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1189 Int. J Sup. Chain. Mgt Vol. 9, No. 4, August 2020 Competitive Advantage and its Supply Chain Strategy for Performance of Shipping Agents at Penang Port, Malaysia Afifah Abd Razak1, Shankar Chelliah1 1School of Management, Universiti Sains Malaysia, 11800 Gelugor, Pulau Pinang, Malaysia *Corresponding author: [email protected] Abstract— The management of arrival and departure relationship with many countries that are well of ships at Penang Port needs the shipping agent for known for controlling the power port in the world increasing global competitiveness and a source of such as Shanghai, Bahamas, and more. World income for developed countries. Of these, the primary Trade Organization (WTO) has shown a drastic purpose of this study is to analyse the relationship increase in maritime trade around 2008 and 2009. between competitive advantage, management knowledge, social networking and performance The total value of world trade in the decade up mediated by internationalization. A self-administered to 34 billion tons of goods loaded into shipping questionnaire was adopted to perform a systematic cargo through the system as a major transport collection of data from shipping agents and shipping freight by sea. 9.8% increase in the number of sea organisations in Penang Port. The partial least transport in 2009 has been handled by various types squares method was used for the conceptual of merchant ships from all over the world (United framework of the study. In conclusion, the Nations Conference on Trade and Development, competitive advantage and performance of 2014). Growth and improvements to the vessel's international shipping agents in Penang wellbeing at point of its features are very encouraging better for workplace and environment around. The presented research carefully developed and designed to fulfil the clean shipping companies to demonstrate the proposed objectives, but this study still has certain performance of each company in the commercial limitations. These limitations should be considered to world, especially boost demand for services using accomplish practical research in the future. As an international shipping agency in Penang. This mentioned, this study shipping agent a cross-sectional phenomenon is triggered due to an increase in design. The authors believe that competitive Penang shipbuilding industry in recent years. Sea advantage and performance of international shipping transport, in general, is encouraged to transport agents using empirical data from the port at Penang, commercial cargo as it can provide convenient as well as that this research is an important emerging service for large capacity cargo delivery to the topic for researchers, academicians and practitioners. customer [2]. Transportation costs and the cost of Keywords—Competitive advantage, supply chain services between the ports to other ports will vary strategy, management knowledge, social networking, according to the exchange rate at the time of a internationalization, government initiative and country. performance Shipping agent prefers to trade and economic 1. Introduction growth as they are the middlemen who connect to the port before the ship's captain and from the port The international shipping services at Pulau Pinang during the last and next to the port for the needs the shipping agent for increasing global movement of the ship in case of unexpected events competitiveness and have a source of income for such as oil leaks or accidents. In [3]-[4], they developed countries this decade. Also, many studied the ways of appealing to handle large international shipping agency services involved volumes of cargo and take the largest share of with the regulations issued by government agencies cargo is 75% of total world trade. International such as immigration, customs, and marine shipping agents around the ports that have been department at the port of Penang and they play an gazette is classified as a strategic resource in important role in providing efficient services better. generating regional economies booming and International shipping agent should have a good profitable company in the context of ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/) 1190 Int. J Sup. Chain. Mgt Vol. 9, No. 4, August 2020 internationalization. International shipping agents shipping agent has proud of the efficiency of their play an important role in performance, particularly services. For example, manages the ship docked in terms of competitiveness of the regional period in less than 10 hours. Penang Port is the port economic development [5]. The shipping agent in where it has a strategy in sea level that could allow Shanghai has developed by Yangtze River Delta as large ships to dock at the terminal close to the a centre for trade strategy which is controlled by stevedores went smoothly. Peanut high productivity the shipping agent proficient with connecting river per meter jetty and the number of annual Pearl River Delta (PRD) into a transit cargo as well transactions is 8 million [9]. Renowned as a trading as being the main reason for the increase in agent port with excellent service and efficient by service port in Shenzhen and Guangzhou in the international shipping agents in Penang, was in future the same in practice by the shipping agent recognition of this port as a port to 4 busiest in based in Hong Kong and Singapore. Malaysia. Shipping agent in Penang also has increased by Current factors that help and encourage the providing management of all aspects of entry of ships from overseas have established to international port and shipping agent in Penang determine the difference, and these factors are serves as a driving force in the economy in which crucial to help and guide the international shipping the port is under the authority of Penang Port Sdn agent in terms of competitiveness and performance Bhd and Penang Port Commission. World Bank of the best. The internationalization of shipping study shows that the ratio of direct revenue from agents and their impact on the performance of the port operations and trade for sea transport of least understood and least used. Shipping agent in activities related to the shipping agent is 1: 5 and Penang has faced many competitors among several the ratio of the work in the port carried out by shipping agents developed to provide the best workers indirectly is about 1: 9 [6]. The same ship service to increase the number of customers who will also carry the merchandise to another port by use their services. Therefore, it is important to dividing cargo to other ships. Furthermore, understand the competitive advantage of shipping ancillary services such as the repair of the container agents other. It also aims to give an overview of the shipping agent, storage, delivery, repair damaged main influence and competitive advantage function ships, port equipment, trailers and cargo handling and performance of the extent to which they control provided by the shipping agent before the arrival of the shipping services throughout the island and the ship are also calculated. Realizing with internationally. In the recent decision of this study opportunities and increased regional shipping may help researchers and shipping agents to agents, emphasizing importance international improve the performance of their services to shipping agent is essential for improving economic customers in the shipping firms worldwide to performance targets and generating competitive understand the concept of internationalization advantages realize highly efficient and achieve itself. It is necessary to increase competitive rapid development and competitive in terms of advantage and performance furthermore; this study innovation, knowledge management, social provides information that can be used to improve relations and the internationalization of the the strategy and performance of the shipping firms government's initiative with the quality. to manage and perform services more effectively. International shipping agent in Penang showed a good performance in providing services for 2. Literature Review arrivals and departures as well as controlling various types of ships for the purpose of loading In this study, the literature on international shipping and unloading cargo in ports and distribution agents in Malaysia ports, competitive advantage, logistics. Among the services provided by performances, international management international shipping agents to the master of the knowledge, social networking and government vessel and ship owners have to arrange all the support are reviewed. The first part describes the documents that must be recognized in government management of the international shipping agents in agencies such as Immigration, Customs, Malaysia and the literature on the variables Department of complying with all procedures to be described above. The second part outlined the gaps attached to the ship's captain with the government in the literature and followed by the theoretical agencies involved [7]-[8]. Penang international framework of this study. The third part reviews the 1191 Int. J Sup. Chain. Mgt Vol. 9, No. 4, August 2020 literature on the constructs used in the study and master of the vessel, The actual of the navigation the prior research in this field. networking tracking on the vessel, Changing environment, Government accessibility