Impacts of Security Improvements on Service Quality in Maritime Transport: An Empirical Study of Vietnam

Abstract

In recent years, maritime security has become a major concern on the international maritime agenda. If security measures and initiatives are not carefully designed and effectively implemented, they can negatively impact the whole maritime transport chain. Security improvements resulting from maritime security requirements may also bring about some benefits to service quality and business performance for the organisation. However, there are limited studies conducted on these aspects. In this paper, we aim to address these gaps by devising a framework of projected impacts of security on service quality in maritime transport and conducting an empirical study to verify the projections. The study was conducted in Vietnam with a group of shipping, port and freight forwarding companies, using the triangulation of both mail survey and in-depth interview techniques. It was evident from this study that all projected relationships between security improvements and service quality are supported by both survey respondents and interviewees. Statistical analysis reveals that, among 13 projected relationships, respondents indicate clear consensus on seven projections, in which security improvements can enhance service quality in terms of increased reliability of service, social responsibility awareness, increased efficiency in operations and management, as well as enhanced image in the market. For the remaining projections, agreement was not clearly shown. This was also reflected in interviews, in which respondents emphasised that the most notable benefits brought about by security improvements are in terms of increased reliability of service performance, increased awareness and better image, thus positively affecting customers’ perception of the organisation's service quality. However, these positive impacts are only realised should service providers in maritime transport employ effective security management strategies.

Appendices

Appendix A

STUDY OF SECURITY MANAGEMENT IN MARITIME TRANSPORT INDUSTRY

General guidance

• 1 This questionnaire contains two parts. Part A is about the impacts between security improvements and service quality, part B asks general questions for classification.

• 2 Responses will not be associated with individual respondents; only summarised information will be included in the report.

• 3 If you have any questions, please feel free to call: Thai Van Vinh, Australian Maritime College, Tel.: +61 3 6335 4764 or E-mail: V.Thai@ amc.edu.au

• 4 ‘Security’ in the context of this study should be understood as the framework of security policies, processes, procedures and technology employed to protect the maritime transport service providers from maritime security threats (piracy, armed robbery, stowaways, cargo theft/pilferage, drug/people trafficking, information security and maritime terrorism), which can endanger their resources (properties, human resources and information) and services provided, as well as responsibilities to their stakeholders.

• 5 ‘Security requirements’ imply the requirements imposed by regulations such as the ISPS Code and other international and national regulations, as well as the internal requirements for security within the organisation, to ensure ‘security’ as elaborated above.

• 6 ‘Changed operating practices’ refer to operation processes and procedures that have been changed to comply with security requirements, such as early and electronic submission of shipment information, transparent shipment data, etc.

A. SECURITY IMPROVEMENTS AND SERVICE QUALITY

I. Please indicate your view on the following statements, by rating them, where

1=strongly disagree, 2=disagree, 3=neutral, 4=agree, 5=strongly agree

1. Changed operating practices following security requirements, including security-related investments in IT and EDI in the organisation's operations, can lead to the enhancement of: illustration

2. The enhanced security awareness in business environment leads to the enhancement of: illustration

II. If you answer ‘strongly disagree’ or ‘disagree’ to any of the above statements, please elaborate in the space given below or attach another page if necessary.

________________________________________________________________

________________________________________________________________

________________________________________________________________

B. PERSONAL INFORMATION

• 1 Please indicate (by checking the box) the business sector in which you are working:  Shipping company □ Port operator □ Freight forwarding company □

• 2 What is your title: __________________________________________________

• 3 Your experience (in years) in this industry: ____________________________

• 4 Do you wish to receive (by checking the box) the summary of results? Yes □ No □

Should you wish to receive the summary of results, please provide your postal or email address (this will not be revealed to anybody).

THANK YOU VERY MUCH FOR YOUR PARTICIPATION

Appendix B

INTERVIEW QUESTIONNAIRE

• 1 Do you think improvements of security, such as security-related investments on IT and EDI, will have impacts on any service quality factors in your business sector? Will they be positive or negative and how?

• 2 What will be the impacts of security requirements on the service quality-related factors in your business?