Vertical Integration Strategies: The Norwegian Salmon Farming Industry

Abstract

The adoption of vertical integration strategies among salmon farming enterprises can significantly influence competitive advantage in the Norwegian industry. Despite the widespread implementation of both fully- and partially vertical integration of their value chains, challenges and inefficiencies remain. This master thesis builds on the resource-based view and dynamic capabilities framework to complement previous literature by examining how different levels of vertical integration can impact competitive advantage. The research is based on a multiple case study analysis of two large salmon farming enterprises in Norway, where one follows a fully integrated value chain strategy and the other a partially integrated value chain strategy. Findings suggest a relationship between the degree of vertical integration and competitive advantage. The strength of this relationship was also found to depend on a set of conditional factors. Contributions include: first, identifying the characteristics of integrated value chain integration in the salmon farming enterprises; second, providing insights into the difference between fully- and partially integration of the value chains in enhancing competitive advantage; and third, explaining how different levels of vertical integration can influence operational efficiency and market positioning. The study offers practical implications for industry stakeholders seeking to optimize their integration strategies. Most notably, enterprises should be aware of the opportunities and challenges associated with different levels of vertical integration and consider the contextual factors that may affect their strategic effectiveness.