The Correlation Between Organizational Characteristics and Performance of African Ports: The Moderating Effect of Governance Reforms

Abstract

The main objective of this study was to determine the moderating effect of governance reforms on the relationship between organizational characteristics and organizational performance. Structured questions in the form of questionnaires were employed to collect primary data targeting executive managers of 54 container-handling seaport terminals in Anglophone Africa who are conversant with port operations and management. Some data was also obtained from the websites of the ports and regional port management Associations. The response rate was 83.6%. Out of these responses, 46 terminals (78%) were found to have adopted the landlord model while 10 terminals (22%) were found to be using the public service model of operations. The reliability and validity of the indicator items were ascertained through diagnostic tests. Model fitness was confirmed by the use of Standard Root Means Square Residual (SRMR) and Normed Fit Index (NFI). Partial Least Squares Structural Equation Modelling (PLS-SEM) using Smart-PLS 4.0 software was used for data analysis and measurement model estimation to test hypothesis which stated that there is no significant moderating effect of governance reforms on the relationship between organizational characteristics and the performance of seaports in Anglophone Africa. The findings established positive and significant moderating effect of governance reforms on the relationship. The study concluded that the landlord model of governance reforms enhances performance thereby creating competitive advantage for ports in Anglophone African. The study also finds that seaports in Africa, seen from both theoretical and empirical point of view are increasingly identifying themselves with port governance reform models. The study recognizes that the landlord model of port governance is dominant amongst African seaports and concludes with the recommendation that all African seaports that are still operating as public service ports should reform and adopt especially the landlord model in order to experience remarkable performance improvement and maintain competitive advantage.