Performance differences between nations exploiting a common natural resource: The Icelandic–Norwegian mackerel case

• Published in: Marine Policy
• Main Authors: Bertheussen, Bernt Arne, Dreyer, Bent, Dreyer, Sofie, Evenseth, Susann
• Format: Article in Journal/Newspaper
• Language: English
• Published: Elsevier 2020
• Subjects: VDP::Social science: 200::Economics: 210; VDP::Samfunnsvitenskap: 200::Økonomi: 210; Norway; Iceland; North East Atlantic
• Online Access: https://hdl.handle.net/10037/19680; https://doi.org/10.1016/j.marpol.2020.104269

The same type of industries, located in different nations, may perform differently in global markets. This comparative case study of the Icelandic and Norwegian mackerel industries explores whether national resources, capabilities, and institutional environments can help elucidate performance differences in exporting a common natural resource. To gain insight into the phenomenon, the present study utilizes landing and export statistics from the two nations supplemented with qualitative data based on interviews with key stakeholders in both nations. The findings show that Norway achieves a significantly higher export price on North East Atlantic mackerel than does Iceland. The price premium is consistent over time. Different qualities of the fish exported from the two countries are considered to be the main reason for the price contrast. The quality differential, as the present study argues, is primarily due to biological conditions, which neither of the two nations control, as the natural quality of the mackerel is highest when the fish is accessible in Norwegian waters. Accordingly, Norway has a biological competitive advantage over Iceland in terms of mackerel export. However, it is argued that Norway’s ability to exploit the advantage commercially may be related to national resources and capabilities but hardly to the Norwegian institutional framework, which does not allow firms to integrate vertically. Finally, in the paper, the findings are discussed, and implications are outlined.