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Barriers to supply chain integration in the maritime logistics industry

Author

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  • Kum Fai Yuen

    (Division of Infrastructure Systems & Maritime Studies, School of Civil and Environmental Engineering, Nanyang Technological University)

  • Vinh Thai

    (School of Business IT & Logistics, RMIT University)

Abstract

Supply chain integration (SCI) is a management philosophy that centres on intra- and inter-firm coordination and collaboration. The aim of this study is to identify and discuss the underlying barriers that inhibit SCI in the maritime logistics industry. A list of barriers was identified from literature and interviews. Subsequently, surveys on the barriers were administered on 172 container shipping firms. From exploratory factor analysis, the results suggest that the extensive barriers can be parsimoniously represented by five factors. The first factor relates to the lack of trust and commitment because of the display of scepticism and opportunistic behaviour. The second factor is related to resistance to change which is a result of complacency and individualism. The third factor corresponds to the incompatibility of operating and strategic goals, which is caused by inadequate supply chain leadership and poor partner selection. The fourth factor pertains to the lack of resources. This issue is pertinent to small firms and those operating in numerous parallel logistics chains. Finally, the last factor relates to measurement failure. The inability to accurately measure and assign cost to the activities that are necessary for the completion of a maritime logistics service prevents the equitable distribution of rewards, which is a critical success factor for SCI.

Suggested Citation

  • Kum Fai Yuen & Vinh Thai, 2017. "Barriers to supply chain integration in the maritime logistics industry," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(3), pages 551-572, August.
    • Handle: RePEc:pal:marecl:v:19:y:2017:i:3:d:10.1057_mel.2016.10
    DOI: 10.1057/mel.2016.10
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