The antecedents and consequences of supply chain service capabilities in the context of container shipping

Abstract

Purpose – The purpose of this paper is to empirically examine the relationships among supply chain integration (SCI), supply chain service capabilities, market performance (MP), and financial performance (FP) in the container shipping context and develops valid and reliable instruments for future research. Design/methodology/approach – A structured questionnaire was used to gather data from 133 container shipping operators and agencies in Taiwan, using confirmatory factor analysis, the author identified main dimensions of SCI and supply chain service capabilities in container shipping context. A structural equation model was then used to test the research hypotheses. Findings – This study has identified a set of five dimensions that can enable effective SCI: top management support, cross-functional cooperation, information technology, goal congruence, and collaborative communication, and highlighted the critical mediating role of supply chain service capabilities (i.e. service efficiency, service reliability, service flexibility, and value-added service) in improving firms’ market and FP. The authors confirm that SCI has a positive impact on supply chain service capabilities, which in turn helps to enhance market and FP. Practical implications – This research can thus serve as a valuable reference for managers to achieve better SCI formation and performance, help managers to develop more effective collaborative relationships, and thus minimize the chance of SCI failure. Originality/value – This manuscript provides a theoretical framework to link SCI, supply chain service capabilities, MP, and FP for the container shipping service supply chain context that have not been previously reported through empirical research.