The influence of selection criteria on the development of value co-creation in shipping companies: the role of organizational culture and cultural intelligence

Abstract

Purpose of the research: The shipping industry is characterized by the participation of various actors located around the world. The human factor has long played an important role in the shipping industry. The human factor, whether referring to employees or partners, is responsible for interactions and the creation of partnerships, and it is therefore an essential and integral part of the day-to-day activities of shipping companies. However, the shipping industry’s complex, ever-changing, and multicultural operational environment encourages the adoption of practices, such as outsourcing, to manage the human factor. One of the most common award practices for shipping companies is that of crew management. The selection of companies’ managing crews is therefore a crucial process. So far, little attention has been paid to maximizing value through the selection of business partners (such as crew agencies) or employees (seafarers). An important factor dictating the selection process is the way an organization manages and shapes its members’ behavior—companies’ organizational cultures. Due to the multicultural business environment in which shipping companies operate, the cultivation of advanced capabilities, such as cultural intelligence (the way in which shipping companies operate in different cultural environments) can work in support of the selection and management of partnerships and/or employees. This thesis seeks to address the issue of selecting business partners by exploring the criteria shipping companies use to select manning agencies as business partners. It also tried to examine how the selection process allows value creation for both actors (shipping companies and manning offices). The role of organizational culture and cultural intelligence in the partner selection process was also explored. Finally, bearing in mind that companies’ needs depend on their size, the role of shipping companies’ size was also examined. Methodology: For the purposes of this work, a survey was carried out and data were collected from 246 Greek shipping companies that own or manage ships. The data were analyzed using exploratory and confirmatory analyses of factors through the AMOS and SPSS statistical packages. Regression analyses were carried out and mediation tests of Barron and Kenny were also used. Findings: The results determine the criteria used by shipping companies to select manning organizations as business partners and, consequently, the attributes that (hopefully) co-create value among partners, such as quality, recommendation, recruitment, and crew management. Additionally, the results demonstrate that the shipping companies’ individual organizational cultures significantly influence the selection process, while cultural intelligence facilitates communication between different types of organizational culture. Originality: The criteria by which shipping companies choose crew providers as their partners are presented. In addition, data are provided to create, increase, or strengthen mutually beneficial partnerships for shipping companies through the partner selection process. Furthermore, for the first time, the role and importance of organizational culture in the shipping industry and the concept of cultural intelligence in the context of the maritime sector are examined.