A Framework Proposal for Evaluating the Organizational Reliability and Capability of a Liner Shipping Operator in a Fuzzy Context

Abstract

Reliability and capability have become significant concerns for Liner Shipping Operators (LSOs) to distinguish themselves from their competitors in the liner shipping industry. Many organizations including LSOs have accepted that having a highly reliable and capable performance at the organizational level is an important element in the drive for better overall performance, and commitment to achieve a better competitive advantage. However, to understand how far LSOs are reliable, internal and external factors (i.e. exogenous influential factors) that determine the Organizational Reliability and Capability (ORC) should be evaluated. As a result, the aim of this study is to evaluate the value of the ORC of an LSO by considering five main criteria, namely operational reliability, financial capability, knowledge management, compliance with regulations and service quality capability. Furthermore, the influence of the business environment on the organizational functions is investigated. This study makes uses of a Fuzzy Bayesian Belief Network (FBBN) for evaluating the value of ORC of an LSO. The results have shown that the financial capability is a strong indicator for the internal ORC of the LSOs. In addition, the sensitivity analysis has resulted the model output is more sensitive respectively to the security and safety compliances than the other 28 input variables. This method of assessment can help LSOs to conduct self-evaluation of the ORC for enhancing their business sustainability in the liner shipping industry. In addition, maritime researchers will benefit from the proposed methodology for evaluating the value of the ORC of an LSO.

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