IDEAS home Printed from https://ideas.repec.org/a/pal/marecl/v20y2018i3d10.1057_s41278-017-0066-8.html
   My bibliography  Save this article

Does more competition result in better port performance?

Author

Listed:
  • SangHyun Cheon

    (Hongik University)

  • Dong-Wook Song

    (World Maritime University)

  • Sungjin Park

    (Hongik University)

Abstract

This study examines the impact of competitive pressure on port performance. We merge the competitive rivalry literature with the port management literature to explain the inverted U-shaped relationship between competitive pressure and port performance within the increasingly competitive realm of world ports. A newly designed index measures competitive pressure that organizations face based on market commonality and domain overlap. Using data for global hubs and national gateway ports, we find potential diseconomies of excessive competitive pressure on port performance.

Suggested Citation

  • SangHyun Cheon & Dong-Wook Song & Sungjin Park, 2018. "Does more competition result in better port performance?," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(3), pages 433-455, September.
    • Handle: RePEc:pal:marecl:v:20:y:2018:i:3:d:10.1057_s41278-017-0066-8
    DOI: 10.1057/s41278-017-0066-8
    as

    Download full text from publisher

    File URL: https://link.springer.com/10.1057/s41278-017-0066-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41278-017-0066-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tongzon, Jose L., 1995. "Determinants of port performance and efficiency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(3), pages 245-252, May.
    2. Joel A. C. Baum & Helaine J. Korn, 1999. "Dynamics of dyadic competitive interaction," Strategic Management Journal, Wiley Blackwell, vol. 20(3), pages 251-278, March.
    3. Lindawati & Johan van Schagen & Mark Goh & Robert de Souza, 2014. "Collaboration in urban logistics: motivations and barriers," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 18(2), pages 278-290, July.
    4. Magali Delmas & Yesim Tokat, 2005. "Deregulation, governance structures, and efficiency: the U.S. electric utility sector," Strategic Management Journal, Wiley Blackwell, vol. 26(5), pages 441-460, May.
    5. Estache, Antonio & Gonzalez, Marianela & Trujillo, Lourdes, 2002. "Efficiency Gains from Port Reform and the Potential for Yardstick Competition: Lessons from Mexico," World Development, Elsevier, vol. 30(4), pages 545-560, April.
    6. Cullinane, Kevin & Song, Dong-Wook & Gray, Richard, 2002. "A stochastic frontier model of the efficiency of major container terminals in Asia: assessing the influence of administrative and ownership structures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(8), pages 743-762, October.
    7. Clark, Ximena & Dollar, David & Micco, Alejandro, 2004. "Port efficiency, maritime transport costs, and bilateral trade," Journal of Development Economics, Elsevier, vol. 75(2), pages 417-450, December.
    8. Richard R. Nelson, 1991. "Why do firms differ, and how does it matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 61-74, December.
    9. Hercules Haralambides & Michele Acciaro, 2015. "The new European port policy proposals: Too much ado about nothing?," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 17(2), pages 127-141, June.
    10. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
    11. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    12. H E Haralambides, 2002. "Competition, Excess Capacity, and the Pricing of Port Infrastructure," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 4(4), pages 323-347, December.
    13. Carsten Fink & Aaditya Mattoo & Ileana Cristina Neagu, 2002. "Trade in International Maritime Services: How Much Does Policy Matter?," The World Bank Economic Review, World Bank, vol. 16(1), pages 81-108, June.
    14. Alfred E. Kahn, 1988. "The Economics of Regulation: Principles and Institutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610523, April.
    15. Turner, Hugh & Windle, Robert & Dresner, Martin, 2004. "North American containerport productivity: 1984-1997," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(4), pages 339-356, July.
    16. Siah Hwee Ang, 2008. "Competitive intensity and collaboration: impact on firm growth across technological environments," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1057-1075, October.
    17. Tongzon, Jose & Heng, Wu, 2005. "Port privatization, efficiency and competitiveness: Some empirical evidence from container ports (terminals)," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(5), pages 405-424, June.
    18. Oliver D. Hart, 1983. "The Market Mechanism as an Incentive Scheme," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 366-382, Autumn.
    19. Nickell, Stephen J, 1996. "Competition and Corporate Performance," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 724-746, August.
    20. Cheon, SangHyun & Dowall, David E. & Song, Dong-Wook, 2010. "Evaluating impacts of institutional reforms on port efficiency changes: Ownership, corporate structure, and total factor productivity changes of world container ports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(4), pages 546-561, July.
    21. Kannan Ramaswamy, 2001. "Organizational ownership, competitive intensity, and firm performance: an empirical study of the Indian manufacturing sector," Strategic Management Journal, Wiley Blackwell, vol. 22(10), pages 989-998, October.
    22. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12426.
    23. Peter Howitt, 2004. "Endogenous Growth, Productivity and Economic Policy: A Progress Report," International Productivity Monitor, Centre for the Study of Living Standards, vol. 8, pages 3-15, Spring.
    24. Cullinane, Kevin & Ji, Ping & Wang, Teng-fei, 2005. "The relationship between privatization and DEA estimates of efficiency in the container port industry," Journal of Economics and Business, Elsevier, vol. 57(5), pages 433-462.
    25. Jonathan Vogel, 2008. "Spatial Competition with Heterogeneous Firms," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 423-466, June.
    26. repec:wbk:wbpubs:12425 is not listed on IDEAS
    27. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, April.
    28. Douglas R. Johnson & David G. Hoopes, 2003. "Managerial cognition, sunk costs, and the evolution of industry structure," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 1057-1068, October.
    29. Vickers, John, 1995. "Concepts of Competition," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 1-23, January.
    30. Sea Jin Chang & Dean Xu, 2008. "Spillovers and competition among foreign and local firms in China," Strategic Management Journal, Wiley Blackwell, vol. 29(5), pages 495-518, May.
    31. Ming‐Jer Chen & Hao‐Chieh Lin & John G. Michel, 2010. "Navigating in a hypercompetitive environment: the roles of action aggressiveness and TMT integration," Strategic Management Journal, Wiley Blackwell, vol. 31(13), pages 1410-1430, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Gleser & Ralf Elbert & Hongjun Wu, 2023. "Port Competition through Hinterland Connectivity—A Case Study for Potential Hinterland Scope in North Rhine-Westphalia (NRW) Regarding an Environmental Policy Measure," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    2. Castelein, R.B. & Geerlings, H. & van Duin, J.H.R., 2019. "Divergent effects of container port choice incentives on users' behavior," Transport Policy, Elsevier, vol. 84(C), pages 82-93.
    3. Gidion, Dickson K. & Hong, Jin & Adams, Magdalene Z.A. & Khoveyni, Mohammad, 2019. "Network DEA models for assessing urban water utility efficiency," Utilities Policy, Elsevier, vol. 57(C), pages 48-58.
    4. Shahrzad Nikghadam & Kim F. Molkenboer & Lori Tavasszy & Jafar Rezaei, 2023. "Information sharing to mitigate delays in port: the case of the Port of Rotterdam," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(3), pages 576-601, September.
    5. Michael Stein & Michele Acciaro, 2020. "Value Creation through Corporate Sustainability in the Port Sector: A Structured Literature Analysis," Sustainability, MDPI, vol. 12(14), pages 1-17, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Güner, Samet, 2015. "Investigating infrastructure, superstructure, operating and financial efficiency in the management of Turkish seaports using data envelopment analysis," Transport Policy, Elsevier, vol. 40(C), pages 36-48.
    2. Suárez-Alemán, Ancor & Morales Sarriera, Javier & Serebrisky, Tomás & Trujillo, Lourdes, 2016. "When it comes to container port efficiency, are all developing regions equal?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 56-77.
    3. Pérez, Ivone & Trujillo, Lourdes & González, María Manuela, 2016. "Efficiency determinants of container terminals in Latin American and the Caribbean," Utilities Policy, Elsevier, vol. 41(C), pages 1-14.
    4. Pierre CARIOU & Gabriel FIGUEIREDO DE OLIVEIRA, 2015. "Les Déterminants De L'Efficience Portuaire : Une Analyse Des Ports À Conteneurs Méditerranéens," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 41, pages 83-99.
    5. Merkel, Axel & Holmgren, Johan, 2017. "Dredging the depths of knowledge: Efficiency analysis in the maritime port sector," Transport Policy, Elsevier, vol. 60(C), pages 63-74.
    6. Gonzalez, M. & Trujillo, L., 2007. "Efficiency measurement in the port industry: a survey of the empirical evidence," Working Papers 07/08, Department of Economics, City University London.
    7. Gong, Stephen X.H. & Cullinane, Kevin & Firth, Michael, 2012. "The impact of airport and seaport privatization on efficiency and performance: A review of the international evidence and implications for developing countries," Transport Policy, Elsevier, vol. 24(C), pages 37-47.
    8. Suárez-Alemán, Ancor & Morales Sarriera, Javier & Serebrisky, Tomás & Trujillo, Lourdes, 2016. "When it comes to container port efficiency, are all developing regions equal?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 56-77.
    9. Shui-Mu Ju & Nan Liu, 2015. "Efficiency and its influencing factors in port enterprises: empirical evidence from Chinese port-listed companies," Maritime Policy & Management, Taylor & Francis Journals, vol. 42(6), pages 571-590, August.
    10. Samet Güner, 2018. "Incorporating value judgments into port efficiency measurement models: insights from Turkish ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(4), pages 569-586, December.
    11. Feng Pian & Lili Xu & Yuyan Chen & Sang-Ho Lee, 2020. "Global Emission Taxes and Port Privatization Policies under International Competition," Sustainability, MDPI, vol. 12(16), pages 1-25, August.
    12. Angela Stefania Bergantino & Enrico Musso, 2011. "The role of external factors versus managerial ability in determining seaports’ relative efficiency: An input-by-input analysis through a multi-step approach on a panel of Southern European ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 13(2), pages 121-141, June.
    13. Trujillo, Lourdes & González, María Manuela & Jiménez, Juan Luis, 2013. "An overview on the reform process of African ports," Utilities Policy, Elsevier, vol. 25(C), pages 12-22.
    14. Cheon, SangHyun, 2007. "World Port Institutions and Productivity: Roles of Ownership, Corporate Structure, and Inter-port Competition," University of California Transportation Center, Working Papers qt7t64h5wr, University of California Transportation Center.
    15. Pérez, Ivone & González, María Manuela & Trujillo, Lourdes, 2020. "Do specialisation and port size affect port efficiency? Evidence from cargo handling service in Spanish ports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 234-249.
    16. López-Bermúdez, Beatriz & Freire-Seoane, María Jesús & Nieves-Martínez, Diego José, 2019. "Port efficiency in Argentina from 2012 to 2017: An ally for sustained economic growth," Utilities Policy, Elsevier, vol. 61(C).
    17. Cullinane, Kevin & Song, Dong-Wook, 2006. "Estimating the Relative Efficiency of European Container Ports: A Stochastic Frontier Analysis," Research in Transportation Economics, Elsevier, vol. 16(1), pages 85-115, January.
    18. Antonio Affuso & Cataldo Ferrarese & Guido Nannariello, 2013. "Spending Review: un?analisi di efficienza delle Capitanerie di porto," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2013(3), pages 111-143.
    19. Figueiredo De Oliveira, Gabriel & Cariou, Pierre, 2015. "The impact of competition on container port (in)efficiency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 124-133.
    20. Tovar, Beatriz & Wall, Alan, 2015. "Can ports increase traffic while reducing inputs? Technical efficiency of Spanish Port Authorities using a directional distance function approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 128-140.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:marecl:v:20:y:2018:i:3:d:10.1057_s41278-017-0066-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.