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Corporate social responsibility and service quality provision in shipping firms: financial synergies or trade-offs?

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  • Kum Fai Yuen
  • Vinh V. Thai

Abstract

This study examines whether the implementation of corporate social responsibility (CSR) and provision of service quality (SQ) to satisfy shippers result in financial synergies or trade-offs for shipping firms. To address this question, a contingency framework was introduced in this study. The literature was first reviewed for hypotheses development, followed by interviews with eight industry practitioners. Subsequently, an internet survey was administered to 156 shipping firms in Singapore, and the obtained data were analysed using path model analysis and simple slope analysis. The results indicate that CSR complements SQ and provides additional but modest financial contribution to shipping firms via customer satisfaction. In addition, synergistic interactions between SQ and CSR were found. Although there are financial synergies from the implementation of CSR and provision of SQ, the analysis reveals that CSR should only be engaged when a shipping firm is fairly competent at delivering quality shipping services. This paper contributes to both theory and practice by framing business decisions on implementing CSR under contingency theory and offering a strategic approach to managing SQ as well as CSR of shipping firms.

Suggested Citation

  • Kum Fai Yuen & Vinh V. Thai, 2017. "Corporate social responsibility and service quality provision in shipping firms: financial synergies or trade-offs?," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(1), pages 131-146, January.
    • Handle: RePEc:taf:marpmg:v:44:y:2017:i:1:p:131-146
    DOI: 10.1080/03088839.2016.1237782
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    3. Yuen, Kum Fai & Thai, Vinh V. & Wong, Yiik Diew & Wang, Xueqin, 2018. "Interaction impacts of corporate social responsibility and service quality on shipping firms’ performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 397-409.
    4. Claudia Durán & Fredi Palominos & Raúl Carrasco & Eduardo Carrillo, 2021. "Influence of Strategic Interrelationships and Decision-Making in Chilean Port Networks on Their Degree of Sustainability," Sustainability, MDPI, vol. 13(7), pages 1-17, April.
    5. Kum Fai Yuen & Do Thi Khanh Huyen & Xueqin Wang & Guanqiu Qi, 2020. "Factors Influencing the Adoption of Shared Autonomous Vehicles," IJERPH, MDPI, vol. 17(13), pages 1-17, July.
    6. Yuen, Kum Fai & Wang, Xueqin & Wong, Yiik Diew & Zhou, Qingji, 2018. "The effect of sustainable shipping practices on shippers’ loyalty: The mediating role of perceived value, trust and transaction cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 123-135.
    7. Michael Stein & Michele Acciaro, 2020. "Value Creation through Corporate Sustainability in the Port Sector: A Structured Literature Analysis," Sustainability, MDPI, vol. 12(14), pages 1-17, July.
    8. Zhou, Yusheng & Li, Xue & Yuen, Kum Fai, 2022. "Holistic risk assessment of container shipping service based on Bayesian Network Modelling," Reliability Engineering and System Safety, Elsevier, vol. 220(C).
    9. Yuen, Kum Fai & Wang, Xueqin & Wong, Yiik Diew & Ma, Fei, 2019. "A contingency view of the effects of sustainable shipping exploitation and exploration on business performance," Transport Policy, Elsevier, vol. 77(C), pages 90-103.
    10. Yuen, Kum Fai & Thai, Vinh V. & Wong, Yiik Diew, 2018. "An investigation of shippers’ satisfaction and behaviour towards corporate social responsibility in maritime transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 275-289.
    11. Yuen, Kum Fai & Wang, Xueqin & Wong, Yiik Diew & Li, Kevin X., 2020. "The role of stakeholder participation and sustainability integration in maritime transport: A structure-conduct-performance analysis," Transport Policy, Elsevier, vol. 99(C), pages 44-53.
    12. Antonio Comi & Antonio Polimeni, 2020. "Assessing the Potential of Short Sea Shipping and the Benefits in Terms of External Costs: Application to the Mediterranean Basin," Sustainability, MDPI, vol. 12(13), pages 1-17, July.

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