Author
Listed:
- Divya Choudhary
(Indian Institute of Management Sambalpur)
- Alok Choudhary
(Loughborough University)
- Ravi Shankar
(Indian Institute of Technology, Delhi)
- Christian Hicks
(Newcastle University Business School)
Abstract
A combination of sustainability-related regulations and increased demand from stakeholders has pressed firms to adequately address sustainability-related risks. This issue is particularly important, and challenging, for the freight transportation sector due to its exposure to a large number of inherent sustainability risks. Despite the growing significance of sustainability risks, there is a lack of research related to sustainability risk management, which may be due to the difficulties in identifying and evaluating sustainability risks. We aim to fill this research gap by identifying, measuring and modelling sustainability risks in the context of freight transportation. Our research makes three primary contributions. First, we introduce the concept of a sustainability risk index (SRI) to understand the risk exposure of freight transportation systems (FTSs) in the context of India, an emerging market. The SRI is a mathematical tool used to measure sustainability risks and to quantify a firm’s exposure to sustainability-related risks. Second, we propose an integrated two-phase model based on an interval 2-tuple linguistic model and a digraph matrix approach to calculate the SRI. In contrast to other existing techniques, the proposed approach can effectively deal with uncertain and incomplete linguistic assessments without suffering a loss of information. Third, we propose a framework for calculating both the disruption scores and influencing power of sustainability risks to evaluate the associated criticality and triggering power. For a robustness check, we also conduct a sensitivity analysis of the impact of risk variations on the SRI. Unlike conventional perceptions, our results show that organisational and governmental risks, which are mostly behavioural and skills-induced, are more significant for sustainable FTSs compared to financial risks. Our research helps the managerial community in the freight transportation sector in emerging markets to engage in more informed decision-making to proactively mitigate sustainability risks, which have potentially devastating financial, environmental and societal impacts.
Suggested Citation
Divya Choudhary & Alok Choudhary & Ravi Shankar & Christian Hicks, 2025.
"Evaluating the risk exposure of sustainable freight transportation: a two-phase solution approach,"
Annals of Operations Research, Springer, vol. 349(2), pages 981-1015, June.
Handle:
RePEc:spr:annopr:v:349:y:2025:i:2:d:10.1007_s10479-021-03992-7
DOI: 10.1007/s10479-021-03992-7
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
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:spr:annopr:v:349:y:2025:i:2:d:10.1007_s10479-021-03992-7. 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.
We have no bibliographic references for this item. You can help adding them by using 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: http://www.springer.com .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.