Port Digitalization and Logistics Value Creation: An Exploratory Factor Analysis of Logistics Performance Determinants

Abstract

Digital technology is altering how ports work today leading to more efficient logistics and an increased competitive advantage for maritime supply chains. This paper is devoted to exploring the various ways that the digital transformation of the port sector creates value in logistics. A quantitative survey of participants in port-related logistics activities was conducted. In total, 187 valid responses were obtained from individuals employed in logistics companies, port authorities, freight forwarders, and supply chain management. The data were analyzed using an exploratory factor analysis involving principal axis factoring and Varimax rotation. The factor analysis yielded evidence for four broad dimensions that make up the relationship between digitalization of ports and logistics value creation: (1) information integration & logistics coordination, (2) digitalization of port operations, (3) port logistics performance, and (4) value creation in logistics. The results indicate the critical role that digitalization has played in facilitating greater information sharing, improving operational efficiency, and enhancing the overall performance of port-based logistics systems. This research will add to the body of research on the digital transformation of logistics in the maritime industry by providing an empirical classification of the dimensions that relate to the digitalization of ports and providing some insights into the practicality of using digital technologies to enhance the logistics performance of port operations and the businesses that utilize them.