Dealing with the Risks of the Belt and Road Initiative

Wang, Yiwei

doi:10.1007/978-981-10-5972-8_17

Cited by 6 publications

(12 citation statements)

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“…), while work is carried out outside China's borderline (De Nobili, 2018). The economic and political instability in many of the BRI participating countries outside China (where the work is being carried out), coupled with a lack of proper risk assessment and evaluation mechanisms make it even more difficult to predict returns and control the investment risks, resulting in little to no evidence on officially reported ROI or estimation of low ROI of BRI projects (Wang, 2018).…”

Section: Literature Perspectivementioning

confidence: 99%

“…One of the factors driving economic risk to BRI SCs is the trade imbalance in Eurasia, where China is export-dominant while the majority of other countries are import-dominant (Wang, 2018). It is reported that the trains departing from China are usually fully loaded, while the returning ones often include empty containers (Huang, 2016).…”

Section: Literature Perspectivementioning

confidence: 99%

“…Notwithstanding these potential benefits and gains, businesses connected through BRI face significant challenges including, but not limited to, financial, security, legal, SC, transcontinental trade issues and cultural diversities (Wang, 2018). These concerns are substantiated in a recent report which suggests that “the number of cases Hong Kong International Arbitration Centre handled involving parties from nations covered by the Belt and Road Initiative jumped from 77% to 124 last year” (Ng, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…The complex geopolitical nature of BRI further exacerbates the situation making BRI SC seven more susceptible to risks involving financial, operational and security threats among others (Gholizadeh et al , 2020; Wang, 2018). The debt-financed BRI-based projects raise concern for BRI SC sustainability (Wijeratne et al , 2018).…”

Section: Introductionmentioning

confidence: 99%

“…The studies that exist (e.g. Lin, 2017; Wang, 2018; Yuan et al , 2019) provide disparate account of BRI SC risks which makes it challenging to understand the risks, even more so given that BRI is still at an early stage of development. Moreover, studies that are underpinned by a theoretical stance remain almost non-existent; this not only hampers creation of knowledge in a robust, coherent manner on one hand but also dilutes potential knowledge transfer to industry, on the other.…”

Section: Introductionmentioning

confidence: 99%

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Belt and road initiative (BRI) supply chain risks: propositions and model development

Ram

Zhang

2020

IJLM

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PurposeBelt and road initiative (BRI) is a transcontinental endeavor strategically connecting supply chains (SCs) and economic infrastructures to ignite business activities and achieve trade benefits. However, the rising global SC failure costs and risks associated with this initiative (owing to unique geopolitical, economic and mega-connectivity involving over 70 countries) necessitate examining BRI SC risks. Yet, research on the subject remains limited, and the purpose of this paper is to address this gap in knowledge.Design/methodology/approachA two-pronged approach was taken. First, a data sample of 554 articles was analyzed and 178 articles found relevant were used to present a systematic, structured framework of risk factors along operational, economic, financial, social and security dimensions. Then informed by the theory of risk management and supplemented by literature evidence, we have built a BRI SC risk model.FindingsThe results presented through the model show that BRI SCs face a combination of risks triggered by operational processes, informational and environmental (PIE) deficiencies. Findings show that lack of risk and liability management, unbalanced risk-sharing partnerships, lack of transparency, inadequate project evaluation, incompatible corporate governance structures and cyber security all pose threats to BRI SCs specifically and SCs in general.Research limitations/implicationsAcademically, the results facilitate theory development by identifying and proposing seven risk factors and modeling relationship among them and BRI SC risks outcome. The results also extend application of theory of risk management to SC context.Practical implicationsThe findings provide a decision-making tool for managers to assess risk factors in their SCs, thus enabling improved decision making to avoid, mitigate, transfer or accept risks.Originality/valueIdentifies and proposes a set of seven risk factors that drive BRI SC risks. Develops a model of BRI SC risks which help build theory of SC risk management.

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Section: Literature Perspectivementioning

confidence: 99%

Section: Literature Perspectivementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%