Effect of Service Quality on Maritime Sector Performance in Nigeria
Abstract
This study was on ascertain the effect of service quality on maritime sector performance in Nigeria. Three objectives were raised which included: Determine the key dimensions of service quality relevant to the Nigerian maritime sector, evaluate how variations in service quality affect the operational efficiency of Nigerian ports and shipping operations and investigate the relationship between service quality and customer satisfaction in the maritime sector. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from seaport onne. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Chapter one
Introduction
Background of the study
The maritime sector is a cornerstone of global trade and economic development, with approximately 90% of the world’s goods transported by sea (UNCTAD, 2020). In Nigeria, the maritime industry plays a crucial role in the national economy, facilitating international trade, creating employment opportunities, and contributing to GDP. The efficiency and performance of this sector are significantly influenced by the quality of services provided, which encompasses various dimensions including reliability, responsiveness, assurance, empathy, and tangibles
Nigeria, with its strategic geographical location along the West African coast and access to the Atlantic Ocean, has several major ports, including Lagos, Port Harcourt, and Calabar. These ports serve as gateways for international trade and are vital for the import and export of goods (Nigerian Ports Authority, 2019). The Nigerian maritime sector contributes significantly to the country’s economy, with estimates suggesting it accounts for about 20% of Nigeria’s GDP and provides direct and indirect employment to millions (National Bureau of Statistics, 2018).
Service quality in the maritime sector is pivotal to operational efficiency and customer satisfaction. High service quality can lead to increased customer loyalty, reduced operational costs, and enhanced competitive advantage (Grönroos, 1984). Conversely, poor service quality can result in delays, increased costs, and loss of business. In the Nigerian context, several factors affect service quality, including infrastructural deficiencies, regulatory challenges, and inefficiencies in port operations (Ugboma, Ibe & Ogwude, 2004).
The Nigerian maritime industry faces numerous challenges that impact service quality. Infrastructural deficits, such as inadequate port facilities and poor road networks, hinder efficient operations (Akinyemi, 2016). Additionally, bureaucratic bottlenecks and corruption within regulatory agencies exacerbate delays and increase the cost of doing business (Adewuyi, 2011). Security concerns, including piracy and theft, also pose significant risks to maritime operations (Onuoha, 2012).
Improving service quality in the maritime sector is essential for enhancing Nigeria’s economic performance and global trade competitiveness. Effective service delivery can reduce turnaround time for ships, lower transaction costs, and improve overall customer satisfaction (Cullinane, Song & Gray, 2002). Furthermore, enhanced service quality can attract more international shipping lines to Nigerian ports, fostering economic growth and development (Cullinane & Wang, 2006).
Despite the recognized importance of service quality in the maritime sector, there is a dearth of empirical research focused on its impact on sector performance in Nigeria. Most studies have concentrated on broader economic implications or specific operational challenges without a comprehensive analysis of service quality dimensions and their direct effects on performance (Adewuyi, 2011; Ugboma et al., 2004). This study aims to fill this gap by examining the effect of service quality on the performance of the maritime sector in Nigeria, providing insights that can inform policy and operational improvements.
Statement of the problem
The maritime sector in Nigeria is a critical component of the national economy, playing a significant role in facilitating international trade and contributing to economic growth. Despite its importance, the sector faces numerous challenges that hinder its performance and competitiveness. One of the most pressing issues is the quality of services provided within the sector, which directly impacts operational efficiency, customer satisfaction, and overall economic performance.
Infrastructural deficiencies, such as inadequate port facilities and poor connectivity to hinterlands, exacerbate delays and increase operational costs. Additionally, regulatory challenges, including bureaucratic inefficiencies and corruption, further impede smooth maritime operations. Security concerns, particularly piracy and theft, also pose significant risks to maritime activities. These challenges collectively contribute to a decline in service quality, negatively affecting the sector’s performance.
Research has shown that service quality is a crucial determinant of customer satisfaction and operational efficiency in the maritime industry (Grönroos, 1984; Parasuraman, Zeithaml, & Berry, 1988). High service quality can lead to increased customer loyalty, reduced operational costs, and enhanced competitiveness. Conversely, poor service quality can result in delays, increased costs, and loss of business. However, there is a lack of comprehensive studies examining the specific impact of service quality on the performance of the maritime sector in Nigeria.
Most existing research focuses on broader economic implications or individual operational challenges without a detailed analysis of service quality dimensions and their direct effects on sector performance (Adewuyi, 2011; Ugboma, Ibe & Ogwude, 2004). This gap in the literature highlights the need for a focused investigation into how service quality influences the performance of the maritime sector in Nigeria.
Objective of the study
The objective of this study is to examine the effect of service quality on the performance of the maritime sector in Nigeria. To achieve this, the study aims to:
- Determine the key dimensions of service quality relevant to the Nigerian maritime sector.
- Evaluate how variations in service quality affect the operational efficiency of Nigerian ports and shipping operations.
- Investigate the relationship between service quality and customer satisfaction in the maritime sector
Research Hypotheses
H1: there is no key dimensions of service quality relevant to the Nigerian maritime sector
H2: there is no relationship between service quality and customer satisfaction in the maritime sector
Significance of the study
The maritime sector is integral to Nigeria’s economy, acting as a vital conduit for international trade and economic development. The significance of this study on the effect of service quality on maritime sector performance in Nigeria can be understood through several key points:
By identifying and addressing the critical dimensions of service quality, this study will provide insights into how operational efficiencies can be improved. Better service quality can lead to reduced turnaround times for ships, streamlined cargo handling, and more efficient port operations, ultimately reducing operational costs.
Understanding the relationship between service quality and customer satisfaction is crucial. This study will help maritime businesses and port authorities in Nigeria to enhance customer experiences, leading to increased customer loyalty. Satisfied customers are more likely to return and recommend the ports to others, thus boosting business.
The findings of this study can inform strategies that enhance the performance of the maritime sector, which is pivotal for Nigeria’s trade and economic growth. Improved service quality can attract more international shipping lines and investors, thereby increasing the sector’s contribution to the national GDP and enhancing Nigeria’s competitiveness in global trade.
Policymakers can benefit from the study by gaining a clearer understanding of the specific areas needing regulatory and infrastructural improvements. The recommendations provided can assist in the formulation of policies that support sustainable development of the maritime sector, addressing issues like corruption, regulatory inefficiencies, and infrastructural deficits.
For maritime businesses, port authorities, and other stakeholders, the study offers practical insights and strategies for improving service quality. This can aid in strategic planning and decision-making processes, ensuring that investments and efforts are directed towards initiatives that yield the highest improvements in performance.
Scope of the study
The scope of the study covers effect of service quality on maritime sector performance in Nigeria. The study will be limited to seaport Onne
Limitation of the study
While this study aims to provide a comprehensive analysis of the effect of service quality on the performance of the maritime sector in Nigeria, several limitations must be acknowledged:
- Data Availability and Quality: The availability and reliability of data may pose significant challenges. Accurate and up-to-date data on service quality metrics, operational performance, and customer satisfaction in the Nigerian maritime sector might be limited or difficult to obtain. This could affect the depth and accuracy of the analysis.
- Scope of the Study: The study focuses on major ports in Nigeria, such as Lagos, Port Harcourt, and Calabar. As a result, findings may not be fully representative of smaller or less busy ports, leading to a potential bias in the results. The unique challenges and service quality issues in these smaller ports may differ from those in the larger ones.
- Subjectivity in Service Quality Measurement: Measuring service quality can be inherently subjective, relying on perceptions of different stakeholders, including shipping companies, port authorities, and customers. Variability in these perceptions can introduce bias and affect the consistency of the results.
Definition of terms
- Maritime Sector: The collective term for all activities related to the transportation of goods and passengers by sea. This includes port operations, shipping services, logistics, and supporting services such as customs and regulatory oversight.
- Service Quality: A measure of how well the delivered service meets customers’ expectations. It is typically evaluated across dimensions such as reliability, responsiveness, assurance, empathy, and tangibles.
- Operational Efficiency: The ability of the maritime sector to maximize output with minimal waste, effort, or expense. This includes reducing turnaround times for ships, optimizing cargo handling processes, and minimizing operational costs.
- Customer Satisfaction: The degree to which customers are pleased with the services provided by the maritime sector. High customer satisfaction often leads to repeat business and positive word-of-mouth referrals.
References
- Stopford, M. 1997. Maritime Economics. 2nd Edition. London: Routledge.
- UNCTAD. 2012. “World Investment Report 2012: Towards a New Generation of Investment Policies.” United Nations Conference on Trade and Development, New York and Geneva. [
- Otteboom, T., and Rodrigue, J. P. 2004. “Inland Freight Distribution and the Sub-harborization of Port Terminals.” Paper presented at the ICLSP Conference, Dalian. [11]
- Langen, P., and Van Der Horst, M. R. 2007. “Coordination in Hinterland Transport Chains: A Major Challenge for the Seaport Community.” International Association of Maritime Economists (IAME), Annual Conference Arthens 4-6. [12]
- UNCTAD. 1998. “Handbook for Port Plannersin Developing Countries.” [13] De Langen, P. W., and Chouly, A. 2004. “Hinterland Access Regimes in Seaports.” European Journal of Transport and Infrastructure Research 4 (4): 361-81. [14]
- Hulland, J. 1999. “Use of PLS in Strategic Management Research: A Review of Four Recent Studies.” Strategic Management Journal 20 (2): 195-204.
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