Abstract
PurposeSeaports play an immeasurable role in the advancement of international trade. They have been the common avenue for the transportation of goods and services from one continent to another, and it has also been the linking transport of one mode of transport to another. The study sought to assess the effect of paperless information technology (IT)-based custom clearance at Ghana Seaports on businesses and industrial supply chains in Ghana.Design/methodology/approachThe study conducted a survey with a sample size of 200 trading firms in Ghana.FindingsThe study discovered that IT-based port clearance has positive impact on customer order fulfillment, transaction cost reduction and supply chain relationships.Practical implicationsWith the aim of making Ghana the transportation hub of businesses in the sub region, the paperless custom clearance has the potential to reduce delays at the port and improve their supply chain.Originality/valueThis paper provides researchers with a contemporary perspective toward understanding the effect of paperless custom clearance on the supply chain of businesses in the West African sub region.
Highlights
The increase in the level of globalization gives rise to increase in the volume of international trade
From the above information on the age of the firms and the length of time for which the firms engaged in international trading, it is evident enough that majority of the firms have been in existence for more than 10 years and they have been involved in the port operations for that long as well. 16 (11.5%) respondents indicated that their firms solely export goods, 99 (71.2%) respondents showed that their firm solely import goods, and 24 (17.3%) respondents indicated that their firms are into both exporting and importing of goods
The transaction cost economics theory is employed to help explain the impact of paperless port clearance on supply chain performances which were measured along transaction cost reduction, customer order fulfillment, and Supply Chain Relationship (SCR)
Summary
The increase in the level of globalization gives rise to increase in the volume of international trade. International trade has increased in volume significantly such that a judgment from the surface could lead one to believe that every nation is expanding its international trade borders (Arvis et al, 2013). Seck (2017) has shown that a set of trade facilitation measures determine the growth of international trade. It is clear that Seck (2017) has clarified the reason why the volume and value of international trade were not rising uniformly by pinpointing the specific measures that facilitate the growth of international trade. The rate at which these factors are favorable in the country, the more it will promote the volume of international trade in the country. De Jong and Baas (2013) indicated that countries that are war prone are likely not to experience growth in international trade due to the adverse prevalence of the factors that determine the growth of international trade
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