, questionnaires, ethnography, grounded theory, and case studies (Kurtzke & Setkute, 2021). The researcher adopted a combination of the survey questionnaire method and archival strategy to complete the present investigation. The justification for using both techniques is rooted in the use of both primary and secondary sources of information in the current probe. Stated differently, the questionnaire survey method provided a source of primary research data, while the archival strategy was a source of secondary information. Both sets of data were combined, compared, and contrasted to enrich the findings.

Research Choice

The choice adopted by a researcher when conducting an academic investigation depends on the availability and accessibility of desired data. The two main research choices used in research investigations are qualitative and quantitative (Brannen, 2017). The quantitative research choice is appropriate for use when a researcher intends to measure quantifiable variables. Alternatively, the qualitative method is suitable for scholars involved in investigations that measure subjective variables (Kumar & Gautam, 2021). The present study employed a mixed-methods research design, integrating both qualitative and quantitative aspects of analysis within a broader research framework.

This dual approach to data collection was suitable for use in the present study because its variables encompassed both qualitative and quantitative aspects. Stated differently, innovation, efficiency, and capacity use are SCM aspects that share qualitative and quantitative properties. Furthermore, the aim of this study, which seeks to examine the impact of the latest environmental laws on the commercial operations of crude oil companies, shares similar properties with law enforcement, as it is a qualitative variable. In contrast, its commercial impacts have a quantitative nature.

Time Horizon Strategy

The time strategy employed by researchers in academic investigations pertains to the time intervals for data collection and analysis. The two primary time horizon strategies employed in academic studies are longitudinal and cross-sectional methods (Allibang, 2020). A cross-sectional sample is associated with investigations where researchers collect data at one point in time (Economics and Social Research Council, 2021). In comparison, longitudinal strategies involve collecting data over an extended period (Conway, 2020). Based on this difference in strategy, the researcher used the cross-sectional time horizon technique to conduct the present investigation. The collection of data justified this plan at one point in time. Therefore, the views expressed by the respondents relate to the prevailing social, political, and economic environment of the EU maritime environment.

Techniques and Procedures

The techniques and procedures used in this investigation refer to the data collection and analysis systems established by the researcher to gather information from the respondents. The data collection section, which appears in subsequent sections of this chapter, highlights the tools and instruments employed by the researcher to collect the views of employees working in the EU maritime industry. It also explains the variables underpinning the study as well as the scale used to measure the respondents’ views.

Data Collection

As highlighted in this chapter, the present study included primary and secondary data findings. Primary data were collected from employees engaged in the EU maritime industry, and their views on the research topic were categorized into three key areas of performance: efficiency, capacity utilization, and innovation. In comparison, secondary information was obtained from published sources, including books and journals. The techniques employed by the researcher to capture both sets of information are highlighted below.

Primary Data

The present research included primary and secondary sources of data within a mixed-methods research framework. Therefore, qualitative and quantitative elements of the review were integrated into the overall analysis. Primary data were obtained from employees working in European shipping firms, and secondary information was from books, journals, and credible websites. The primary research data were developed after sampling the views of 152 respondents operating the three crude oil shipping companies in the EU. The researcher recruited them using the snowball sampling method, which is characterized by the development of an initial contact in a business who then introduces a researcher to other people (Stokes, 2017). The snowball sampling technique was employed in the current probe because the researcher was familiar with employees in the shipping firms where the informants worked. The opinions of the informants on the research topic were collected through online questionnaire surveys (see Appendix 2).

Secondary Data

As highlighted in this chapter, secondary information was the second type of data employed in the current investigation. In this part of the probe, the researcher included books and journals as the main sources of data. At the same time, statistics from credible websites and institutional reports were included in the analysis to complement the data collection plan.

The secondary research materials were included in the investigation to compare and contrast primary data and make the overall findings robust, as recommended by Kumar and Gautam (2021).

Data Analysis

The primary data, which contained the views of the respondents, were analyzed using the Statistical Package for the Social Sciences (SPSS) software due to its rich history in social research investigations (Brooker, Barnett, and Cribbin, 2018). For example, van Wingerde and van Ginkel (2021) have utilized SPSS in social research to assess psychological outcomes among groups of customers seeking high-quality goods and services. Therefore, the justification for using the SPSS technique in the current probe is rooted in its widespread application in the social discipline field. Comparatively, the content analysis technique will be employed to review secondary information.

Findings

Introduction

This chapter highlights the findings derived from implementing the strategies outlined in Chapter 3 above. The section comprises sets of primary and secondary information gathered from practitioners in the EU maritime industry, as well as credible sources of secondary research. Key areas discussed in this chapter highlight the views conveyed by the informants in their responses to the research questions.

Primary Research Findings

Primary research data were collected from 152 respondents working in three oil shipping companies. The current probe sampled their demographic profiles by asking questions relating to their ages, gender, work experiences, and educational backgrounds.

Gender

The first demographic variable sampled in this investigation related to the informants’ gender profile. Table 4.1 below shows that most informants (59.2%) were male, while female participants comprised 40.8% of the total sample.

Table 4.1. Distribution of respondents according to gender (Source: Developed by Author)

The difference in gender representation in the study may be attributed to the high proportion of male employees in the maritime industry compared to other economic sectors.

Age

The respondents’ ages formed the second category of findings in the demographic analysis section of this review. Table 4.2 below shows that most informants (48%) were people younger than 25 years. The second-largest group of participants consisted of employees between 26 and 35 years old. They accounted for 28.9% of the sample, while those who were aged between 36 and 45 years formed 15.1% of the total sample. Table 4.2 below summarizes the findings.

Table 4.2. Distribution of respondents according to age (Source: Developed by Author)

The high representation of young people in the sample population could be linked to their overrepresentation in entry-level positions within the SCM departments of their respective organizations.

Education Qualifications

The respondents’ education qualifications formed the third category of the demographic analysis results. Table 4.3 below indicates that the majority of the informants (34.9%) were employees who held a Diploma certificate. The second largest group of participants consisted of those with a High school or lower certification, accounting for 30.3% of the total sample of informants. The least represented group of participants was made up of those who had a “Ph.D. or Higher” level of education.

Table 4.3. Distribution of respondents according to education qualifications (Source: Developed by Author)

The high representation of informants with low levels of education could be linked to their ages. This is because the findings highlighted in Table 2 above showed that most of the informants were young people.

Work Experience

The respondents’ work experience equally formed a critical part of this analysis, as the researcher aimed to determine whether this variable influenced their views on the research topic. Table 4.4 below indicates that an equal number of informants worked in the organization for “less than 2 years” and “between 2 and 5 years”.

Table 4.4 Distribution of respondents according to work experience (Source: Developed by Author)

Again, the findings demonstrated above could be indicative of the high representation of young employees in the sample population.

Operational Analysis Findings

The influence of new environmental rules on the efficiency, innovativeness, and capacity development of the SCM activities of crude oil companies dominated the operational analysis section of this investigation. The findings presented in Table 4.5 below summarize the respondents’ views on efficiency as one of the operational variables in the study.

Table 4.5 Impact of new regulations on SCM efficiency (Source: Developed by Author).

Statistics

Comparatively, the impact of new laws on how innovative crude oil companies’ SCM activities are equally formed part of this analysis. As demonstrated in Table 4.6 below, the respondents’ views on the effect of new regulations on the innovativeness of the SCM activities were largely neutral or positive, as the mean variable for the sampled statements was less than 3.

Table 4.6 Impact of new regulations on innovation in the SCM activities of crude oil companies (Source: Developed by Author).

The findings highlighted above were instrumental in affirming the positive impact of legislative changes on the innovation of SCM activities. Its impact on capacity utilization is formed in the last part of the probe. As demonstrated in Table 4.7 below, the informants largely held neutral views on this statement. Therefore, the impact of the new regulations on the capacity of oil companies to maximize their operational plans was inconclusive. Table 4.7 below summarizes the views of the respondents regarding the impact of this variable on the SCM activities of crude oil companies.

Table 4.7. Impact of new regulations on capacity utilization among crude oil companies (Source: Developed by Author)

Inferential Analysis

The inferential analysis section of this probe examined the impact of demographic variables on the informants’ views about the study topic. To recap, the study captured four main demographic variables: gender, age, educational qualifications, and work experience. The impact of these demographic variables on the findings is highlighted below.

Impact of Gender on Findings

The impact of the respondents’ gender on their views was analyzed via the one-way ANOVA method. Table 4.8 below reveals that this variable did not significantly impact the respondents’ attitudes, as neither statement met the significance threshold of p < 0.05.

Table 4.8. Impact of Gender on Findings (Source: Developed by Author)

The insignificant impact of the informant’s gender on the results means that their views were independent of their sexual orientations. This finding promotes objectivity in interpreting the results.

Impact of Age on Findings

The impact of the respondents’ ages on their views was also studied using one-way ANOVA. Table 4.8 below proves that this variable did not have a significant effect on the respondents’ views, as none of the statements met the threshold of p < 0.05.

Table 4.8. Impact of Age on Findings (Source: Developed by Author)

The insignificant impact of the informant’s age groups on the findings means that their backgrounds did not influence their views.

Impact of Education Qualifications on Findings

The impact of the respondents’ educational backgrounds on their views was assessed using the one-way ANOVA method. Table 4.9 below establishes that this variable did not have a significant impact on the respondents’ opinions, as none of the statements met the significance threshold of p < 0.05.

Table 4.9. Impact of Education Qualifications on Findings (Source: Developed by Author)

The insignificant impact of the informant’s educational backgrounds on the findings presupposes that their attitudes were independent of their schooling.

Impact of Work Experience on Findings

The impact of the respondents’ work experiences on their views was investigated using the one-way ANOVA method. Table 4.10 below demonstrates that this variable did not have a significant impact on the respondents’ responses, as no statement met the significance threshold of p < 0.05.

Table 4.10. Impact of work experience on findings (Source: Developed by Author)

The insignificant impact of the informant’s work experiences contradicts previous research findings that highlighted the impact of work experience on employee performance. However, the discrepancy could arise from industry variations in performance.

Discussions

Introduction

This section of the study integrates primary and secondary data to understand their relevance to the inquiry’s objectives. Their roles in helping the investigator to answer the research questions will be equally explained in this stage of the research process.

Critical Areas of Focus

This study addressed important areas of interest related to the implementation of new environmental laws in the maritime shipping industry, acknowledging potential areas of conflict between environmental and economic goals. To address this area of interest, the findings of this investigation included both primary and secondary data. The primary research process aimed to identify the properties of new environmental laws that would impact the commercial operations of crude oil shipping companies. The secondary research findings helped to contextualize this data.

Particularly, the supplementary investigation focused on highlighting key aspects of the “Fit for 55 Package” that are instrumental in the operationalization of SCM functions of the maritime industry.

In identifying critical areas of focus for the “Fit for 55 Package”, evidence published before 2017 was excluded from the investigation. The researcher deemed them outdated, based on the importance of understanding current sociopolitical and economic forces that affect the maritime industry. Excluding outdated data from this investigative process meant that the researcher only reviewed materials published within the last five years, specifically 2017-2022. The goal of following this research plan was to ensure that the most up-to-date information was used in the probe.

Broadly, the investigations revealed that the “Fit for 55 Package” differed from other legislative instruments in the maritime industry due to the contents of its proposal and its impact on the financial performance of crude oil shipping companies (World Business Council for Sustainable Development, 2021). The first area of strategic interest that emerged in the current investigation was based on changes in tax laws. This proposal is part of the “Fit for 55 Package” and has the potential to impact the profitability of firms (World Business Council for Sustainable Development, 2021).

The second area of interest for the proposed study relates to the proposal to ban future combustion engines. At the same time, the third issue concerns the process of renovating shipping vessels to comply with existing environmental laws. The introduction of a minimum tax rate and the potential increase in environmental targets, as suggested in the “Fit for 55 Package,” were other areas of interest that emerged from the current investigations. Table 5.1 below highlights the main areas of empirical review and the number of articles associated with each.

Table 5.1. Content analysis findings (Source: Developed by Author)

Based on the findings highlighted above, articles that discussed the enhancement of environmental goals received the most mentions, while those that focused on introducing a minimum tax rate received the fewest mentions. These findings of the secondary research process played a significant role in designing the research questions. Stated differently, the elements under investigation highlighted above were instrumental in understanding the impact that new environmental laws would have on the SCM performance of crude oil shipping companies.

The process of getting reliable data to address the current area of academic interest stemmed from the types of questions posed to the respondents. This statement emphasizes the importance of assessing the relationship between the questions posed in the probe and the types of responses anticipated.

The first part of the questionnaire included details relating to the demographic profile of the participants, including their gender, age, education qualifications, and work experience. These variables were included in the investigation due to their potential to influence the respondents’ views (Ahmad, 2020; Brandt et al., 2022). For example, education qualifications, age, and work experience have been reported to impact employee attitudes and commitment. Similarly, they have an impact on performance at different levels of training and learning (Airey et al., 2021; Bryan, Pope, and Rankin-Wright, 2021). Thus, it was essential for the researcher to examine the impact of these variables on the views expressed by the respondents.

The second part of the survey questionnaire was designed to capture the respondents’ views on the three fundamental areas of commercial interest defined above. The questions posed to the respondents in this section of the analysis were relevant to the SCM activities of crude oil shippers. Therefore, in the operational analysis section of the questionnaire, three variables were assessed in the analysis: innovativeness, capacity utilization, and efficiency. These elements of the analysis were used to measure the effects of the new environmental restrictions on the commercial activities of crude oil shippers.

The variables were selected for use in the investigation because they are directly involved with the profitability of shipping companies in the maritime industry (Bui et al., 2021). For example, operational efficiency has been linked with the profitability of shipping companies (Ozguc, 2021). Similarly, innovation, a core variable in the study, was linked to the competitiveness of shipping firms (Bui et al., 2021). At the same time, shipping companies have used their research and development processes to maintain or improve their financial performance.

The inclusion of questions interrogating the impact of new environmental regulations on capacity utilization in the probe stemmed from the fact that profitability in the crude oil transportation business was dependent on the volume of crude oil transported (Ozguc, 2021). Consequently, given that shipping companies often price their services based on the volume of crude oil transported, it was assumed that capacity utilization affected their financial performance and competitiveness in the industry (Bui et al., 2021). Based on the interconnected and interdependent relationships between the operational aspects of shipping companies and their commercial performance, the three variables of innovativeness, capacity utilization, and efficiency formed the premise for undertaking the current probe.

The survey questionnaire, designed to gather respondents’ views on the respective operational areas, contained five questions for each of the variables studied. Therefore, given that three variables were studied in the research, the informants reacted to 15 questions, each representing an aspect of commercial performance associated with the maritime shaping industry – innovation, efficiency, and capacity utilization. The views expressed by the respondents were measured using the Five-point Likert scale. This tool contains five levels of reaction, including “strongly agree”, “agree”, neither agree nor disagree,” “disagree”, and “strongly disagree”. This assessment tool was included in the investigation due to its widespread use in social science papers (Stokes, 2017). Furthermore, it has been widely adopted across different levels of academic analysis.

Overall, the proposals, as contained in the “Fit for 55 Package”, are ambitious and appear to be predicated on the implementation of a pragmatic approach to environmental laws. In the context of this assessment, these plans can be analyzed within the philosophical contexts that gave rise to them. In this assessment, philosophy refers to the worldview adopted by policymakers when developing or implementing new laws and policies. It provides a structure for collecting and analyzing feedback across different levels of legal rigor in the implementation of environmental laws (Melnikovas, 2018). Limits to the actions of policymakers are also highlighted through philosophy. Later, they are linked to the overarching role of maintaining harmony in legislative processes.

The pragmatist research philosophy was suitable for analyzing the findings of the current study because the crude oil shipping industry is vulnerable to numerous extrinsic and intrinsic factors that may impact the commercial operations of maritime operators. Proponents of this perspective argue that knowledge is subjective, influenced by the impact of internal and external factors on the potential for shipping companies to comply with new environmental laws (Patten & Newhart, 2017). Therefore, the interpretation of research findings is dependent on people’s viewpoints. Alternatively, the pragmatist research philosophy encourages policymakers to utilize the most effective tools to achieve legislative goals.

Hypotheses Test Findings

As highlighted in this chapter, two sources of data were engaged to help answer the research questions of this study. Three hypotheses were tested in this plan, focusing on predicting the impact of the recent environmental regulations on the efficiency, innovativeness, and capacity of crude oil shippers to reach their SCM goals. These hypotheses were connected to the ability of shipping businesses to comply with environmental laws controlling their activities in the maritime industry. Table 5.2 below summarizes the findings of the analysis.

Table 5.2. Hypotheses testing results (Source: Developed by Author)

Based on the findings highlighted in Table 4.1 above, discussions about supply chain efficiency addressed the impact of new environmental regulations on the internal processes of shipping companies transporting crude oil. The concept is derived from the need to utilize the most suitable techniques to effectively allocate a firm’s resources, including human personnel, financial, and physical resources, towards accomplishing an organization’s goals.

Despite the noble intentions of policymakers to minimize the environmental impact of industry, evidence shows that some policy proposals could have unintentional or unwanted effects. These variations often occur due to global economic and geopolitical uncertainties that affect how companies operate. Research studies authored by scholars such as Alhmoud and Rjoub (2019) affirm the relationship between geopolitical uncertainties and industry performance. They are further bolstered by the abundance of literature that demonstrates how uncertainties impact corporate performance (Al-Kwifi, Farha, and Zaraket, 2020). Currently, the European Union’s maritime industry is affected by several factors, including the war in Ukraine, managing the aftermath of COVID-19 on supply chain systems, and economic uncertainties in the broader EU region.

Key tenets of stakeholder theory apply to the present investigation. They highlight the importance of engaging all stakeholders in the formulation and implementation of environmental policies. This duty is important in ensuring that assumptions about the industry’s operations are not relied on to develop long-term policies in environmental management. Addressing the interests and needs of all stakeholders would enable business leaders to understand the implications of adhering to the tenets of the “Fit for 55 Package” without compromising the quality of their business relationships with suppliers and their internal operational systems. This statement explains the rejection of hypothesis 3, which indicated that the new regulations would negatively impact capacity utilization. This outcome is pegged on the failure of some scholars to distinguish between the short-term and long-term effects of policy proposals on their overall performance.

Reliability and Validity of Findings

Safeguarding the reliability and validity of research findings is a crucial step in ensuring the integrity of research processes. Consistent with this goal, the researcher employed the member-check technique to affirm the findings of the investigation. This tool enables researchers to share the study’s findings with respondents prior to publication (Stokes, 2017). Consequently, informants have an opportunity to interrogate the investigation and assess how the researcher conveyed their views. Based on their responses, the researcher identified areas of consistency and inconsistency in the final presentation of the findings, as well as the original intentions of the informants. These disparities were addressed prior to the completion and publication of the final project.

The findings of this study were developed after considering potential areas of SCM operations that may be affected by the adoption of new environmental regulations. At the same time, it is uncertain whether the political and commercial interests of EU member states will influence the adoption of new environmental laws by shipping companies.

It is equally important to recognize that the scope of this investigation has been on comprehending the impact of new environmental regulations on the business interests of crude oil companies. Conversely, it means that the non-commercial impacts of complying with the “Fit for 55 Package” have not been addressed in this investigation. Consequently, it is important to interpret the findings of this investigation within the economic boundaries of SCM interests in the maritime industry.

Ethical Implications of the Study

The ethical considerations highlighted in this chapter stem from the inclusion of human participants in the development of the study’s findings. Relative to the importance of safeguarding the integrity of research processes, there is a common assumption that researchers should protect the interests of respondents throughout all stages of an investigation (Stokes, 2017). In response to this need, four ethical areas of study were relevant to the present investigation, and they are discussed below.

Privacy and Confidentiality of Data

The personal identities of the respondents were not included in the final publication of this dissertation. The goal was to reflect the interest of the participants objectively without disclosing the identities of the people who shared the information.. This goal was achieved because presenting the research data anonymously made it possible for readers to consume it without disclosing the identities of the informants.

Informed Consent

All participants in the present investigation gave their views about the research information voluntarily. Stated differently, they were not coerced or incentivized to give their views on the research topic. The informants were also made aware of their freedom to withdraw from the investigation without repercussions. Appendix 1 shows a copy of the informed consent form that the informants signed before choosing to take part in the investigation voluntarily.

Treatment of Data

Processes associated with the collection and treatment of pieces of information presented by the respondents were completed electronically. This plan means that the researcher stored data in a computer and secured it using a password. To minimize the probability of encountering a security breach, this password was privy only to the researcher. After completion of the research process, the data will be destroyed to further ensure that unauthorized people do not gain access to confidential information and disclose it at the expense of the researcher and the respondents.

Conclusion

Summary

This study aimed to interrogate the impact of the “Fit for 55 Package” on the SCM operations of crude oil tankers in the EU. The investigation was guided by four key objectives, which aimed to forecast the impact of the latest environmental regulations on the innovativeness, efficiency, and capacity of crude oil shippers to achieve their SCM goals. These objectives of the investigation were linked to the ability of shipping companies to comply with environmental laws governing their operations in the maritime industry.

In terms of operational efficiency, the insights drawn from this probe indicated that efficiency gains were likely to be experienced through the entrenchment of sustainability in SCM activities. In the area of innovativeness and competitiveness, the findings of this investigation showed that the adoption of the new environmental laws would stifle innovation and competitiveness. This outcome could be attributed to the limited strategic options companies can pursue when innovating because those that do not meet the sustainable threshold would be automatically dismissed. At the same time, the “Fit for 55 Package” is likely to affect the operationalization of SCM activities at various levels of operation, thereby creating a conflict in objectives. Stated differently, different levels of SCM activities could attract various compliance standards that ultimately affect the

Capacity utilization was another area of research in the present investigation. The findings of the inquiry revealed that the new environmental laws would have a mixed impact on the capacity utilization potential of crude oil companies. This outcome is partly attributed to the varied impact that industry and organization-level interventions would have on the ability of shipping companies to obey the new environmental rules.

By highlighting challenges that crude oil companies face in complying with new regulations, the findings of this investigation will contribute to the creation of a democratic atmosphere of engagement where the interests of all parties can be discussed and addressed. It is assumed that such deliberations would create a friendly environment for shipping companies to comply with existing laws. This strategy will similarly play an instrumental role in minimizing incidences of tax evasion and noncompliance with new laws. The same action would make it easier for enforcement officers to do their job by directing their resources to other areas of compliance.

The findings of this study will also play an important role in fostering intergenerational and international solidarity in managing the effects of climate change. This vision is premised on the understanding that our current climate actions will have a long-term impact on the health and well-being of future generations. Understanding the impact of the latest environmental regulations on the industry will provide a gateway for the realization of this goal.

This strategy will help to step up climate action around the world, which is an initiative pursued by millions of young people. The findings of the investigation will help in providing a model for replicating balanced industry and climate actions across other industries, besides the maritime sector. Therefore, the experiences of the maritime industry in complying with new environmental laws will play a critical role in helping policymakers in other industries design laws that uphold environmental and commercial goals. Recommendations for balancing the economic and environmental objectives of stakeholders in the EU maritime sector are discussed below, including proposals for future research.

Recommendations

The findings of this investigation have highlighted gaps in the implementation of environmental laws in the EU maritime sector. These gaps indicate potential areas of weakness where policy recommendations may fail to achieve their intended objectives. To address some of the challenges that emerge from this inconsistency, crude oil shipping companies should consider leveraging new technologies in the management of their SCM activities. In other words, smarter technologies need to be adopted in such firms to make their transportation model more sustainable and resilient.

Digital mapping tools and outcome imaging techniques can be used to develop reliable models for forecasting the impact of future policy recommendations on the operations of these companies. At the center of these transformative proposals should be a recognition of the importance of automating supply chain management functions as a precursor to the transformation of other aspects of SCM. This recommendation stems from the need to use automation as the basic platform for the transformation of SCM activities to make them more environmentally friendly and sustainable (Brooker, Barnett, and Cribbin, 2018). At the same time, transitioning into a sustainable economy would play a pivotal role in increasing employment opportunities for people intending to work in the maritime industry.

Overall, the findings of this investigation highlight the importance of modernizing sea transport by entrenching suitability as a core basis of operation. The pieces of evidence analyzed are consistent with global objectives aimed at ensuring all modes of transport are sustainable, including the shipping industry. The findings of this investigation will equally be instrumental in improving the compliance standards of shipping companies with environmental laws.

This contribution to industry development stems from research studies that highlight low levels of compliance with environmental laws, especially by shipping companies operating in developing economies. Indeed, despite efforts to modernize environmental laws and make them friendlier to shipping companies, there are still some competing interests between economic and environmental objectives in the maritime sector. The presence of such confrontation creates an environment where some companies may be tempted to be non-compliant with these laws, thereby negating their intentions of protecting the environment while protecting economic interests.

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Appendix

Appendix 1: Annotated Bibliography

Dang, T. D. & Tran, T. A. (2020). ‘Rural industrialization and environmental governance challenges in the Red River Delta, Vietnam’, The Journal of Environment & Development, 29(4), pp. 420–448. https://doi.org/10.1177/1070496520942564

This journal article explored the environmental impact of urbanization in rural Vietnam. The researchers demonstrated that high rates of environmental degradation often accompany economic growth. Government policies aimed at protecting the environment from these adverse effects have failed because the perceived benefits of industrialization, such as high-paying jobs, still attract many people to cities. Therefore, the authors proposed that governments should meet both developmental and environmental needs in policy development. The methodology chosen by the researchers to address this issue was sound because it assessed the impact of environmental policies on four communities living in the River Delta region of Vietnam. This article is useful to the current probe because it explores the relationship between environmental policy implementation and economic development. The insights gained from the experiences of entrepreneurs in rural Vietnam in the study can be used to understand the likely impact of similar regulations on crude oil shipping companies operating in the EU maritime sector.

Ding, L. (2022). ‘Environmental Regulation and the Innovation Performance of Chinese Export Firms: A Quasi-Natural Experiment based on the Law of Promoting Cleaner Production’, SAGE Open, 12(4), pp. 1–12. Web.

This study explored the impact of environmental regulations on the Chinese export industry. The researchers found that compliance with environmental regulations stifled innovation and negatively impacted productivity. These findings were derived from an analysis of panel data collected from 18 Chinese industries. The findings of this study are useful to the current probe because they help to explain the impact of environmental regulations on innovation, competitiveness, and performance of industries, which are common bases for developing a competitive advantage.

Guo, Y., & Wang, L. (2022). ‘Environmental entrepreneurial orientation and firm performance: the role of environmental innovation and stakeholder pressure’, SAGE Open, 12(1), pp. 1-10. Web.

This journal article sought to understand the relationship between environmental innovation and firm performance. The authors used the resource-based view and stakeholder theory to investigate the impact of environmental innovation on firm performance. The Chinese-based study involved the collection of data from 418 Chinese firms, and its findings indicated that stakeholder involvement was critical in understanding the effects of environmental compliance on firm performance. This study is relevant to the current inquiry because it provides theoretical contributions to the role that compliance withwith environmental laws plays in improving corporate performance. This way, it is possible to predict the overall impact of legislative interventions on compliance levels with new environmental laws.

Gill, G. N., & Ramachandran, G. (2021). Sustainability transformations, environmental rule of law and the Indian judiciary: Connecting the dots through climate change litigation. Environmental Law Review, 23(3), 228–247. Web.

This journal article addresses the need for entrepreneurs to adopt transformational sustainability in enterprise development. This article draws on social science literature to explain how sustainable transformation can be achieved through judicial interventions. The Indian-based study indicated that improvements in climate litigation outcomes led to better conditions for environmental compliance. The findings of the investigation are relevant to the current probe because they explain the role of judicial intervention in initiating behavior change that supports sustainable management principles in industries.

Faroque, S., & South, N. (2022). Law-enforcement challenges, responses and collaborations concerning environmental crimes and harms in Bangladesh. International Journal of Offender Therapy and Comparative Criminology, 66(4), 389–406. Web.

This article aims to explore strategies for addressing environmental crimes committed by Multinational Companies (MNCs). The Bangladesh-based study gathered data through 15 interviews with experts and an analysis of policy document, discussing environmental compliance levels in Bangladesh. The paper identified weak institutional systems, a lack of coordination among government departments, and unclear role definitions as major impediments to the implementation of new environmental laws in Bangladesh. The findings of this investigation are relevant to the current probe because they highlight ways to identify and resolve challenges associated with the adoption of the “Fit for 55 Packages.”

Zhou, Z., Wu, H., Ding, T. & Xia, Q. (2019). Nonradial directional distance function for measuring the environmental efficiency of the Chinese iron and steel industry. Tropical Conservation Science, 12(2), 1–11. Web.

This study aimed to explore methods for implementing sustainable management principles in the Chinese steel and coal industries. The inquiry involved analyzing evidence from 30 steel companies in China. The investigation revealed that the process of determining the best sustainable management principle to adopt should be based on a review of the technical and overall efficiency levels that can be expected from adopting the new approach. The findings of this investigation will be useful to the current study because they highlightthey highlight ways that environmental management principles can be incorporated into corporate management practices,, in the same way as the principles of the “Fit for 55 Package” are designed to be implemented in the maritime transport sector.

Shen, W., & Jiang, D. (2021). Making Authoritarian Environmentalism Accountable? Understanding China’s New Reforms on Environmental Governance. The Journal of Environment & Development, 30(1), 41–67. Web.

This study was designed to explore ways of institutionalizing legal amendments to environmental management policies. A Chinese-based study indicated that local authorities have reported high rates of success in enforcing new regulations, partly due to the politicization of the implementation process. The researchers collected data from primary and secondary sources. The secondary data pat involved a policy document analysis of articles published between 2016 and 2018. Alternatively, the primary research processes included interviews with local government officers at the grassroots levels. The findings of the investigation draw parallels with the current probe’s focus, as both explore ways to implement new environmental regulations in existing industries.

Jakobsson, N., Muttarak, R., & Schoyen, M. A. (2018). Dividing the pie in the eco-social state: Exploring the relationship between public support for environmental and welfare policies. Environment and Planning: Politics and Space, 36(2), 313–339. Web.

This study aimed to investigate public opinion on environmental law and governance,, as it was identified as a crucial pillar in the enforcement of new laws. The researchers analyzed data from 14 countries, which explored the impact of individual and country-level environmental programs implemented between 1993 and 2010. The findings highlighted the importance of contextual awareness in measuring support for environmental programs. The findings of this investigation are relevant in estimating the level of public support that proponents of the “Fit for 55 Package” are likely to experience after its adoption in the maritime sector.

Appendix 2: Questionnaire

Part A: Demographic Data

• What is your gender?

  • Male.
  • Female.
• What is your age?

  • 18-25 Years.
  • 26-35 Years.
  • 36-45 Years.
  • 46-55 Years.
  • Over 55 Years old.
• What is your highest education qualification?

  • High School or lower.
  • Diploma.
  • Undergraduate.
  • Masters.
  • PHD or higher.
• How many years have you worked in the maritime industry?

  • Less than 2 years.
  • 2-5 Years.
  • 5-10 Years.
  • 10-15 Years.
  • More than 15 years.

Part B – Operational Analysis

SCM Efficiency

• Renovating shipping vessels to comply with new environmental regulations would improve energy efficiency for crude oil shippers

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• Introducing a minimum tax rate for ship fuel would improve energy efficiency

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• A future ban on internal combustion engines would create inefficiencies in the production of shipping vessels

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• Changing the company’ tax policies to comply with new environmental regulations would create efficiency gains in the supply chain management functions

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• An increase in the renewable energy target for the shipping industry would improve operational efficiency for crude oil operators

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.

Innovation and Competitiveness

• Renovating shipping vessels to comply with new environmental regulations would promote innovation in the implementation of supply chain management plans

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• Introducing a minimum tax rate for ship fuel would stifle innovation in the management of supply chain management strategies

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• A future ban on internal combustion engines would cause supply chain disruptions in the crude oil shipping industry

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• Changing the company’ tax policies to comply with new environmental regulations would make it difficult for shippers to innovatively meet their clients’ needs

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• An increase in the renewable energy target for the shipping industry would enhance innovation in the management of supply chain activities

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.

Capacity Utilization

• Renovating shipping vessels to comply with new environmental regulations would increase capacity utilization of supply chain management activities in the industry

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• Introducing a minimum tax rate for ship fuel would enhance capacity utilization of supply chain management activities in the industry

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• A future ban on internal combustion engines would empower suppliers to develop more environmentally friendly shipping vessels

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• Changing the company’ tax policies to comply with new environmental regulations would make our supply chain management activities less expensive

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.
• An increase in the renewable energy target for the shipping industry would enhance our capacity to meet supply chain management objectives

  • Strongly Agree.
  • Agree.
  • Neither Agree nor Disagree.
  • Disagree.
  • Strongly Disagree.