This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
CC BY-NC-SA 4.0
Creative Commons License: https://creativecommons.org/licenses/by-nc-sa/4.0/
During the time when there were no standard regulations or guidelines on safety, there were many accident cases were recorded with high fatality rates, loss of properties and environment pollution. Finally, ISM Code was introduced to enhance the maritime safety but it is only applied to vessels of >500 GRT and hence the ships below 500GRT are exempted from this regulations. Thus due to lack of proper management system onboard especially on smaller ships, many other factors affecting the safety of the vessels has arisen. In accordance with this, the accident rate does not fall down as it keeps rising. Therefore, the purpose of this study is to find out the factors contributing towards inefficient management as a result of lack of proper management system. A sample consists of 324 respondents from varies field in shipping industry was collected using questionnaire forms as an instrument and analyzed using descriptive and Structural Equation Modeling (SEM) method. As a whole, the findings indicate that the grand mean values of entire of the sections of the questionnaire are above 3.00 which prove that the hypothesis is accepted. Moreover, the result shows that inefficient management has gained the highest grand mean values of 4.11 followed by external factor which is 4.05 meaning thesetwo factors has contributed the most to maritime accidents in the absence of proper management system. Whereas, based on the SEM technique, it was proven that human error (β = 0.49, P = 0.050) and stability factor (β = 0.49, P = 0.002) are contributing directly to inefficient management while, the demography of the respondents (β = 0.18, P = 0.103) and external factor (β = 0.65, P = 0.000) are contributing indirectly to inefficient management. Therefore, the study proves that human error, stability factor and external factor are causal of inefficient management. This has occurred because most of the shipping companies are failed to implement an effective and skillful management system as this will lead to human error, stability factor, and will worsen the external factors, as an effective management system can provide a clear exposure to the staff and crews of a shipping company to manage the ship or company effectively, safely and systematically.