Purpose – Anchoring on configuration theory, the purpose of this paper is to evaluate how supply chain relationship quality (SCRQ) differs across firm characteristics (FC) in the maritime logistics industry. In addition, it utilises transactional cost theory to establish the relationship between SCRQ and supply chain performance (SCP). Design/methodology/approach – The data were obtained from a survey with 205 maritime logistics service players (shipping firms, shippers and freight forwarders) in Singapore. MANOVA and t-test analyses are used to examine the difference in SCRQ (i.e. trust and commitment) across FC which includes firm types and ownership types. Thereafter, structural equation modelling is employed to examine the influence of SCRQ on SCP. Findings – The results indicate that the effects of trust and commitment on SCRQ vary significantly. It was also found that trust as an aspect of SCRQ has a significant impact on SCP, whereas commitment does not. Research limitations/implications – As the field data were obtained from only one industry, future replication of the findings to other industries should consider industry-specific factors, if applicable. Practical implications – It is suggested that maritime logistics service players should carefully manage trust and commitment to simultaneously enable SCP. By identifying the various aspects of FC that contribute to SCRQ, maritime logistics service providers could devise appropriate strategies for different customer segments more effectively. Originality/value – This study expands current supply chain research by linking two dimensions of SCRQ in relationship marketing with SCP in supply chain management. It is also one of the first empirical attempts to explore the role of FC in the linkage between SCRQ and SCP in the maritime logistics industry.

Introduction

The maritime logistics industry plays a critically important role in facilitating global commerce as more than 90 per cent of the world’s trade in terms of volume is carried by sea (IMO, 2016). The industry is a complex system with many players and interdependent relationships both horizontally and vertically (Caschilli and Medda, 2012). The industry plays a pivotal role in global supply chains today (Panayides, 2006). This is effectuated by the disintegration in the manufacturers’ supply chain to leverage on national comparative advantages (Williamson, 2008). The resulting outsourcing and offshore production practices lengthen physical distribution and invoke greater participation from the maritime logistics industry (Notteboom and Rodrigue, 2008). Increasingly, manufacturers are recognising logistics as a source of competitive advantage, which can be acquired from closer collaboration with their logistic service partners (Lavie, 2006) upon which trust and commitment are built. It was noted that the maritime logistics industry functions as a disseminator of strategic information (Hsu, 2013). The growing contribution of the maritime logistics industry towards global supply chains is matched with the popularisation of maritime logistics in the recent literature (Panayides and Song, 2013). For the past decades, shipping firms have consolidated their supply chain both horizontally and vertically by means of merger and acquisition (Fusillo, 2006). However, this trend was noted to be on the decline and the emphasis has now shifted to supply chain integration (SCI) through the adoption of cooperative and collaborative structures, mechanisms and processes (Frémont, 2009). Presently, greater level of coordination and collaboration are observed among actors in the maritime logistics chain with the introduction of multimodal transport operator (Frémont, 2009), fourth-party logistics (Tezuka, 2011), and collaborative instruments, such as partnerships, alliances, joint-ventures and vessel-sharing agreements (Evangelista and Morvillo, 2000). SCI in the maritime logistics industry is linked with numerous organisational benefits (Tseng and Liao, 2015). For instance, it is linked with efficiency gains due to greater economies of scale and reduction in transaction costs (Panayides and Cullinane, 2002). It also improves the overall quality of shipping services due to wider economies of scope (Heaver, 2002). In addition, many scholars generally agreed that the efficiency of supply chains can be improved through the integration with maritime logistics service providers (Naim et al., 2006; Chen and Lee, 2008; Yang et al., 2014).