Kevin Cullinane, Rickard Bergqvist, Sharon Cullinane, Shengda Zhu and Linkai Wang
The purpose of this paper is to provide a theoretical conceptualization of how data envelopment analysis (DEA) can be applied to rail freight rolling stock in order to develop a…
Abstract
Purpose
The purpose of this paper is to provide a theoretical conceptualization of how data envelopment analysis (DEA) can be applied to rail freight rolling stock in order to develop a tariff for track access charges which is functionally dependent upon the derived relative benchmark values of performance.
Design/methodology/approach
It is posited that track access charges should be differentiated to reflect differences in the performance of rolling stock and that this can be achieved purely on the basis of technical and other characteristics. The performance benchmarking of rolling stock is proposed as the basis for formulating and justifying a performance-based tariff structure. Using DEA, relative index measures of rolling stock performance can be derived, benchmark performance can be identified and a tariff structure can be developed.
Findings
A workable approach to implementing the concept, utilizing existing in-house databases, is found to be feasible and a template for tariff setting is established.
Research limitations/implications
In the absence of access to in-house technical data on rolling stock, which is commercially sensitive, no empirical application of the concept is possible.
Originality/value
There are many ways to improve the efficiency of a railway system. Many are inherently long term and involve significant investment. Using Sweden as an example, this paper proposes the more immediate, simpler and cheaper approach of incentivising the use of better rolling stock through appropriate track access charging. Such an approach should reduce the number of problems arising on the rail network and the costs imposed on other rail users, the infrastructure providers and society. Ultimately, the implementation of this approach would support the objective of increasing long-term robustness and reducing disruptions to railways.
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Jason Monios and Rickard Bergqvist
The purpose of this paper is to analyse vertical integration in the rail sector using a combination of transaction cost economics (TCE), the resource-based view (RBV) and the…
Abstract
Purpose
The purpose of this paper is to analyse vertical integration in the rail sector using a combination of transaction cost economics (TCE), the resource-based view (RBV) and the relational view, through which rail wagons are viewed as “relationship specific assets”.
Design/methodology/approach
The empirical analysis is based on a cross-case comparison of four case studies of intermodal operators in Europe, each exhibiting different levels of collaboration and integration between terminals, operators and sub-contractors.
Findings
Viewing rail wagons as relationship specific assets rather than merely transaction specific (TCE) or firm specific (RBV) demonstrates that wagon ownership is not only a good indicator of the level of vertical cooperation but of the existence of trust and learning within a collaborative environment.
Practical implications
The organisational setup is not derived purely from transaction or resource characteristics, but by the integration of processes through the purchase of assets that will be used to produce a service, with the expected levels of trust and commitment. In this sense, the role of the wagon as a relationship specific asset is a microcosm of the key elements of a successful intermodal transport system.
Originality/value
As one of the key operational aspects of the rail sector is the use of expensive equipment and the relative responsibility for fixed and moveable assets, an analysis of the use of rail wagons as relationship specific assets allows a more dynamic understanding of vertical integration in the rail sector than currently provided by TCE or RBV alone.
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Jason Monios and Rickard Bergqvist
This paper aims to examine a strategic alliance between a large shipper and a freight forwarder to provide an intermodal service to and from the port of Gothenburg. The supply…
Abstract
Purpose
This paper aims to examine a strategic alliance between a large shipper and a freight forwarder to provide an intermodal service to and from the port of Gothenburg. The supply chain literature discusses various models of supply chain collaboration and integration. When applied to logistics, each has been shown to exhibit different levels of success depending on particular factors.
Design/methodology/approach
The methodology is a single in-depth case paper based on action research, interviews and document analysis.
Findings
According to this innovative model, a new entity is not set up but an open-book basis is established, long-term contracts with other parties are signed, risks and profits are shared and the shipper makes several investments specific to the service. Thus, the benefits of a joint venture are obtained without needing to establish a new organisation, thereby sacrificing flexibility and independence.
Research limitations/implications
A limitation of this study is that it is based on a single case of best practice; it may be difficult to replicate the high levels of trust in other situations. Nevertheless, the evident success of this “virtual joint venture” suggests that some elements are transferable to other cases, and the model may be refined through additional case analysis.
Practical implications
Results indicate several advantages of this “virtual joint venture” model, including risk sharing, knowledge development, long-term service stability and diversification of activities, which all contribute to facilitating the shift of a large customer from road haulage to intermodal transport. Potential challenges mainly relate to contractual complexity.
Originality/value
This paper identifies an innovative business model for logistics integration that can be used in future in other cases to make modal shift more attractive and successful, which is a key aim of government policy in many countries.
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Afzal Mohammad Khaled and Yong Jin Kim
Logistical facility location decisions can make a crucial difference in the success or failure of a company. Geographical Information Systems (GIS) have recently become a very…
Abstract
Logistical facility location decisions can make a crucial difference in the success or failure of a company. Geographical Information Systems (GIS) have recently become a very popular decision support system to help deal with facility location problems. However, until recently, GIS methodologies have not been fully embraced as a way to deal with new facility location problems in business logistics. This research makes a framework for categorizing empirical facility location problems based on the intensity of the involvement of GIS methodologies in decision making. This framework was built by analyzing facility location models and GIS methodologies. The research results revealed the depth of the embracement of GIS methodologies in logistics for determining new facility location decisions. In the new facility location decisions, spatial data inputs are almost always coupled with the visualization of the problems and solutions. However, the usage of GIS capability solely (i.e. suitability analysis) for problem solving has not been embraced at the same level. In most cases, the suitability analysis is used together with special optimization models for choosing among the multiple alternatives.
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This paper aims to develop and test a new way of modeling airline operations and apply it to measure and compare the efficiency of international airlines, with a special focus on…
Abstract
This paper aims to develop and test a new way of modeling airline operations and apply it to measure and compare the efficiency of international airlines, with a special focus on deregulation effects. The paper elaborates on the choice of variables, following the early work of Schefczyk (1993) and Scheraga (2004). The value chain of the airlines determines the variables included in three different models. Using data envelopment analysis, the efficiency scores show that North American airlines are more efficient in producing services offered to customers. Few differences are found between regions in allocating service output to match demand. One plausible explanation for this difference is that airlines operate within competitive environments. In a highly competitive market, management decisions focus on productive actions and cost reduction. In a less competitive environment, there is a higher degree of adjustments of the services produced. Using the Malmquist productivity index, measurements reveal that there is a catch-up effect for the European and Asian/South American airlines service production during the studied time period, which was from 1990 to 2003.
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The purpose of this paper is to present the findings of a bibliometric analysis of the evolution and structure of business model research in industrial marketing scholarship…
Abstract
Purpose
The purpose of this paper is to present the findings of a bibliometric analysis of the evolution and structure of business model research in industrial marketing scholarship during the period between 2011 and 2020 and to discuss potential directions for future empirical research.
Design/methodology/approach
Bibliometric methodologies are deployed to objectively evaluate the business model research that has made the most impact within industrial marketing scholarship as well as the prominent scholars and key topics driving the discipline at points in time.
Findings
The findings demonstrate the formative but increasing engagement that industrial marketing scholarship has had with business model literature and the limited but increasing degree that business models have influenced industrial marketing literature. Potential directions for the empirical development of business model literature are argued to lie in the areas of collaboration and coopetition by examining the notion of value within the relationships, interactions and/or networks evidenced in European seaports business models.
Research limitations/implications
Bibliometric analysis is retrospective in nature so developments in the literature appear only after some time has elapsed. Different keyword selection when formulating search strings for sampling may have brought some deviations in the analysis.
Originality/value
Research that investigates the link between business models and industrial marketing is still scarce. This paper is among the few that analyze objectively the evolution and structure of business model literature in industrial marketing scholarship from a longitudinal perspective with a particular emphasis on the period between 2011 and 2020.