Over the years,
many organizations have been clustering around the ports in search of greener
pasture and economic adventures without undertaking significant studies to
ascertain reasons for such clustering.
The study was therefore carried out to appraise and determine the
significant factors that contribute into the decision of firms to locate
investments in maritime clusters in Nigeria. Factors such as, Guaranteed
security of investment (GS) ,Favourable Government policy (FG Policy), The ease of administration
and coordination of the business divisions of a firm from the cluster
location (EAC), Reduced labour cost and access to professionals (RLC) and
Access to transport cum optimization of logistics and production cost
(TPCO),was analyzed using the statistical method for social science
(SPSS)with each having Eigenvalues of
2.992, 2.244, 1.241, 1.145, and 1.039.Recommendation was given base on the
results of the analyzes.
Maritime
clusters remain one of the major strategies that companies in the maritime
industry work together in close proximity to promote sustainability and also
fulfilling the demands of consumers of shipping services in the market. The
concept of maritime clusters denotes a group of allied maritime industries and
operators located in close proximity to each other in with the intention of
enabling each company to develop capacity to performance by leveraging on the
advantages of proximity with similar or allied companies. Merk and Notteboom
(2015) defines maritime clusters as “naturally-occurring collections of
different types of maritime activities” that arise to benefit all parties.
Often, firms in a cluster are linked by buyer-supplier relationships, operating
closely together as partners (Merk and Notteboom, 2015). It is therefore
commonly recognized that clusters are a big part of the future in responding to
economic and environmental challenges facing the maritime sector in several
regions. Maritime clusters can be at the subnational, national and
international level as a way to advance maritime businesses, especially in
identifying opportunities, spurring innovations and addressing sustainable
development challenges. Typical examples of international maritime cluster is
Singapore which has over the years developed as a global hub for ship
chartering and engagement of diversified maritime businesses and allied
businessthat services the shipping
needs of various countries of the World.
In Nigeria for example, the development of
the Onne Oil and Gas Free Zone hosting the Federal Lighter Terminal (FLT), the
Federal Ocean Terminal (FOT), and multiple allied maritime companies with the
aim of agglomerating such companies into maritime cluster for the purposes
acting as a “One Stop Shop” for servicing the logistics needs of the West
African Offshore Oil and Gas Sector and the overall shipping market represent
one of the deliberate attempt of the Federal Government at developing maritime
clusters in Nigeria; even though it was not directly mentioned as a maritime
cluster. It was developed as a Free Trade Zone (FTZ) for the offshore oil and
Gas, oil shipping and allied maritime services on 29th March, 1996 by Government
Decree No. 8, issued in the Official Gazette No. 12 on the 29th March, 1996
declaring an area of some 16 square kilometres in Onne Rivers State as a
dedicated "Oil & Gas Free Zone”. Similarly, establishment of the
Calabar Free Trade Zone in 1989, situated by willful planning in proximity to
the Calabar seaport in Cross River State, with an area of 152 hectares of land
represent an indirect attempt at enabling clustering of maritime businesses and
allied companies around port. The Calabar cluster or Free Trade Zone allows the
investors to produce goods and services for export and also permits them to
conduct other business-related activities such as assembly, distribution and
transportation, import processing, packaging, warehousing, etc. The latest of
what we refer to as attempt at encouraging the development of maritime clusters
in Nigeria in the establishment of the Lekki Export Processing Zone in 2006, in
Lagos, Nigeria.The Lekki Free Zone,
created in 2006, is a modern free zone managed in accordance with international
best practices. The zone's 16,500 hectares are divided into four quadrants and
managed by various operators, benefiting from Lagos State's position as the
premier distribution hub in West Africa. The motivation for the development of
maritime clusters derives from the benefits if offers for the economic
development of the regions and the State.
Aim and Objectives of
the Study
The
aim of the research is to analyses the effects of maritime clusters on
port-hinterland relationships in Nigeria.
The specific research objectives
include:
To determine the
significant factors that contributes into the decision of firms to locate
investments in maritime clusters in Nigeria
Research Questions
Based
on the specific objective of the study, the following research questions
follows:
1.What
are the significant factors that contributes into the decision of firms to
locate investments in maritime clusters in Nigeria?
Hypotheses
The hypotheses include:
1.H01:There is no significant factor that contributes
into the decision of firms to locate investments in maritime clusters in
Nigeria
2.H02: There is no
determinant maritime cluster business component that contribute significantly
to maritime sector Development in Nigeria.
CONCEPTUAL REVIEW
CONCEPT
OF MARITIME CLUSTERS
Maritime clusters are simply a group
of companies in the maritime industries located in close proximity. Maritime clusters are “naturally
occurring collections of different types of maritime activities” that arise to
benefit all parties. Often, firms in a cluster are linked by buyer-supplier
relationships, operating closely together as partners. While maritime clusters
are found around the world, their structure and goals vary by geography. At the
international level, the World Ocean Council the Global Blue Economy Business
and Investment Organisation has been bringing together all ocean-related
industries in a leadership alliance for Corporate Ocean Responsibility since
2009 and produced
a white paper on this topic in February 2018.According
to Paul Holthus, WOC’s Founding
President and CEO, many European clusters “are often well structured in looking
at global competitiveness, really providing a platform that links national
maritime-level strategic interests to their governments’ interest in economic
development.” “For the smaller, dynamic Asian economies such as
Singapore,” Holthus says, “it was also a very natural evolution of the triple
helix between the industry, government, and research communities that was able
to quickly develop collaboration, which has been facilitated by national
policies.” Holthus notes there are some distinctions in how clusters are
developing in larger Asian countries. “For the larger Asian countries, it’s
perhaps more challenging to create the commonalities and dynamics at a national
level, and so clusters are emerging more at the level of key maritime centers,”
Holthus says. Clusters in the Middle East face other challenges,
according to Holthus. “The importance of the oil sector has perhaps meant there
has been less need to have a multi-sectorial cluster in an area that’s
historically been reliant on a single maritime-related industry. This may have
reduced the incentives for competitiveness and innovation, however that is
changing rapidly as maritime clusters look to be developing in the region.”
Holthus says that, regardless of region, there is an understanding that the
clusters are important for growth and, increasingly, for sustainable
development.
Theoretical
Review
Theory
of Agglomeration
The
term agglomeration describes the phenomenon where businesses tend to cluster
close to each other and high population areas. One of the major subfields of
urban economics, economies of agglomeration (or agglomeration effects)
describes, in broad terms, how urban agglomeration occurs in locations where
cost savings can naturally arise. Most often discussed in terms of economic
firm productivity, agglomeration effects can also explain the phenomenon where
large proportions of the population are clustered in cities and major urban
centres. Similar to economies of scale, the costs and benefits of agglomerating
increase the larger the agglomerated urban cluster becomes.
Theory of Industrial District
Alfred Marshall and
industrial districts the Marshallian industrial district is now recognised as
an important part of modern industrial economics (Amin, Brusco, Piore, Pyke,
Sabel, Sengenberger) and as a chief element of Marshall's thought (Becattini,
Loasby, Martin, Raffaelli), we think it useful to recall its main
characteristics in order to better understand its further developments made by
the Old Cambridge School. ‘Industrial district’ means an area where a
concentration of firms has settled down; but, it is not simply a localised
industry, as Marshall clarifies well, especially in his Principles of
Economics.
According to
Marshall, small and medium firms collected in a district can compete with large
vertically integrated firms. The strength of small and medium firms in a
district is provided by external economies that ‘depend on the general
organisation of the trade, on the growth of the knowledge and appliances common
to the trade, on the development of subsidiary industries, and so on’
(Marshall, 1898). External economies are opposed to internal economies that
characterise large firms.
METHODOLOGY
Survey
method was used and primary data was obtained using questionnaire as survey
instrument, principal components factor analysis was used to analyze the data.
Description
of the Study Area
The
study area of the research is the port-based maritime clusters in Nigeria with
specific concentration on the Onne oil and gas free zone in Rivers state
Nigeria, the Calabar free trade zone in Cross-River state Nigeria and the Lekki
Free (export processing) zone in Lagos. These constitute the port-based
maritime clusters in Nigeria. Therefore the study area of the research is the
Nigeria port-based maritime clusters playing host to the maritime, shipping and
the allied operating in each of the zones over the years
Sources of Data
This
research will rely upon primary sources of data for the study, the shipping
companies and allied companies operating in the maritime clusters. Primary data
will be sourced from survey of the maritime and allied companies operating in
the maritime clusters. The responses of the sampled population of the
management staff of the companies will form the primary data sources for
purposes of the study.
Population Covered by the Survey
and Sample Size
The three port-based maritime
clusters and trade free zones in Nigeria used in the study have management
authorities and multiple shipping and allied organizations operating in each
zone. However, we are unable to determine specifically the population of the
management staff of the maritime, shipping and allied companies operating in
each maritime cluster for purposes of population sampling. Thus we used the Z
score formula for unknown population to determine the sample size while
adopting a purposive random sampling method in which the members of staff in
the management cadre of the maritime, shipping and the allied organizations
operating in each of the maritime clusters are randomly sampled in the survey,
interviewed and questionnaires administered.
The
determination of sample of unknown population using Z score is given as:
N = Z2(P) (1-P) /C2
------------------------------------ (3.1)
Where Z = standard normal
deviation set at 95% confidence interval=1.96
P = percentage picking a
choice or response =50%
C = confidence interval
=0.05
Therefore
N = (1.96)2(0.5)(1-0.5)/(0.05)2
N= 0.9604/0.0025
N= 384.16
=384
The
sample population will be about 384 staff in the management cadre of the
companies and organizations operating in the identified maritime clusters in
Nigeria. Questionnaire will be used as survey instrument to obtain data for
determining what significant factors influence the decision of the companies to
join or invest in the maritime clusters.
Method of Data
Analysis
The
study will employ the Factor Analysis method to investigate and determine the
objective of the study which seeks to determine the significant factors that
influence the decision of maritime and shipping companies to invest in maritime
clusters.
PRESENTATION,
RESULTS AND DISCUSSION
Under this section, the data
obtained is presented, analyzed and the result of the study is discussed.
Data
Presentation
Table
1: Respondents rating of the Influences of identified Decision Factors on Firms
Decision to Locate Operational Offices around Seaport Zones/Maritime Clusters
in Nigeria
S/No. of Respondents
All
scores in %
RlC
EII
FGPolicy
TPCO
APS
EAC
EIC
HDC
GS
SIC
RTB
1
10
15
20
10
10
15
10
10
20
10
15
2
15
15
15
10
10
10
10
10
15
10
15
3
15
10
20
15
15
15
5
5
15
5
10
4
20
10
15
15
5
20
10
20
25
10
10
5
10
10
15
20
10
15
10
10
30
10
10
6
10
15
15
10
10
10
10
10
30
10
15
7
10
15
10
10
15
15
10
10
25
10
15
8
15
10
20
10
5
15
5
15
30
5
10
9
20
5
15
15
5
20
10
20
25
10
5
10
15
5
20
20
10
15
10
15
30
10
5
11
10
15
15
15
10
10
10
10
30
10
15
12
10
15
10
10
15
15
10
5
20
10
15
13
15
10
20
10
5
15
5
10
30
5
10
14
20
5
15
15
5
20
10
5
25
10
5
15
15
5
20
20
10
15
10
5
30
10
5
16
10
15
15
15
10
10
10
15
30
10
15
17
10
15
10
10
15
15
10
15
25
10
15
18
15
10
20
10
5
15
5
10
30
5
10
19
20
5
15
15
5
20
10
10
25
10
5
20
15
5
20
20
10
15
10
5
30
10
5
21
10
15
20
15
10
15
10
5
20
10
15
22
15
15
15
10
10
10
10
15
25
10
15
23
15
10
20
15
15
15
5
15
20
5
10
24
20
10
15
15
5
20
10
10
25
10
10
25
10
10
15
20
10
15
10
10
20
10
10
26
10
15
15
10
10
10
10
15
15
10
15
27
10
15
10
10
15
15
10
15
10
10
15
28
15
5
20
10
10
15
10
10
30
10
5
29
10
15
20
15
10
15
10
15
20
10
15
30
15
15
15
10
10
10
10
10
25
10
15
31
15
10
20
15
15
15
5
15
20
5
10
32
20
10
15
15
5
20
10
15
25
10
10
33
10
10
15
20
10
15
10
20
30
10
10
34
10
15
15
10
10
10
10
10
30
10
15
35
10
15
10
10
15
15
10
10
25
10
15
36
15
5
20
10
10
15
10
10
30
10
5
37
10
15
15
15
10
10
10
15
30
10
15
38
10
15
10
10
15
15
10
10
25
10
15
39
15
10
20
10
5
15
5
5
30
5
10
40
20
5
15
15
5
20
10
5
25
10
5
41
15
5
20
20
10
15
10
10
30
10
5
42
10
15
20
15
10
15
10
10
20
10
15
43
15
15
15
10
10
10
10
10
25
10
15
44
15
10
20
15
15
15
5
15
20
5
10
45
20
10
15
15
5
20
10
5
25
10
10
46
10
10
15
20
10
15
10
10
30
10
10
47
10
15
15
10
10
10
10
10
30
10
15
48
10
15
10
10
15
15
10
10
25
10
15
49
15
5
20
10
10
15
10
10
30
10
5
50
10
15
20
15
10
15
10
15
20
10
15
51
15
15
15
10
10
10
10
10
25
10
15
52
10
15
20
15
10
15
10
15
20
10
15
53
15
15
15
10
10
10
10
10
25
10
15
54
15
10
20
15
15
15
5
15
20
5
10
55
20
10
15
15
5
20
10
15
25
10
10
56
10
10
15
20
10
15
10
20
30
10
10
57
10
15
15
10
10
10
10
10
30
10
15
58
10
15
10
10
15
15
10
10
25
10
15
59
15
10
20
10
5
15
5
10
30
5
10
60
20
5
15
15
5
20
10
15
25
10
5
61
10
15
20
10
10
15
10
10
20
10
15
62
15
15
15
10
10
10
10
10
15
10
15
63
15
10
20
15
15
15
5
5
15
5
10
64
20
10
15
15
5
20
10
20
25
10
10
65
10
10
15
20
10
15
10
10
30
10
10
66
10
15
15
10
10
10
10
10
30
10
15
67
10
15
10
10
15
15
10
10
25
10
15
68
15
10
20
10
5
15
5
15
30
5
10
69
20
5
15
15
5
20
10
20
25
10
5
70
15
5
20
20
10
15
10
15
30
10
5
71
10
15
15
15
10
10
10
10
30
10
15
72
10
15
10
10
15
15
10
5
20
10
15
73
15
10
20
10
5
15
5
10
30
5
10
74
20
5
15
15
5
20
10
5
25
10
5
75
15
5
20
20
10
15
10
5
30
10
5
76
10
15
15
15
10
10
10
15
30
10
15
77
10
15
10
10
15
15
10
15
25
10
15
78
15
10
20
10
5
15
5
10
30
5
10
79
20
5
15
15
5
20
10
10
25
10
5
80
15
5
20
20
10
15
10
5
30
10
5
81
10
15
20
15
10
15
10
5
20
10
15
82
15
15
15
10
10
10
10
15
25
10
15
83
15
10
20
15
15
15
5
15
20
5
10
84
20
10
15
15
5
20
10
10
25
10
10
85
10
10
15
20
10
15
10
10
20
10
10
86
10
15
15
10
10
10
10
15
15
10
15
87
10
15
10
10
15
15
10
15
10
10
15
88
15
5
20
10
10
15
10
10
30
10
5
89
10
15
20
15
10
15
10
15
20
10
15
90
15
15
15
10
10
10
10
10
25
10
15
91
15
10
20
15
15
15
5
15
20
5
10
92
20
10
15
15
5
20
10
15
25
10
10
93
10
10
15
20
10
15
10
20
30
10
10
94
10
15
15
10
10
10
10
10
30
10
15
95
10
15
10
10
15
15
10
10
25
10
15
96
15
5
20
10
10
15
10
10
30
10
5
97
10
15
15
15
10
10
10
15
30
10
15
98
10
15
10
10
15
15
10
10
25
10
15
99
15
10
20
10
5
15
5
5
30
5
10
100
20
5
15
15
5
20
10
5
25
10
5
101
15
5
20
20
10
15
10
10
30
10
5
102
10
15
20
15
10
15
10
10
20
10
15
103
15
15
15
10
10
10
10
10
25
10
15
104
15
10
20
15
15
15
5
15
20
5
10
105
20
10
15
15
5
20
10
5
25
10
10
106
10
10
15
20
10
15
10
10
30
10
10
107
10
15
15
10
10
10
10
10
30
10
15
108
10
15
10
10
15
15
10
10
25
10
15
109
15
5
20
10
10
15
10
10
30
10
5
110
10
15
20
15
10
15
10
15
20
10
15
111
15
15
15
10
10
10
10
10
25
10
15
112
10
15
20
15
10
15
10
15
20
10
15
113
15
15
15
10
10
10
10
10
25
10
15
114
15
10
20
15
15
15
5
15
20
5
10
115
20
10
15
15
5
20
10
15
25
10
10
116
10
10
15
20
10
15
10
20
30
10
10
117
10
15
15
10
10
10
10
10
30
10
15
118
10
15
10
10
15
15
10
10
25
10
15
119
15
10
20
10
5
15
5
10
30
5
10
120
20
5
15
15
5
20
10
15
25
10
5
121
10
15
20
10
10
15
10
10
20
10
15
122
15
15
15
10
10
10
10
10
15
10
15
123
15
10
20
15
15
15
5
5
15
5
10
124
20
10
15
15
5
20
10
20
25
10
10
125
10
10
15
20
10
15
10
10
30
10
10
126
10
15
15
10
10
10
10
10
30
10
15
127
10
15
10
10
15
15
10
10
25
10
15
128
15
10
20
10
5
15
5
15
30
5
10
129
20
5
15
15
5
20
10
20
25
10
5
130
15
5
20
20
10
15
10
15
30
10
5
131
10
15
15
15
10
10
10
10
30
10
15
132
10
15
10
10
15
15
10
5
20
10
15
133
15
10
20
10
5
15
5
10
30
5
10
134
20
5
15
15
5
20
10
5
25
10
5
135
15
5
20
20
10
15
10
5
30
10
5
136
10
15
15
15
10
10
10
15
30
10
15
137
10
15
10
10
15
15
10
15
25
10
15
138
15
10
20
10
5
15
5
10
30
5
10
139
20
5
15
15
5
20
10
10
25
10
5
140
15
5
20
20
10
15
10
5
30
10
5
141
10
15
20
15
10
15
10
5
20
10
15
142
15
15
15
10
10
10
10
15
25
10
15
143
15
10
20
15
15
15
5
15
20
5
10
144
20
10
15
15
5
20
10
10
25
10
10
145
10
10
15
20
10
15
10
10
20
10
10
146
10
15
15
10
10
10
10
15
15
10
15
147
10
15
10
10
15
15
10
15
10
10
15
148
15
5
20
10
10
15
10
10
30
10
5
149
10
15
20
15
10
15
10
15
20
10
15
150
15
15
15
10
10
10
10
10
25
10
15
151
15
10
20
15
15
15
5
15
20
5
10
152
20
10
15
15
5
20
10
15
25
10
10
153
10
10
15
20
10
15
10
20
30
10
10
154
10
15
15
10
10
10
10
10
30
10
15
156
10
15
10
10
15
15
10
10
25
10
15
157
15
5
20
10
10
15
10
10
30
10
5
158
10
15
15
15
10
10
10
15
30
10
15
159
10
15
10
10
15
15
10
10
25
10
15
160
15
10
20
10
5
15
5
5
30
5
10
161
20
5
15
15
5
20
10
5
25
10
5
162
15
5
20
20
10
15
10
10
30
10
5
163
10
15
20
15
10
15
10
10
20
10
15
164
15
15
15
10
10
10
10
10
25
10
15
165
15
10
20
15
15
15
5
15
20
5
10
166
20
10
15
15
5
20
10
5
25
10
10
167
10
10
15
20
10
15
10
10
30
10
10
168
10
15
15
10
10
10
10
10
30
10
15
169
10
15
10
10
15
15
10
10
25
10
15
170
15
5
20
10
10
15
10
10
30
10
5
171
10
15
20
15
10
15
10
15
20
10
15
172
15
15
15
10
10
10
10
10
25
10
15
173
10
15
20
15
10
15
10
15
20
10
15
174
15
15
15
10
10
10
10
10
25
10
15
175
15
10
20
15
15
15
5
15
20
5
10
176
20
10
15
15
5
20
10
15
25
10
10
177
10
10
15
20
10
15
10
20
30
10
10
178
10
15
15
10
10
10
10
10
30
10
15
179
10
15
10
10
15
15
10
10
25
10
15
180
15
10
20
10
5
15
5
10
30
5
10
181
20
5
15
15
5
20
10
15
25
10
5
182
10
15
20
10
10
15
10
10
20
10
15
183
15
15
15
10
10
10
10
10
15
10
15
184
15
10
20
15
15
15
5
5
15
5
10
185
20
10
15
15
5
20
10
20
25
10
10
186
10
10
15
20
10
15
10
10
30
10
10
187
10
15
15
10
10
10
10
10
30
10
15
188
10
15
10
10
15
15
10
10
25
10
15
189
15
10
20
10
5
15
5
15
30
5
10
190
20
5
15
15
5
20
10
20
25
10
5
191
15
5
20
20
10
15
10
15
30
10
5
192
10
15
15
15
10
10
10
10
30
10
15
193
10
15
10
10
15
15
10
5
20
10
15
194
15
10
20
10
5
15
5
10
30
5
10
195
20
5
15
15
5
20
10
5
25
10
5
196
15
5
20
20
10
15
10
5
30
10
5
197
10
15
15
15
10
10
10
15
30
10
15
198
10
15
10
10
15
15
10
15
25
10
15
199
15
10
20
10
5
15
5
10
30
5
10
200
20
5
15
15
5
20
10
10
25
10
5
201
15
5
20
20
10
15
10
5
30
10
5
202
10
15
20
15
10
15
10
5
20
10
15
203
15
15
15
10
10
10
10
15
25
10
15
204
15
10
20
15
15
15
5
15
20
5
10
205
20
10
15
15
5
20
10
10
25
10
10
206
10
10
15
20
10
15
10
10
20
10
10
207
10
15
15
10
10
10
10
15
15
10
15
208
10
15
10
10
15
15
10
15
10
10
15
209
15
5
20
10
10
15
10
10
30
10
5
210
10
15
20
15
10
15
10
15
20
10
15
211
15
15
15
10
10
10
10
10
25
10
15
212
15
10
20
15
15
15
5
15
20
5
10
213
20
10
15
15
5
20
10
15
25
10
10
214
10
10
15
20
10
15
10
20
30
10
10
215
10
15
15
10
10
10
10
10
30
10
15
216
10
15
10
10
15
15
10
10
25
10
15
217
15
5
20
10
10
15
10
10
30
10
5
218
10
15
15
15
10
10
10
15
30
10
15
219
10
15
10
10
15
15
10
10
25
10
15
220
15
10
20
10
5
15
5
5
30
5
10
221
20
5
15
15
5
20
10
5
25
10
5
222
15
5
20
20
10
15
10
10
30
10
5
223
10
15
20
15
10
15
10
10
20
10
15
224
15
15
15
10
10
10
10
10
25
10
15
225
15
10
20
15
15
15
5
15
20
5
10
226
20
10
15
15
5
20
10
5
25
10
10
227
10
10
15
20
10
15
10
10
30
10
10
228
10
15
15
10
10
10
10
10
30
10
15
229
10
15
10
10
15
15
10
10
25
10
15
230
15
5
20
10
10
15
10
10
30
10
5
231
10
15
20
15
10
15
10
15
20
10
15
232
15
15
15
10
10
10
10
10
25
10
15
233
10
15
20
15
10
15
10
15
20
10
15
234
15
15
15
10
10
10
10
10
25
10
15
235
15
10
20
15
15
15
5
15
20
5
10
236
20
10
15
15
5
20
10
15
25
10
10
237
10
10
15
20
10
15
10
20
30
10
10
238
10
15
15
10
10
10
10
10
30
10
15
239
10
15
10
10
15
15
10
10
25
10
15
240
15
10
20
10
5
15
5
10
30
5
10
241
20
5
15
15
5
20
10
15
25
10
5
Source: Field Survey.
Table above shows the
data obtained from field survey indicating each of the respondents rating of
the influences of the identified decision factors on Firms decision to locate
operational offices in Seaport Zones/Maritime Clusters in Nigeria. This data
was used to determine the determinant decision factors that influence most, a
firm’s decision to locate offices and operational bases in seaport-based
maritime clusters in Nigeria. As already explained in chapter three of this
work, about eleven(11) factors were identified from literature sources to
influence firms decision to join or locate its base in maritime zone which
include: Reduced labour cost and access to professional workers (RLC),
Favourable government policy (FGP), Access to Transport and logistics services
and production cost optimization (TPCO), availability of adequate port site and
operational space (APS), Ease of administration and coordination of business
divisions (EAC), Economies of scale and infrastructure condition (EIC),
achieving higher service/product demand conditions (HDC), Guaranteed security
(GS), availability of supporting and related industries-cooperation (SIC) and
Reduced Tax burden experiences-tax exemption, etc. Table.1 was analyzed using
the factor analysis methods and the SPSS software, in order to address the
objective of the study.
Results and
Discussion of findings
The
results from the analysis carried out to actualize the objectives of the
research are presented and findings discussed in this section. The results are
organized under different sections in line with the objectives and hypotheses
of the study as follows:
Table 2: The significant factors that
contributes into the decision of firms to locate investments in maritime
clusters in Nigeria
Mean
Std. Deviation
Analysis N
GS
FGPolicy
EAC
RlC
25.1667
16.2500
14.6667
13.5833
4.83767
3.37664
3.15123
3.66958
240
240
240
240
TPCO
HDC
EII
13.4167
11.4167
11.3333
3.60052
3.99704
3.86668
240
240
240
RTB
APS
11.3333
9.8333
3.86668
3.41871
240
240
EIC
9.1667
1.86728
240
SIC
9.1667
1.86728
240
Total Variance Explained
Component
Initial Eigen values
Extraction Sums of Squared
Loadings
Total
% of Variance
Cumulative %
Total
% of Variance
Cumulative %
1
2.992
36.289
36.289
2.992
36.289
36.289
2
2.244
20.404
56.693
2.244
20.404
56.693
3
1.241
10.479
67.972
1.241
11.279
67.972
4
1.145
10.205
78.377
1.145
10.405
78.377
5
1.039
9.537
86.914
1.03
9.537
6
.643
5.848
92.763
7
.419
3.812
96.575
8
.254
2.313
98.887
9
.122
1.113
100.000
10
2.480E-016
2.255E-015
100.000
11
4.413E-018
4.012E-017
100.000
SOURCE: Authors calculation.Extraction Method: Principal Component Analysis.a
a. 5 components extracted.
Table 2 above shows the results of the
principal component factor analysis (PCA) conducted to determine the
significant factors that contribute into the decision of firms to locate
investments in maritime clusters in Nigeria. The results of the study, as shown
in Table 4.20, indicate that Guaranteed security of investment (GS),which involves the safety and security of
financial, infrastructure investment as well as investment in human capita that
a firm has made in the location/region of the maritime clusters, , has a mean
value of 25.1667% with standard deviation of 4.837. Favourable Government
policy (FG Policy) which has to do with the policies such as tax exemptions and
tax holidays for firms located in the marine clusters such as the oil and gas
free zones, etc.; has a mean score of16.25% with standard deviation of 3.337. The ease of administration and
coordination of the business divisions of a firm from the cluster location
(EAC) has a mean value of 14.6667% with standard deviation of 3.15133. Reduced
labour cost and access to professionals (RLC) and Access to transport cum
optimization of logistics and production cost (TPCO) each have mean scores of
13.13.5833% and 13.4167% respectively with respective standard deviations of
3.66958 and 3,60032.
Achieving higher service and product demand
(HDC), benefiting from exchange of research information, ideas and innovation
(EII) and reduced tax burden experiences (RTB) each has respective mean scores
of 11.4167%, 11.3333% and 11.3333% with standard deviations of 3.60052,
3.99704, and 3.86668 respectively. The mean value of availability of adequate
port operational sites (APS), economies of scale and infrastructural conditions
(EIC), and availability of supporting and related industries is 9.8333%,
9.1667% and 9.1667% respectively with respective standard deviations of3.41871, 1.86728 and 1.86728.
The results of the PCA further reveal that the
significant factors that contributes into the decision of firms to locate
investments in maritime clusters in Nigeria include: Guaranteed security of
investment (GS) ,Favourable Government
policy (FGPolicy), The ease of administration and coordination of the business
divisions of a firm from the cluster location (EAC), Reduced labour cost and
access to professionals (RLC) and Access to transport cum optimization of
logistics and production cost (TPCO), with each having Eigen values of2.992,
2.244, 1.241, 1.145, and 1.039.
Since each of the identified significant
factors in the decisionof firms to
locate and operate in maritime clusters have Eigen values greater than one
(Eigen value > 1), we assert that they (five of them) constitute the
detainment decision factors that significantly influence maritime firms
decision to operate in the seaport-based maritime clusters in Nigeria. The
implementations of the significant factors have implications on the decision of
firms to operate in any of the seaport based maritime zones/clusters in Lagos,
Onne, Rivers, Warri and Calabar. Note that other factor with their respective
Eigen values of less than 1 (Eigen < 1); are not significant factors
considered by maritime firms in locating operational units within the maritime
clusters in Nigeria.
Table 3 - H01:
There is no significant factor that contributes into the decision of firms to
locate investments in maritime clusters in Nigeria
Decision
factors
Initial
Eigen values
Decision
GS
2.992
Reject H01
FGPOLICY
2.244
Significant
AEC
1.241
Significant
RIC
1.145
Significant
TPCO
1.039
Significant
HDC
.643
Not significant
EII
.419
Not significant
RTB
.254
Not significant
APS
.122
Not significant
EIC
2.480E-016
Not significant
SIC
4.413E-018
Not significant
Source: Author's calculation. Reject
null hypothesis if Eigen value ≥ 1;
Accept null hypothesis if Eigen value. < 1.
The test of hypothesis H01
which is reveals that three decision factors with Eigen values greater than 1.
Therefore we reject hypothesis H01 and accept the alternate that
there are significant factor that influence a firms decision to locate
operational offices in the maritime clusters in Nigeria. The results of the PCA
further reveal that the significant factors that contributes into the decision
of firms to locate investments in maritime clusters in Nigeria include:
Guaranteed security of investment (GS) ,Favourable Government policy (FGPolicy), The ease of administration and
coordination of the business divisions of a firm from the cluster location
(EAC), Reduced labour cost and access to professionals (RLC) and Access to
transport cum optimization of logistics and production cost (TPCO), with each
having Eigen values of 2.992, 2.244, 1p.241, 1.145, and 1.039.
CONCLUSION
In
conclusion, the study has been able to achieve the objectives of the study as
identified in the previous sections of the study. Given the aforementioned
findings of the study which are in line with the aim and objectives We
therefore conclude as follows:
The results of the PCA provides indication that
the significant factors that contributes into the decision of firms to find and
locate investments in maritime clusters in Nigeria include: Guaranteed security
of investment (GS) ,Favourable
Government policy (FGPolicy), The ease of administration and coordination of
the business divisions of a firm from the cluster location (EAC), Reduced
labour cost and access to professionals (RLC) and Access to transport cum
optimization of logistics and production cost (TPCO), with each having
Eigenvalues of 2.992, 2.244, 1.241, 1.145, and 1.039.
Similarly, the findings of the study indicate
that the offshore oil and gas business component of the maritime clusters have
Eigen value greater than one (5.904 > 1),and form the determinant Maritime Business components influencing most,
Maritime Clusters Development in Nigeria. The implementation is that there is
urgent need for investment in the other sub-sectors of the maritime sector such
as marine transportation, marine tourism, marine insurance, fishery, etc
business component, in order to get them to produce acceptable higher levels of
output that can measure equal to that of the offshore oil and gas business
component. The result further indicate the under-development and consequently,
poor performance of the other maritime cluster business components, when
compared with the offshore oil and gas sub-sector.
Furthermore, the findings of the study reveal
the existence of significant relationship between the maritime sector
development and shipping import and export trade capacities of the
port-hinterland regions in Nigeria.The
relationship is such that that a 1%
change in aggregate shipping import trade across the port-hinterland will cause
the Gross Domestic Product contribution of the maritime sector to grow by
1.276% while a 1% increase in shipping export trade from the hinterlands, will
cause the development of the sector in improve by 0.320%..
Lastly,
the coefficient of elasticity of port revenue to variations in tonnage of
shipping import trade from the ports to the hinterlands is -2.974 while the
coefficient of elasticity of port revenue to variations in shipping exports
trade from the hinterlands to the ports in 0.374. This implies that a 1% change
in aggregate shipping import trade across the port-hinterland will cause the
port revenue change by 2.974h% while a 1% increase in shipping export trade
from the hinterlands, will cause the port revenue to improve by 0.320%.
RECOMMENDATIONS
It is recommended
that:
(i)Since Guaranteed security of investment (GS)
,Favourable Government policy (FG
Policy), the ease of administration and coordination of the business divisions
of a firm from the cluster location (EAC), Reduced labour cost and access to
professionals (RLC) and Access to transport cum optimization of logistics and
production cost (TPCO), constitute the significant factors influencing maritime
firms decision to locate maritime clusters for national development, the
Government should prioritize the security of maritime investment in the
port-based maritime clusters in order to attract more firms to locate in the
clusters. This suort the development drives of Government in the sector.
(ii)Secondly, government policies such as policies
creating free trade zones in maritime regions and tax exemption fornew firms should be used to attract more
maritime firms to locate in ort-based maritime clusters in Nigeria
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Cite this Article: Nwosu, EN; Nze, IC; Ndikom, O; Emeghara, GC; Nwokedi, TC; Agba,
BC (2024). Determinant Factors Influencing Firms to Locate Operations in Port
Based Maritime Clusters.Greener Journal of Business and Management
Studies, 12(1): 9-19.
