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Cruising to Success: Unveiling the Financial Harmony of Container Shipping Firms through Total Quality Management and Service Excellence

Author

Listed:
  • Luay Jum’a

    (Logistics Sciences Department, Business School, German Jordanian University, Amman 11180, Jordan)

  • Marwan Mansour

    (Logistics Sciences Department, Business School, German Jordanian University, Amman 11180, Jordan)

Abstract

Background: This paper revolves around a meticulous exploration aimed at discerning the impact of total quality management (TQM) and service quality (SQ) practices upon the financial performance (FP) of firms within the container shipping industry. Our pursuit extends further, delving into the intricacies of SQ as a potential mediating factor in the TQM–FP relationship. This distinctive study investigated six TQM practices in conjunction with five SQ factors, analyzing their impact on firm FP. Methods: This study used a quantitative research approach. Data were collected through a structured questionnaire from logistics specialists and experts in the shipping field. Results: The findings were interesting and showed that two TQM practices—managerial leadership and employee involvement—have a significant positive effect on SQ levels, and one SQ dimension, namely responsiveness, has the biggest and most significant effect on the FP of container shipping companies. Furthermore, SQ mediates the relationship between TQM and FP. Conclusions: This study provides a theoretical contribution by developing a conceptual model that elucidates the correlation between TQM practices and the degree of SQ on the FP of container shipping firms. Moreover, this study provides managers with a tool for identifying, prioritizing, and improving key TQM and SQ practices that contribute significantly to financial success.

Suggested Citation

  • Luay Jum’a & Marwan Mansour, 2023. "Cruising to Success: Unveiling the Financial Harmony of Container Shipping Firms through Total Quality Management and Service Excellence," Logistics, MDPI, vol. 7(4), pages 1-23, October.
    • Handle: RePEc:gam:jlogis:v:7:y:2023:i:4:p:76-:d:1267709
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    References listed on IDEAS

    as
    1. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    2. Luay Jum’a & Muath Esam Basheer, 2023. "Analysis of Warehouse Value-Added Services Using Pareto as a Quality Tool: A Case Study of Third-Party Logistics Service Provider," Administrative Sciences, MDPI, vol. 13(2), pages 1-23, February.
    3. Gu, Bingmei & Liu, Jiaguo, 2022. "Determinants of dry bulk shipping freight rates: Considering Chinese manufacturing industry and economic policy uncertainty," Transport Policy, Elsevier, vol. 129(C), pages 66-77.
    4. Michael Owusu-Kyei & Yusheng Kong & Michael Owusu Akomeah & Stephen Owusu Afriyie, 2023. "Assessing the Influence of Total Quality Management on Customer Satisfaction in the Telecom Industry: A TQM–SERVQUAL Perspective," Businesses, MDPI, vol. 3(2), pages 1-21, April.
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