International Handbook of Maritime Economics
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International Handbook of Maritime Economics

Edited by Kevin Cullinane

This timely and comprehensive new Handbook brings together an unrivalled group of distinguished scholars and practitioners to provide in-depth analysis and a contemporary perspective on a wide-ranging array of topics in maritime economics.
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Chapter 20: Port Performance in Changing Logistics Environments: Measurement Development and Model Testing

Su-Han Woo and Stephen Pettit


Su-Han Woo and Stephen Pettit 20.1 Introduction The role and function of ports has evolved rapidly and has changed in the context of supply chains and logistics chains. Ports now operate in a new logistics environment focused on supply chain management, global sourcing and logistics outsourcing. Port operators and port authorities are adopting new strategies for improving service quality, such as strategic integration along the supply chain, customer-oriented practices and value-added activities, as well as improving operational efficiency, so that they can adapt to a more challenging logistics environment. However, port performance measurement studies still focus on traditional efficiency metrics, while the new strategies ports are adopting are associated with effectiveness rather than efficiency. It has been suggested that performance evaluation systems are expected to be inclusive of all aspects of operation and consistent with organizational goals (Beamon, 1999; Talley, 1994). Thus, in this chapter, a study aimed at developing a port performance measurement framework and instruments which reflect all the significant aspects affecting port evolution is presented. For the study, port performance measurement is assumed to be multidimensional in order to cover the diverse perspectives of port performance, such as external and internal processes and logistics activities. The measurement framework is developed from both literature and theory, and modified through an exploratory survey which identifies the significant measures. The modified measurement framework is then assessed with scale development techniques. The techniques assess the validity and reliability of the measurement instruments or scales and employ confirmatory factor analysis (CFA), which...

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