Applying Sociotechnical Systems Theory to Examine the Values of Lean Practices in the Context of Container Shipping

Szu-Yu Kuo,Liang-Bi Chen

doi:10.1109/access.2021.3123448

Szu-Yu Kuo, Liang-Bi Chen

Open Access

https://doi.org/10.1109/access.2021.3123448

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Abstract

Research at the nexus of maritime management and operational performance suggests that lean management may benefit from sociotechnical systems theory (STS) in terms of long-term business performance. The purpose of this study is to examine the extent to which lean management practices can improve operational performance. This study aims to assess the relationships between lean policy, lean practices, operational performance, and business performance in the context of container shipping. The examined data are acquired from 212 respondents in Taiwan, and a structural equation model is employed to evaluate the hypotheses. The results show that lean policy and practice positively impact both lean social practices and lean technical practices. Lean social practices and lean technical practices are positively related to operational performance. Operational performance is associated with business performance. In particular, lean policy has a direct relationship with operational performance. Based on lean policy is easily able to directly improve its lean social practices and lean technical practices, proving lean policy can strongly push organizations towards further enhanced performance. Although it will be ups and downs along the way in terms of business performance, improving long-term business value and cost advantage is very importance. Thus, this article contributes to a more nuanced understanding of the effect of lean practices and discusses practical implications for container shipping companies.

Highlights

Maritime transport is a critical element of cross-border transportation meshworks that sustains globalized international trade [1]-[2]
This implies that the respondents had enough practical experience and authority to reply to the questionnaire items related to lean policies (LPOs), Lean social practices (LSPs), lean technical practices (LTPs), OPERATIONAL PERFORMANCE (OP), and BUSINESS PERFORMANCE (BP) in the context of container shipping
While previous studies [22], [47] have argued that lean concepts enable improved performance, this hypothesis may have not been previously empirically examined in the context of container shipping

Summary

Introduction

Maritime transport is a critical element of cross-border transportation meshworks that sustains globalized international trade [1]-[2]. In 2019, the total volume of containerized trade increased at a rate of 1.1%, which was down from 3.8% in 2018 and amounted to a total of 152 million twenty-foot equivalent units (TEUs) [1]. Several global business environments have continuously caused an imbalance between cargo and shipping space supply. This imbalance involves ships’ imbalance capacity, the organization of strategic alliances, and significant changes in ocean freight rates and bunker prices [1], [3]. The idle container ship fleet comprised 1.6 million TEUs in March 2016. In June 2016, it cost less than USD 800 to ship one 40foot container from Shanghai to the west coast of North America [4]. COVID-19 and uneven global economic recovery caused this problem to spread worldwide at the end of 2019 [5]

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