The analysis of gaps in inter-organizational networks of international freight forwarders

Abstract

This study analyzes the gaps in inter-organizational network between market uncertainty (MU) and organizational uncertainty (OU) within the international freight forwarding industry in Korea. The measurement factors are developed based on previous studies. 54 questionnaires were completed by Korean international freight forwarders. Reliability of the data is identified by factor analysis, and the validity is tested by Cronbach’s alpha. The hypothesis is verified as follows: the sample firms are classified into four clusters by cluster analysis on the basis of MU and OU, the gaps in inter-organizational network among the four clusters are tested by analysis of variance, and real gaps are identified by post hoc analysis. The results indicated a high level of inter-organizational network among clusters with both a high level and a low level of MU and OU. International freight forwarders in these clusters maintained long-term and collaborative relationships with partners through their networks. Therefore, multinational enterprises (MNEs) seeking to enter the market may benefit from forming a network with Korean international freight forwarders through agency contracts rather than through foreign direct investment (FDI).