Big ships, massive liner alliances, upsizing : Are they working ?
Ng, Jacky Chin Soon
Date of Issue2016
School of Civil and Environmental Engineering
Purpose: This paper mainly aims to analyse whether cultural differences between container companies within the G6 alliance will lead to the failure of G6 Alliance. Nonetheless, it also aims to analyse whether the phenomenon of bigger ships will continue in G6 Alliance. Methodology: Scholarly articles from international researchers in the field and past alliance cases were reviewed to derive two hypotheses on how cultural differences may lead to a failed G6 liner alliance. Following which, together with some other questions, surveys were administered on 40 participants, consisting of executives in the liner industry in which 19 survey responses were received and subjected to T-tests. Subsequently, three interviews with senior management in the liner industry were conducted to gather their views on the hypotheses and the questions. Research Findings: To a small extent, cultural differences between container companies within the G6 Alliance will lead to a failed G6 Alliance. Culture plays a small part in the grand scheme of things while other factors such as financial considerations, operational considerations and political considerations might play a bigger role in resulting to a failed G6 Alliance. Meanwhile, the phenomenon of upsizing of container ships will continue albeit a slower speed for G6 Alliance. Research Implications: Although the framework is specifically targeting through G6 Alliance’s perspective, it may be applicable for other liner alliances as well. Research Limitations & Future Directions: Due to time constraints, the research is mainly targeting on G6 Alliance. Therefore, future research can focus more on other liner alliances. As the paper is skewed towards qualitative analysis with an empirical emphasis, a regulated corporate communication policy may affect the level of honest feedback from the interviewees and surveyees. Furthermore, it may not be straightforward to compare the survey results as respondents vary in their demographics in terms of experience. Future research can aim to gather feedbacks from a larger survey group in order to gather responses from different demographic groups. Paper Type: Research Paper
Final Year Project (FYP)
Nanyang Technological University