Barriers to the Development of Port Operator Supply Chain Integration: An Evaluation in a Developing Country

In this multimethod research, we build on the customer portfolio literature to theorize a two-dimensional matrix between the strategic importance of a port operator's customers and the customers' perceptions of the port operator's supply chain integration (SCI). The matrix highlights two mismatches: (1) important customers do not perceive a high degree of port operator SCI; and (2) low-importance customers perceive a high degree of port operator SCI. In the former, the port operator's investments are wasted, while in the latter the port operator reaps benefits from minimal investments. In our first study, we classify 1,441 customers of a Brazilian port operator into three levels of strategic importance: high, medium, and low. A survey instrument sent to these customers measured the perceived port operators' SCI by 210 customers, and the analysis revealed a mismatch for 76 percent of the companies. The second study examines the reasons for the mismatch. Semi-structured interviews highlighted that the perceived unfairness of the port operator's operational decision making and negative experiences with other supply chain members negatively affected the SCI perceptions of customers. We also found a spill-over effect: low-importance customers perceived a high level of SCI due to the port operator's operational investments in its important customers.