An evaluation of alliance motives, shipping alliances, and alliance performance in Taiwan

Abstract

We introduce the transaction cost and market entry views as two critical motivations for shipping alliances and argue that shipping alliances increase alliance performance (i.e., improve oversupply, financial distress, and excessive competition). This study empirically evaluated the effects of transaction cost, market entry, and shipping alliances on alliance performance in a maritime shipping context. Data were collected from a survey of the Directory of the National Association of Shipping Agencies and Companies. A factor analysis was employed to identify the key dimensions, and a subsequent analysis was conducted using a structural equation model to test the research hypotheses. The findings show that shipping alliances act as a mediator variable between transaction cost, market entry, and alliance performance. The theoretical contributions and managerial implications are proposed to serve as a basis for a wider discussion of shipping alliances.