IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-02928-3.html
   My bibliography  Save this article

Charting sustainable logistics on the 21st-Century Maritime Silk Road: a DEA-based approach enhanced by risk considerations through prospect theory

Author

Listed:
  • Chia-Nan Wang

    (National Kaohsiung University of Science and Technology)

  • Nhat-Luong Nhieu

    (National Kaohsiung University of Science and Technology)

  • Chun-Ming Chen

    (National Kaohsiung University of Science and Technology)

Abstract

This study investigates the sustainable logistics potential of countries along the Maritime Silk Road (MSR), an essential element of the Belt and Road Initiative (BRI), against a backdrop of increasing global emphasis on sustainability and efficient trade practices. Addressing the gap in existing literature, it explores how strategic positioning influences countries’ logistics capabilities, integrating risk considerations and behavioral decision-making aspects into the assessment. Through a specialized Data Envelopment Analysis (DEA) model that incorporates Prospect Theory, this research provides a nuanced evaluation of economic performance, energy efficiency, infrastructure robustness, governance quality, and innovation capabilities. The analysis reveals significant findings, such as Vietnam’s outstanding economic efficiency, Indonesia’s notable achievements in sustainability and governance, and Malaysia’s balanced efficiency, which collectively enhance the MSR’s logistics framework. Additionally, India, Greece, Djibouti, and Kenya emerge as vital partners due to their diverse strengths. The introduction of a risk-aware DEA model, enriched with behavioral factors, marks a significant advancement in logistics assessment methodologies, offering a more comprehensive understanding of sustainable logistics practices along the MSR. The implications of this study are profound, providing valuable insights for policymakers, investors, and business leaders. It guides strategic decision-making, promoting sustainability in MSR trade activities while aligning with global eco-conscious practices and economic growth within the context of environmental stewardship and sustainable development. However, the research acknowledges limitations related to the indirect measurement of decision-makers’ psychological behavioral coefficients and the focus on efficiency metrics without extensive exploration of cultural, political, or legal factors. This work sets a new precedent in sustainable logistics research, encouraging future studies to incorporate direct behavioral data and qualitative factors for a more enriched evaluation. Its innovative approach not only contributes to the academic discourse on sustainable logistics but also offers practical tools for enhancing the MSR’s trade efficiency and sustainability.

Suggested Citation

  • Chia-Nan Wang & Nhat-Luong Nhieu & Chun-Ming Chen, 2024. "Charting sustainable logistics on the 21st-Century Maritime Silk Road: a DEA-based approach enhanced by risk considerations through prospect theory," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-02928-3
    DOI: 10.1057/s41599-024-02928-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-02928-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-02928-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jasmine Siu Lee Lam & Kevin Patrick Brendan Cullinane & Paul Tae-Woo Lee, 2018. "The 21st-century Maritime Silk Road: challenges and opportunities for transport management and practice," Transport Reviews, Taylor & Francis Journals, vol. 38(4), pages 413-415, July.
    2. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. Wei Hu & Yuejing Ge & Zhiding Hu & Shuai Ye & Feng Yang & Haining Jiang & Kun Hou & Yun Deng, 2022. "Geo-Economic Linkages between China and the Countries along the 21st-Century Maritime Silk Road and Their Types," IJERPH, MDPI, vol. 19(19), pages 1-28, October.
    6. Jianfeng Zheng & Lingxiao Yang & Wei Li & Xiaowen Fu & Daqing Li, 2022. "Priority analysis of port investment along the 21st-Century Maritime Silk Road region: the case of Southeast Asia," Maritime Policy & Management, Taylor & Francis Journals, vol. 49(8), pages 1116-1134, November.
    7. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    8. Xinfang Zhang & Jing Lu & Yan Peng, 2023. "Spatio-temporal evolution of the container port system along the 21st-century Maritime Silk Road," Maritime Policy & Management, Taylor & Francis Journals, vol. 50(5), pages 668-691, July.
    9. Chuanxu Wang & Hercules Haralambides & Le Zhang, 2021. "Sustainable port development: the role of Chinese seaports in the 21st century Maritime Silk Road," Post-Print hal-04046220, HAL.
    10. Chuanxu Wang & Hercules Haralambides & Le Zhang, 2021. "Sustainable port development: the role of Chinese seaports in the 21st century Maritime Silk Road," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-04046220, HAL.
    11. Tianci Huang & Zhuo Chen & Su Wang & Daokui Jiang, 2021. "Efficiency evaluation of key ports along the 21st-Century Maritime Silk Road based on the DEA–SCOR model," Maritime Policy & Management, Taylor & Francis Journals, vol. 48(3), pages 378-390, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dongwei Yang & Qiong Xia, 2018. "Behavioral DEA model in evaluating the regional carrying states in China," Annals of Operations Research, Springer, vol. 268(1), pages 315-331, September.
    2. Min Wang & Huayu Li & Yung-ho Chiu & Kexin Deng & Menghua Deng, 2023. "Research on the Carbon Emission Reduction Potential of the Ports in the Yangtze River Delta of China," SAGE Open, , vol. 13(4), pages 21582440231, November.
    3. Min Wang & Meng Ji & Xiaofen Wu & Kexin Deng & Xiaodong Jing, 2023. "Analysis on Evaluation and Spatial-Temporal Evolution of Port Cluster Eco-Efficiency: Case Study from the Yangtze River Delta in China," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    4. Kubińska, Elżbieta & Adamczyk-Kowalczuk, Magdalena & Andrzejewski, Mariusz & Rozakis, Stelios, 2022. "Incorporating the status quo effect into the decision making process: The case of municipal companies merger," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    5. Wencheng Yu & Shaobo Liu & Lili Ding, 2021. "Efficiency Evaluation and Selection Strategies for Green Portfolios under Different Risk Appetites," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    6. Ippoliti, Roberto & Falavigna, Greta, 2012. "Efficiency of the medical care industry: Evidence from the Italian regional system," European Journal of Operational Research, Elsevier, vol. 217(3), pages 643-652.
    7. Yangxue Ning & Yan Zhang & Guoqiang Wang, 2023. "An Improved DEA Prospect Cross-Efficiency Evaluation Method and Its Application in Fund Performance Analysis," Mathematics, MDPI, vol. 11(3), pages 1-15, January.
    8. Shi, Hai-Liu & Chen, Sheng-Qun & Chen, Lei & Wang, Ying-Ming, 2021. "A neutral cross-efficiency evaluation method based on interval reference points in consideration of bounded rational behavior," European Journal of Operational Research, Elsevier, vol. 290(3), pages 1098-1110.
    9. Waichon Lio & Baoding Liu, 2018. "Uncertain data envelopment analysis with imprecisely observed inputs and outputs," Fuzzy Optimization and Decision Making, Springer, vol. 17(3), pages 357-373, September.
    10. Chia-Nan Wang & Phi-Hung Nguyen & Thi-Ly Nguyen & Thi-Giang Nguyen & Duc-Thinh Nguyen & Thi-Hoai Tran & Hong-Cham Le & Huong-Thuy Phung, 2022. "A Two-Stage DEA Approach to Measure Operational Efficiency in Vietnam’s Port Industry," Mathematics, MDPI, vol. 10(9), pages 1-21, April.
    11. Henriques, C.O. & Chavez, J.M. & Gouveia, M.C. & Marcenaro-Gutierrez, O.D., 2022. "Efficiency of secondary schools in Ecuador: A value based DEA approach," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    12. Wang, Jingguo & Zionts, Stanley, 2008. "Negotiating wisely: Considerations based on MCDM/MAUT," European Journal of Operational Research, Elsevier, vol. 188(1), pages 191-205, July.
    13. Lo, Shih-Fang, 2013. "Which stock exchanges are more attractive? The competition analysis of listing and trading performance," Economic Modelling, Elsevier, vol. 30(C), pages 501-509.
    14. Mangaraj, B.K. & Aparajita, Upali, 2020. "Constructing a generalized model of the human development index," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    15. Lei Chen & Ying-Ming Wang & Yan Huang, 2020. "Cross-efficiency aggregation method based on prospect consensus process," Annals of Operations Research, Springer, vol. 288(1), pages 115-135, May.
    16. Franz R. Hahn, 2007. "Determinants of Bank Efficiency in Europe. Assessing Bank Performance Across Markets," WIFO Studies, WIFO, number 31499, April.
    17. Azarnoosh Kafi & Behrouz Daneshian & Mohsen Rostamy-Malkhalifeh, 2021. "Forecasting the confidence interval of efficiency in fuzzy DEA," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(1), pages 41-59.
    18. Costa, Marcelo Azevedo & Lopes, Ana Lúcia Miranda & de Pinho Matos, Giordano Bruno Braz, 2015. "Statistical evaluation of Data Envelopment Analysis versus COLS Cobb–Douglas benchmarking models for the 2011 Brazilian tariff revision," Socio-Economic Planning Sciences, Elsevier, vol. 49(C), pages 47-60.
    19. Shoji, Isao & Kanehiro, Sumei, 2016. "Disposition effect as a behavioral trading activity elicited by investors' different risk preferences," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 104-112.
    20. Ahmad, Usman, 2011. "Financial Reforms and Banking Efficiency: Case of Pakistan," MPRA Paper 34220, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-02928-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.