Purpose - The changing role of seaports in supply chains has been the
subject of extensive research in the recent literature. The strategic
development of seaport terminals, responding to the need for closer
integration into supply chains, invites a more detailed examination of
the influence of the supply chain structures on seaport performance.
Therefore, this paper aims to investigate the effects of supply chain
structures, especially the degree of integration of seaports into supply
chains, on seaport performance. Design/methodology/approach - The
parameters for a structural equation model were identified in the first
instance from the supply chain and seaport operations and management
literature. The structural equation model itself was then devised, and
subsequently refined, using data from Korean seaport terminal operators,
shipping companies and freight forwarding companies. The structural
equation model was used to assess the level of supply chain integration
of seaports and the relationship to port performance. Findings - The
results indicate that the integration of seaports into supply chains has
a positive impact on both the effectiveness and the efficiency of
seaport performance. In addition, antecedents to seaport supply chain
integration are identified; these suggest that a strong orientation to
supply chain integration within a port operating company enables the
company to adopt and implement a strategy that integrates functions
within the port and with other upstream and downstream organisations.
Research limitations/implications - As the field data were
geographically limited to one country, extending the findings of this
study to other geographical areas may not be possible, although the
approach taken, using the structural equation modelling technique,
should be transferrable elsewhere. Cross-validation of the model would
widen its applicability to other areas. The paper provides a framework
that allows other researchers to examine the level of integration of
ports into supply chains. Practical implications - The potential
benefits of closer integration of seaports into supply chains are shown
with supply chain integration having a positive effect on port
performance. Seaports which do not integrate with their supply chains
have a lower level of performance. Thus, enhanced port performance
accruing from closer integration would have positive implications both
for port and terminal managers and for other supply chain participants.
Originality/value - This study, for the first time, empirically examines
the impact of the integration into supply chains of seaports on their
performance. This is achieved by the development of a structural
equation model which is then tested in the field, thus extending the
existing literature which is largely conceptual or descriptive.