Digitalization and Performance Management Systems: A Shipping Agency Case Study

Journal title MANAGEMENT CONTROL
Author/s Assunta Di Vaio, Luisa Mastellone, Luigi Lepore, Luisa Varriale
Publishing Year 2024 Issue 2024/2 Suppl.
Language English Pages 25 P. 173-197 File size 288 KB
DOI 10.3280/MACO2024-002-S1009
DOI is like a bar code for intellectual property: to have more infomation click here

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

This study examines how the digitalization of information processes embraced by shipping intermediaries (i.e. shipping agencies) within supply chain management (SCM) changes performance management systems (PMSs). This exploratory study uses the lens of stakeholder theory and adopts a case study methodology to investigate a shipping agency based in Italy. It uses primary data collected from semi-structured interviews and secondary data. The data were collected from No-vember 2022 to March 2023. The results indicate that the digitalization of infor-mation accounting processes has boosted the adoption of key performance indi-cators (KPIs) to monitor and evaluate the effectiveness and efficiency of opera-tional processes. The results also reveal that, in the agency relationship between agent and shipowner, the agent does not use the benefits of PMSs to identify stra-tegic KPIs for the business. This study highlights that when adopting PMSs in ship-ping agencies, it is necessary to include both an information accounting and an organizational dimension. Managers should be involved in training programs sup-porting a culture of sharing information through digitalized systems. The main lim-itation of this study, due to its exploratory nature, is the lack of analysis including the shipowner’s perspective and the impossibility of generalizing based on the re-sults. To the best of our knowledge, this is the first study to investigate digitaliza-tion, PMSs, and SCM in terms of the organizational-accounting frameworks of shipping agencies.

Keywords: Digitalization, Performance Management Systems (PMSs), Shipping Intermediaries, Shipping Industry, Stakeholder Theory, Key Performance Indica-tors (KPIs).

  1. Clott C.B. (2000), Ocean Freight Intermediaries: An Analysis of Non-Vessel Operating Common Carriers (NVOCC’s) and Maritime Reform, Transportation Journal, 40(2), pp. 17-26.
  2. Gibbert M., Ruigrok W., Wicki B., (2008), What passes as a rigorous case study?, Strategic Management Journal, 29(13), pp. 1465-1474.
  3. Glesne C., Peshkin A. (1992), Becoming qualitative researchers. White Plains, NY.
  4. Goulielmos A., Mitroussi K., Gatzoli A. (2008), Marine accidents: quality vs safety and one step further, International Journal of Ocean Systems Management, 1(1), pp. 45-67.
  5. Amaratunga D., Baldry D. (2002), Moving from performance measurement to performance management, Facilities, 20(5/6), pp. 217-223.
  6. Attaran M. (2020), Digital technology enabòers and their implication for supply chain management, Supply Chain Forum: An International Journal, 21(3), pp. 158-172.
  7. Balci G. (2021), Digitalization in container shipping: Do perception and satisfaction regarding digital products in a non-technology industry affect overall customer loyalty?, Technological Forecasting and Social Change, 172, 121016.
  8. Bichou K., Bell M.G.H. (2007), Internationalisation and Consolodation of the Container Port Industry: Assessment of Channel Structure and Relationships, Maritime Economics & Logistics, 9, pp. 35-51.
  9. Bititci U.S., Turner U., Begermann C. (2000), Dynamics of performance measurement systems, International Journal of Operations & Production Management, 20(6), pp. 692-704.
  10. Bourne M., Neely A.D. (2003), Why some performance measurement initiatives fail: Lessons from the change management literature, International Journal of Performance Management, 5(2), pp. 246-269.
  11. Büyüközkan G., Göçer F. (2018), Digital Supply Chain: Literature Review and a Proposed Framework for Future Research, Computers in Industry, 97, pp. 157-177.
  12. Cagnazzo L., Taticchi P., Brun A. (2010), The role of performance measurement systems to support quality improvement initiatives at supply chain level, International Journal of Productivity and Performance Management, 59(2), pp. 163-185.
  13. Calderon-Monge E., Ribeiro-Soriano D. (2024), The role of digitalization in business and management: a systematic literature review, Review of Managerial Science, 18(2), 449-491.
  14. Chen D.Q., Preston D.S., Swink M. (2015), How the use of big data analytics affects value creation in supply chain management, Journal of Management Information Systems, 32(4), pp. 4-39.
  15. Cinquini L., Mitchell F., Nørreklit H., Tenucci A. (2013), Methodologies for managing performance measurement, In The Routledge Companion to Cost Management (pp. 360-380), Routledge.
  16. Corsi K., Mancini D., Piscitelli G. (2017), The integration of management control systems through digital platforms: A case study, In Reshaping Accounting and Management Control Systems: New Opportunities from Business Information Systems (pp. 131-151). Springer International Publishing.
  17. Crawford M. (2017), The role of technology in the UN SDGs, Part two.
  18. Crotty M.J. (1998), The foundations of social research: Meaning and perspective in the research process, The foundations of social research, pp. 1-256.
  19. D’Onza G., Lamboglia R., Verona R. (2015), Do IT audits satisfy senior manager expectations? A qualitative study based on Italian banks, Managerial Auditing Journal, 30(4/5), pp. 413-434.
  20. Davenport T.H. (1998), Putting the enterprise into the enterprise system, Harvard business review, 76(4).
  21. Di Vaio A, Latif B, Gunarathne N, Gupta M, D’Adamo I (2023), Digitalization and artificial knowledge for accountability in SCM: a systematic literature review, Journal of Enterprise Information Management, 37(2), pp. 606-672.
  22. Di Vaio A., Varriale L. (2020a), Blockchain technology in supply chain management for sustainable performance: evidence from the airport industry, International Journal of Information Management, 52, 102014.
  23. Di Vaio A., Varriale L. (2020b), Digitalization in the sea-land supply chain: experiences from Italy in rethinking the port operations within inter-organizational relationships, Production Planning & Control, 31(2-3), pp. 220-232.
  24. Duan Y, Edwards J.S., Dwivedi Y.K. (2019), Artificial intelligence for decision making in the era of Big Data–evolution, challenges and research agenda, International Journal of Information Management, 48, pp. 63-71.
  25. Dubey R., Bryde D.J., Dwivedi Y.K., Graham G., Foropon C. (2022), Impact of artificial intelligence-driven big data analytics culture on agility and resilience in humanitarian supply chain: a practice-based view, International Journal of Production Economics, 250, 108618.
  26. Eisenhardt K.M. (1989), Building theories from case study research, The Academy of Management Review, 14(4), pp. 532-550.
  27. EU Commission (2021), EU Countries commit to leading the green digital transformation, viewed 19 April 2023, -- https://digital-strategy.ec.europa.eu/en/news/eu-countries-commit-leading-green-digital-transformation.
  28. Ferreira A., Otley D. (2009), The design and use of performance management systems: An extended framework for analysis, Management Accounting Research, 20(4), pp. 263-282.
  29. Ferreira P.S.A. (2024), Developing a roadmap for implementing digital transformation to improve the resilience of port operations, International Journal of Scientific Management and Tourism, 10(3), e888-e888.
  30. Freeman R.E., Harrison J.S., Wicks A.C., Parmar B.L., De Colle S. (2010), Stakeholder theory: The state of the art, Cambridge University Press.
  31. Freeman RE. (1984), Strategic Management: A Stakeholder Approach, Pitman Publishing, Boston, MA.
  32. Furlong M. (2010), Clear at a distance, jumbled up close: Observation, immersion and reflection in the process that is creative research, In P. Liamputtong (Ed.), Research methods in health: Foundations for evidence-based practice (pp. 153-169). South Melbourne, Australia: Victoria Oxford University Press.
  33. Ghobakhloo M., Iranmanesh M., Tseng M.L., Grybauskas A., Stefanini A., Amran A., (2023), Behind the definition of Industry 5.0: a systematic review of technologies, principles, components, and values, Journal of Industrial and Production Engineering, 40(6), pp. 432-447.
  34. Granlund M., Mouritsen J. (2003), Special section on management control and new information technologies, European Accounting Review, 12(1), pp. 77-83.
  35. Gray J., Rumpe B. (2015), Models for digitalization, Software & Systems Modeling, 14, pp. 1319-1320.
  36. Gunasekaran A., Patel C., McGaughey RE. (2004), A framework for supply chain performance measurement, International Journal of Production Economics, 87(3), pp. 333-347.
  37. Gupta M., George J.F. (2016), Toward the development of a big data analytics capability, Information and Management, 53(8), pp. 1049-1064.
  38. Heilig L., Lalla-Ruiz E., Voß S. (2017), Digital transformation in maritime ports: analysis and a game theoretic framework, Netnomics: Economic research and electronic networking, 18(2), pp. 227-254.
  39. Holmström J., Holweg M., Lawson B., Pil F.K., Wagner S.M. (2019), The digitalization of operations and supply chain management: Theoretical and methodological implications, Journal of Operations Management, 65(8), pp. 728-734.
  40. Karimi J., Walter Z. (2015), The role of dynamic capabilities in responding to digital disruption: a factor-based study of the newspaper industry, Journal of Management Information Systems, 32(1), pp. 39-81.
  41. Klerkx L., Aarts N. (2013),The interaction of multiple champions in orchestrating innovation networks: conflicts and complemetarities, Technovation, 33(6-7), pp. 193-210.
  42. Kuo H.M., Chen T.L., Yang C.S. (2022), The effects of institutional pressures on shipping digital transformation in Taiwan, Maritime Business Review, 7(2), pp. 175-191.
  43. Lambrou M., Watanabe D., Iida J. (2019), Shipping digitalization management: conceptualization, typology and antecedents, Journal of Shipping and Trade, 4(1), 1-17.
  44. Latour B. (2005), Reassembling the Social, Oxford University Press, Oxford.
  45. Lichtenthaler U. (2013), The collaboration of innovation intermediaries and manufacturing firms in the markets for technology, Journal of Product Innovation Management, 30, pp. 142-158.
  46. Mancini D. (2016), Accounting information systems in an open society: Emerging trends and issues, Management Control, 1, pp. 5-16. DOI: 10.3280/MACO2016-001001
  47. Mancini D., Lombardi R., Tavana M. (2021), Four research pathways for understanding the role of smart technologies in accounting, Meditari Accountancy Research, 29(5), pp. 1041-1062.
  48. Mancini D., Piscitelli G. (2018), Performance measurement systems in business networks: a literature review, International Journal of Business Performance Management, 19(1), pp. 87-104.
  49. Marchi L. (2011), L’evoluzione del controllo di gestione nella prospettiva informativa e gestionale esterna, Management Control, 3, pp. 5-16. DOI: 10.3280/MACO2011-003001
  50. Neely A.D. (1994), Performance measurement system design – third phase, Performance Measurement System Design Workbook, 1.
  51. Neely A.D. (1999), The performance measurement revolution: Why now and what next?, International Journal of Operations & Production Management, 19(2), pp. 205-228.
  52. Nikitakos N., Lambrou M.A. (2007), Digital shipping: the Greek experience, Research in Transportation Economics, 21, pp. 383-417.
  53. Norreklit H., Cinquini L. (2023), Introduction to the Special Issue of Journal of Management and Governance:“Performance, management and governance in the digital age”, Journal of Management and Governance, 27, pp. 689-693.
  54. Otheitis N., Kunc M. (2014), Performance measurement adoption and business performance. An exploratory study in the shipping industry, Management Decision, 53(1), pp. 139-159.
  55. Otley D. (1999), Performance management: a framework for management control systems research, Management Accounting Research, 10, pp. 363-382.
  56. Pargmann J., Riebenbauer E., Flick-Holtsch D., Berding F. (2023), Digitalisation in accounting: a systematic literature review of activities and implications for competences, Empirical Research in Vocational Education and Training, 15(1), 1.
  57. Proctor C. (1997), The Legal Role of the Bill of Lading, Sea Waybill and Multimodal Transport Document, Interlegal, Pretoria.
  58. Procurement Executives’ Association (US), 1998. Guide to a Balanced Scorecard: Performance Management Methodology: Moving from Performance Measurement to Performance Management (Vol. 1). US Department of Commerce.
  59. Quattrone P., Hopper T. (2005), A ‘time-space odyssey’: management control systems in two multinational organisations, Accounting, organizations and society, 30(7-8), pp. 735-764.
  60. Quitzau J., Tontara N., Vöpel H., Jahn M., Otto A.H, Wolf A. (2018), Shipping in an era of digital transformation (No. 25e), Strategy 2030-Capital and Life in the Next Generation.
  61. Rotondo F., Corsi K., Giovanelli L. (2019), The social side of sustainable business models: An explorative analysis of the low-cost airline industry, Journal of Cleaner Production, 225, pp. 806-819.
  62. Sahlin J., Angelis J. (2019), Performance management systems: reviewing the rise of dynamics and digitalization, Cogent Business & Management, 6(1), 1642293.
  63. Saleheen F., Habib M.M., Hanafi Z. (2018), Supply Chain Performance Measurement Model: A Literature Review, International Journal of Supply Chain Management, 7(3), pp. 70-78.
  64. Scapens R.W. (2004), Doing Case Study Research, in: C. Humphrey & B. Lee (Eds.). The real life guide to accounting research. A Behind-the-Scenes View of Using Qualitative Research Methods, pp. 257–279, Oxford.
  65. Siggelkow N. (2007), Persuasion with case studies, Academy of Management Journal, 50(1), pp. 20-24.
  66. Stewart J., Hyysalo S. (2008), Intermediaries, users and social learning in technological innovation, International Journal of Innovation Management, 12(3), pp. 295-325.
  67. Surucu-Balci E., Iris Ç., Balci G. (2024), Digital information in maritime supply chains with blockchain and cloud platforms: Supply chain capabilities, barriers, and research opportunities, Technological Forecasting and Social Change, 198, 122978.
  68. Tijan E., Jović M., Aksentijević S., Pucihar A. (2021), Digital transformation in the maritime transport sector, Technological Forecasting and Social Change, 170, 120879.
  69. Triantafylli A., Ballas A. (2010), Management control systems and performance: evidence from the Greek shipping industry, Maritime Policy & Management, 37(6), pp. 625-660.
  70. Voss C., Tsikriktsis N., Frohlich M. (2002), Case research in operations management, International Journal of Operations & Production Management, 22(2), pp. 195-219.
  71. Xu X., Lu C., Cui J. (2019), The Impact of Digitalization on the Performance Management of Intermediaries in the Shipping Industry. Proceedings of the 2nd International Conference on Industrial Economics System and Industrial Security Engineering, pp. 556-560.
  72. Yin R.K. (1981), The case study crisis: some answers, Administrative Science Quarterly, 26(1), pp. 58-65.
  73. Yin R.K. (1994), Discovering the future of the case study method in evaluation reasearch, Evaluation Practice, 15(3), pp. 283-290.
  74. Yin R.K. (2006), Case study methods, in Green, J.L., Camilli, G. and Elmore, P.B. (Eds), Complementary Methods in Education Research, Lawrence Erlbaum Associates, Hillsdale, NJ, pp. 111-122.
  75. Zhai H., Yang M., Chan K.C. (2022), Does digital transformation enhance a firm’s performance? Evidence from China, Technology in Society, 68, 101841.

Assunta Di Vaio, Luisa Mastellone, Luigi Lepore, Luisa Varriale, Digitalization and Performance Management Systems: A Shipping Agency Case Study in "MANAGEMENT CONTROL" 2 Suppl./2024, pp 173-197, DOI: 10.3280/MACO2024-002-S1009