A Qualitative Examination of Relational and Contractual Governance Mechanisms in Aliağa Port Cluster

Abstract

The rising importance of port-port user relations is a result of widening roles that ports play within the global supply chains and the increasing impact of these relations on the overall performance of the supply chains. In the governance of these relations, both contractual governance and relational governance play the role and the balance between these two governance mechanisms shapes the characteristics and the quality of the relationship. Focusing on the container terminal-liner shipping agency relations in Aliaga as multiple cases, this study aims to investigate how governance mechanisms are handled in the port industry and how the interplay between these two mechanisms occurs. In accordance with this purpose, interviews are conducted with both representatives of the container terminals and representatives of liner shipping agencies in order to reveal the governance dynamics of said relations. The results reveal that relational governance plays an important role in constituting trust and commitment in between parties. On the other hand, the tendency to rely on contractual governance is found out to be mainly related to the organizational culture of the parties, but relatively limited because of the intense competition in the region.

Keywords

• Contractual Governance
• Relational Governance
• Relational Norms
• Port
• Container Terminal