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Understanding the implications of BRI and


sustainable
Belt and Road Initiative for supply chains

sustainable supply chains: an


environmental perspective
Atif Saleem Butt Received 6 April 2020
Revised 15 May 2020
Department of Management, American University of Ras Al Khaimah, 19 June 2020
Ras al Khaimah, United Arab Emirates, and Accepted 5 July 2020

Imran Ali
College of Business, Central Queensland University - Melbourne Campus,
Melbourne, Australia

Abstract
Purpose – This research aims to explore the potential impacts of the Belt and Road Initiative (BRI) on
sustainable supply chains.
Design/methodology/approach – This study employs twenty qualitative interviews with supply chain
managers located on the BRI lane from Asian countries.
Findings – Findings revealed that if not managed properly, BRI can pose a serious threats to sustainable
supply chains from environmental perspective. The findings also revealed additional properties which lead to
the emergence of these perspective.
Research limitations/implications – The findings of this study may not be generalizable to a broader
population. Second, this study explores supply chain managers’ interpretations from Asian countries only.
Practical implications – Supply chain firms can use the findings from this study to understand the
implications of BRI for sustainable supply chains. Particularly, firms can understand how the BRI may harm
the organization’s sustainable supply chains from the environmental perspective.
Originality/value – This is, perhaps, the first study which provides empirical evidence concerning the
potential impacts of BRI on the management of sustainable supply chains.
Keywords Belt and road initiative, Qualitative research, Product quality, Sustainable supply chains
Paper type Research paper

1. Introduction
Management of global supply chains has been the subject of much attention in the past
decade (Mentzer et al., 2001; Ponomarov and Holcomb, 2009; Scholten et al., 2014; Stock et al.,
2000; Tukamuhabwa et al., 2015). Many of these studies either present or discuss issues and
challenges about managing global supply chains. Furthermore, some of these studies discuss
factors that can impact the global supply chain, including the location of firms (Mentzer et al.,
2001; Ponomarov and Holcomb, 2009). Besides, an initiative taken by the President of the
People’s Republic of China, Xi Jinping in 2013 called as the “Belt and Road Initiative” (BRI)
has also received much attention from the global community (Th€ urer et al., 2020). The BRI is
one of the largest and perhaps the most ambitious infrastructure-related project undertaken
anywhere in the world, with the potential to impact the global design and management of
supply chains due to its widespread presence across at least three continents. For instance, in
2018, the trade value between China and BRI countries grew up to 8.4 trillion yuan. The BRI
was officially announced in 2013 as a part of China’s President’s visit to Kazakhstan and
Indonesia (Huang, 2016; Sarvari and Szeidovitz, 2016; Summers, 2016; Chen et al., 2013, 2017). Benchmarking: An International
Journal
The basic purpose behind this initiative was to combine the “Silk Road Economic Belt,” a © Emerald Publishing Limited
1463-5771
wide network of transportation and communication infrastructure through the route of DOI 10.1108/BIJ-04-2020-0143
BIJ central Asia – the Belt – with the “21st Century Maritime Silk Road” (Howard and Howard,
2016). Combining these two roads will connect Chinese ports with Southeast Asia (Pakistan,
India, Bangladesh and Cambodia), Africa, the Middle East and Europe. The BRI aims at
developing a giant and mega infrastructure project on a large scale that will connect ports
across and within different continents, thereby linking the Silk Road Economic Belt with the
21st Century Maritime Silk Road (Th€ urer et al., 2020).
Moreover, it has received a great deal of political and financial support from the
stakeholders (partnering countries) since the BRI was founded. For example, China issued an
official statement on the concept of the BRI at the end of 2015 with 56 partner countries and
regional cooperation and also signed a memorandum of understanding with them (Cheng and
Yang, 2018). By 2019, nearly 38 mega-transport infrastructure projects had been built by
Chinese companies in more than 26 partner countries along the BRI route, with a total
investment of over 52 bn U.S. dollars (Chongyang Institute for Financial Studies, Renmin
University of China, 2016). It also means that the BRI is a concept that encompasses a variety
of projects and approaches, and with a broad goal in mind, the Chinese Government initiated
the project.
While the BRI has been the subject of little research in disciplines including political
sciences and economics (Blanchard and Flint, 2017; Blanchard, 2017; Thuan, 2017), its
application to the supply chain domain is rather scant. In particular, little evidence exists
about how the BRI can affect the environmental aspects of supply chain components. Supply
chain sustainability (SCS) is a holistic view of supply chain operations, logistics and
technologies affecting the components of a supply chain’s environmental, social, economic
and legal aspects (Ali and G€olgeci (2019)). Sustainability initiatives typically include
identifying the source of raw materials, ensuring good working conditions and reducing the
carbon footprint (Cheng and Yang, 2018). This paper argues that the BRI can have a negative
impact on sustainable supply chains from the environmental perspective. For instance,
Zhang et al. (2017) argued that the BRI may require the use of excessive raw material as it is a
large-scale infrastructure project. This study further notes that such excessive use of raw
materials may affect the environment. On the other hand, Zhoe et al. (2018) and Cheng and
Yang (2018) noted that the BRI is a large-scale manufacturing project which can negatively
affect the climate through pollution. Also, Du and Shi (20170 and Zhoe et al. (2018) contended
that the BRI can also result in the higher generation of waste through emissions, air pollution
and solid waste, etc. as it is going to build many production facilities along the BRI lane.
Thuan (2017) also argued that the BRI may impact the environmental practices as there are
many entities involved in this project and they might not be able to fully comply with the
environmental standards. While these studies do provide some possible implications of how
the BRI may impact sustainable supply chains, there is no empirical evidence to validate
these claims. Although China itself has hundreds of expert centers specialized in BRI-related
problems, most of these are embedded in international law, political science, the economy and
social science (Kolosov et al., 2017). Thus, the potential impact of how the BRI may impact the
environmental supply chains has been largely overlooked. Furthermore, the global
significance of the BRI means that this is a topic that warrants greater attention from
supply chain management researchers and practitioners both within and outside of China.
Therefore, the purpose of this study is to explore the implications of BRI on sustainable
supply chains from the environmental perspective. The following research question is
developed to guide this study: How does BRI affect the sustainable supply chains from the
environmental perspective?
Our study contributes to sustainable supply chain literature within the context of the BRI
in the following ways. First, our study presents implications of the BRI on the sustainable
supply chain. Perhaps, this is the first and only study to conduct empirical work on the role of
the BRI on sustainable supply chain management literature. Second, this study contributes to
theory by exploring the full potential of the BRI by studying its implication from the supply BRI and
chain management perspective besides other disciplines such as political science and sustainable
economics. Third, our study contributes to practice by providing some helpful guidelines to
firms on how to deal with challenges affecting environmental, supply chains. Such guidelines
supply chains
can also help a firm in developing effective policies and practices which can help firms in
reducing the negative environmental impact of BRI on sustainable supply chains.
The rest of the paper is structured as follows: first, limited literature on sustainable supply
chain management within the context of the BRI is reviewed. Following this, steps taken to
conduct the qualitative methodology are elaborated on including the sample, sampling, data
collection and analysis and trustworthiness of research findings. Moving on, results are
presented and discussed within the contextualization of extant literature. Finally, the
theoretical and practical implications of the study are articulated along with limitations and
future research direction on this emerging topic area.

2. Literature review
2.1 Defining sustainable supply chains
Supply chain is defined as a set of three or more entities (organizations or individuals) directly
involved in the upstream and downstream flows of products, services, finance and
information from source to consumer and vice versa (Mentzer et al., 2001). From this point of
view, a supply chain can be envisaged with two components: individuals and flows. The
location decisions where the various supply chain actors (and operations) are located is an
important decision in terms of supply chain management entities. Sustainability is the
concept of fulfilling current market needs while taking into account the ability to meet
potential demands (Hassini et al., 2012; Jaehn, 2016). Sustainability embraces environmental,
social and economic performance as a triple bottom line concept (Huang et al., 2013). Since the
early 2000s, researchers have repeatedly mentioned the need to integrate the three
sustainability dimensions into supply chain management (Rajeev et al., 2017). Businesses and
researchers have come to view sustainability as an essential tool for long-term risk reduction,
energy depletion and digression and pollution and product liabilities (Manning and Soon,
2016). From sustainable supply chain management’s 12 definitions (Ahi and Searcy, 2013), it
was concluded that sustainable supply chain management is a combination of key elements
of business sustainability and features of supply chain management. In light of its potential to
improve global environmental sustainability without compromising business productivity,
supply chain management has attracted the focus of practitioners and researchers (Acquaye
et al., 2017). Sustainability is the main focus of industries and their stakeholders, thus
embedding it in the basic levels of their planning and operations (Chen et al., 2017).

2.2 Belt and road initiative and sustainable supply chains


From the environmental perspective, the BRI project is a large portfolio of rail network
projects as well as the involvement of coal and many hydropower plants have left many
researchers questioning whether China will be able to successfully export its development
model (Mamic, 2004). Fortunately, the robust environmental prerequisites owned by the state
and a focus on developing long-term green financing solutions. Besides, the ongoing foreign
investment in the application of more robust and competitive standards in the development of
infrastructure has provided some hope for more sustainable supply chains (Babu et al., 2018).
Extant literature also suggests that China is actively pursuing a stringent agenda to bring
environmental sustainability and has issued plenty of guidelines to develop in-depth,
rigorous implementation of environmental regulations. Some examples include the B&R
Ecological and Environmental Cooperation Plan and the guidance on the promotion of Green
BRI, as well as environmental impact assessments. Furthermore, recent studies suggest that
BIJ environmental responsibility can be seen from a myriad of views such as the extensive use of
raw material, generation of waste and most notably the undertakings of the Chinese firms to
drive the set of an initiative to further promote the greater environmental sustainability
(Swedenboard, 2019).
The BRI can also affect organization's environmental supply chains. The BRI should
reduce distances in the long-term, but the quantity and distance of goods to be transported
will likely increase. Moreover, how to achieve this without the degradation of the
environment is a major concern (Th€ urer et al., 2020). The climatic situation on the southern
route of the Silk Road Economic Belt, which crosses arid areas with more complex air
pollution controls, makes this problem even worse. Social sustainability in the meantime
covers issues such as human rights, health and security and civic programs. The limited
literature on SCS from a social perspective focuses on how companies can identify and correct
social problems in their supply chains (Zorzini et al., 2015; Singh et al., 2019). The most
common method of identifying social issues in supply chains is evaluating codes of conduct
(e.g. Mamic, 2004) and certificates from outside parties (e.g. Hutchins and Sutherland, 2008;
Balasubramanian et al., 2020). When problems are detected, clients are also trying to enhance
their suppliers (e.g. Blome et al., 2014), implement a remediation program, such as more
routine audits and training in social change. Purchasers may also try to pay factories higher
rates or contracts. Previous studies were, however, generally carried out from the perspective
of the buyer or supplier and were carried out in developing countries as well (Huq et al., 2014).
The BRI opens up a network of companies and locations in China and Asia that reveals
supply chains that are potentially more remote, inexperienced and sustainably delayed.
Current literature should thus be extended to include (without visibility) subs-thirds of the
supply chain from the emerging and retail economies (Wilhelm et al., 2016).
In all, it stresses the need to increase responsibility in supply chains so that customers and
consumers can understand the origin and conditions of their products (Hofmann et al., 2018;
Singh, 2019, Babu, 20). Particularly, with suppliers in remote geographic regions of Central
China (e.g. suppliers in western China) or small and medium-sized enterprises (SMEs) this is
especially important. Moreover, SMEs are struggling, as Russell (2011) observed because
they have a lack of expertise, experience and capital for their transitional economies. This has
been a problem, however, in previous studies (e.g. Russell 2011) The possibility of using new
opportunities or staying behind local companies that currently make up a substantial part of
the regional economy is a major factor in the survival of the BRI, and the regional producers
need assistance in tackling new global challenges.

3. Methodology
The study was designed to be qualitative. Qualitative research is the process of
understanding the unique humanistic perception of a given situation and interpreting this
understanding to create a holistic picture within the naturalistic setting (Creswell, 2013).
Qualitative research is also used to provide detailed research into the how, what, when and
where, identify the relationships among individuals or entities and aid the development of
future hypotheses or research questions surrounding the phenomena (Zikmund, 1997). The
BRI has been the subject of investigation in disciplines such as political science and
economics. However, its application to the supply chain domain is very limited. Specifically,
empirical studies concerning the implication of the BRI on global supply chain management
are nonexistent. This gives support for the adoption of qualitative research design because
qualitative research offers an opportunity to transcend the shortcomings of existing
explanations (Weick, 2007; Yin, 2009). In addition, this qualitative study relies on a
phenomenological method. A phenomenological inquiry “is an attempt to deal with inner
experiences unprobed in everyday life” (Merriam, 2007, p. 7). The research study chose this
method to help identify the meaning behind the human experience as it related to a BRI and
phenomenon or notable collective occurrences (Creswell, 2013). sustainable
supply chains
3.1 Sample and sampling
Overall, 20 semi-structured interviews with senior managers from three supplying firms, two
transporters and two buying firms participating in the BRI were conducted. The
transportation sector was chosen because the BRI is essentially a transport infrastructure
initiative with potentially significant implications for global supply chains. The participating
firms were based in Pakistan, Bangladesh, China and Sri Lanka. A total of three supplying
firms were based in Pakistan, providing cement and steel products. At the same time, two
transportation centers were located in Sri Lanka and Bangladesh, mainly engaged in cargo
and freight handling. Finally, the buying firms were located in Mainland China, constructing
road and rail networks. Also, the senior managers interviewed in this study were designated
at different positions such as operations manager and procurement manager. Further details
pertaining to the profile of companies and interviewees are provided in Table 1. To begin the
sampling process, an email providing comprehensive information pertaining to the purpose
and objectives of the study was sent to each participant well ahead before interviews.
Furthermore, we relied on purposive and snowball sampling to recruit participants in this
study. To begin with, we used the one-industry platform to explain the objectives of the
research study and further exchanged contact information with the senior managers. Then,
the knowledgeable respondents were selected by using purposive sampling to begin the
interview process; a snowball sampling technique was used to continue to collect data as it
was very hard to locate participants on the phenomenon of interest. To sum up, the first
manager affected by the BRI was selected using purposive sampling. At the end of the
interview, these managers were asked to facilitate contact with another manager (snowball
sampling), whom they believe has been affected by the BRI and was in a position to provide
further information pertaining to impacts of the BRI on SCS.

3.2 Data collection


We interviewed senior managers from three manufacturing firms, two distribution and
transportation services provider centers and two buying firms from different participating
countries on a BRI lane (within Asian context only) using digital technology such as Zoom.
We initially targeted 40 respondents. Overall, 27 conversed and finally 20 agreed to
participate in the project. Participants were awarded gift cards for participating in the
research project. It is also important to mention that the participants were given the right to
withdraw at any stage of the data collection process. The respondents were assured of
anonymity and confidentiality throughout the interview process, which resulted in accurate
and unbiased response to the phenomenon of interest. To begin with, an email containing the
interview questions and objectives of the research study were sent well before the interview.
Furthermore, interviews were conducted from August 2019 until November 2019. All
interviews were conducted in English, lasted for 60–90 min and were transcribed and
recorded verbatim. Theoretical saturation was attained after 20 interviews as new themes
stopped emerging. Therefore, 20 interviews were found to be enough for data collection
purpose. Thorne (2020) argued that it is usually common to interview around 20 participants
to reach a point of saturation. Also, we relied on companies’ reports, websites and social
media for triangulation, as suggested by Creswell (2013) and Yin (2009), to develop a
converging line of inquiry. Moreover, it is pertinent to mention that an interview protocol was
developed using the main question. Then sub-questions were developed to elicit information
concerning the implications of the BRI on supply chain management. An interview protocol is
provided in Appendix A for further information.
BIJ Article Content

Hsu (2016) This study addressed issues such as innovative product development modes and also
provided constructive suggestions for its application in the manufacturing sector
Bao and Ma (2017) This article articulates key decisions considered during the development of the product
and its quality in parallel supply chains. It further sheds light on where two
manufacturers produce replacement products and then sell them to the downstream
retailers
Chen et al. (2017) This study develops a model based on game theory to analyze the competition between
two freight distribution modes specifically. It also uses strategic interaction methods that
are competitive and by considering the most cost-effective scale of the transportation
capacity
Du and Shi (2017) The paper uses dynamic games of incomplete information to analyze the game behavior
between the government and the local companies of the China Railway Express to study
whether the government subsidy policy is beneficial to the operation of the latter
Gallo et al. (2017) This paper develops a combined integer linear programming model intending to
minimize the total energy consumption in the cold supply chain of perishable products
Lee and Cho (2017) This article’s objective is to derive the final and optimal number of ports in a specific
scenario where ports are transshipping domestic cargos
Lin (2017) The paper focuses on developing a novel decision model for green supplier selection in
the BRI through a fuzzy-weighted average approach with social media
Zhang (2017) This study proposes an improved logistics path through the use of a selective algorithm
Chen and Yang The study addresses a port cluster problem that considers industry transfer and the
(2018) capacity constraints along the 21st Maritime Silk Road
Table 1. Ruan et al. (2019) The study proposes a concept of port service network that consists of a large hub and
Review of key multiple ports. Ports of small and medium sizes can share their capacities of different
literature on supply types of port service with the hub
chain management in Zhao et al. (2018) The study redesigns the supply chain of agricultural products in southwest China under
the context of the Belt the BRI to improve its eco-efficiency by considering the associated agro-wastes flowing
and Road Initiative into bioenergy enterprises for energy production

3.3 Data coding and the analysis


To code and analyze data, Strauss and Corbin (1990) suggested three different types of coding
such as open, axial and selective coding. Additionally, all interviews were analyzed on a line-
by-line basis. To fully maintain the objectivity of the data collection and coding process, an
additional analyst was invited to help with the coding and detailed analysis of data. Overall,
two analysts examined the data. During the open coding, both analysts segregated data into
different incidents, ideas, acts and events and further assigned a code representing these.
Furthermore, qualitative research computer software (NVivo) was used to facilitate the
coding process. NVivo allowed each analyst to code transcripts on their own and merge the
files later into one document to compare codes, once the analysis process was finished. NVivo
also facilitated the process of comparing inter-coder reliability. During the coding process,
when any differences occurred, both analysts decided to reach each other’s theoretical memos
to understand differences. Next, both analysts relied on axial coding to rearrange the data
that were initially broken down into codes/categories. Axial coding was also used to
understand how different categories relate to each other and cross-cut. Finally, selective
coding was employed to limit the coding process to variables of interest only (e.g. core
variables) and to examine the relationship between them further. The final coding process
resulted in six main implications of the BRI on supply chain management.
In order to ensure the trustworthiness of the findings, the four principles of Guba and
Lincoln (1994) were strictly followed:
(1) Credibility: the participants were asked to review the transcripts of the interview and
provide feedback on any misunderstandings or omissions;
Organization type Staff Position of interviewees Length of interview
BRI and
sustainable
Supplier I 20,000–30,000 (1) Operations manager (P1) (1) 60 min supply chains
(2) Logistics (P2) (2) 70 min
(3) Business unit coordinator (P3) (3) 60 min
Supplier II 15,000–20,000 (1) Logistics manager (P4) (1) 80 min
(2) Area sales manager (P5) (2) 90 min
(3) Sales manager (P6) (3) 75 min
Supplier III 15,000–20,000 (1) Customer service manager (P7) (1) 90 min
(2) Operations manager (P8) (2) 90 min
(3) Sales manager (P9) (3) 90 min
Transporter I 15,000–20,000 (1) Sales manager (P10) (1) 65 min
(2) Accounts manager (P11) (2) 60 min
(3) 70 min
Transporter II 20,000–30,000 (1) Customer service manager (P12) (1) 75 min
(2) Sales manager (P13) (2) 80 min
Buyer I 25,000–30,000 (1) Operations manager (P14) (1) 90 min
(2) Operations manager (P15) (2) 90 min
(3) Project coordinator (P16) (3) 85 min
Buyer II 20,000–30,000 (1) Procurement manager (P17) (1) 75 min
(2) Sales manager (P18) (2) 70 min Table 2.
(3) Purchasing manager (P19) (3) 67 min The profile of
(4) Accounts manager (P20) (4) 75 min companies

(2) Transferability: various participants were selected to represent variations in the type
of positions, responsibilities and regions. In addition, this study provides all
information including organizations, number and type of participants, data collection
process and interview period;
(3) Dependability: the codes developed for the same transcripts were compared with the
codes developed by the other researchers. With 83% similarity, the inter-coder
comparison was found satisfactory;
(4) Conformity: the findings were supported by quotes, periodic data review and
analytical procedures to avoid judgmental bias.

4. Findings
Respondents' narratives reveal that the BRI will result in excessive use of raw material,
higher generation of waste. Respondents' stories also stated that BRI would make it
challenging for firms to meet the environmental standards and to make responsible use of
green financing. These themes are discussed below in Sections 4.1.1, 4.1.2, and 4.1.3.

4.1 Use of excessive raw materials


Many respondents (P1, P2, P3 P4, P7, P11, P12, P13, P14, P15, P16 and P17) argued that there
are many input-related categories associated with the BRI, such as energy use, water,
ecosystems or other resources.
Respondents also narrated that hydropower is one of the largest projects of the BRI, which
is estimated to be around 22% of the entire BRI project, which calls for heavy reliance on such
inputs. Respondents further contended that the BRI also encompasses around 19% of the rail
infrastructure and 19% of the manufacturing, which is going to have a highly negative
climatic impact. Additional discussion with these respondents unveiled that the BRI will also
rely on coal power plants, which will result in higher greenhouse gas emissions. These
BIJ respondents also narrated that such coals power plants will generate solid waste. However,
little investment has been made in other renewable energy sources. Besides, the increased use
of raw materials and the so far lacking focus on renewable energy sources should be viewed
with concern and would need more transparent monitoring and assessment mechanisms to
be in place. Consider what P2 has to say
We have not yet fully developed an alternative source of energy. We are not viewing an increased use
of raw material as a matter of concern. I can tell you that there is a dire need to show more
transparency and robust assessment to assess the need for raw material needed to tackle
environmental issues better
Additional discussion with respondents (P14, P15, P16 and P17) provided support to the
abovementioned findings. These respondents stated that one of the main aims of the BRI is to
build a large-scale logistics infrastructure, including the building of extensive road and rail
networks. These respondents further stated that one of the major concerns that they
anticipate in the coming years is how participating countries are going to overcome
challenges pertaining to the excessive use of raw materials. These respondents also
contended that the BRI project encompasses many input-related categories such as the
reliance on the ecosystem, extensive usage of water and other natural resources.
Furthermore, the BRI would also rely on output-related categories such as greenhouse
emissions and perhaps non-air pollutants and other types of solid waste. Respondents
narrated that unfortunately very little investment has been done on creating alternate
sources of renewable energy. Therefore, they further advised that firms should create
alternate sources of renewable energy along the BRI lane. The following excerpt from the
interview of P17 provides support to the abovementioned findings.
BRI is going to build an extensive network of rail and road networks, which will require extensive
use of raw material. We are seriously concerned that what strategies the countries participating in
BRI will opt to manage such a huge waste. This is going to harm the environment. On the other side,
firms do not have any concrete plans to develop alternative sources to minimize the use of raw
material

4.2 Higher generation of waste


Generation of waste in BRI projects refers in this context to the output-related categories of
infrastructure investments, including gas emissions, air and water pollutants, solid waste,
etc. Many respondents (P1, P2, P3 P4, P5, P7, P12, P12, P13, P14, P15, P16, P17 and P18)
narrated that the simple composition of the BRI portfolio causes reason for concern.
Respondents further stated that that there are many proposed projects which come under the
umbrella of the BRI. Such projects are likely to become the largest point sources of air
pollution. Respondents further narrated that due to highly polluting technology, the
emissions impacts of the coal plants would be much worse, exceeding the emissions limits of
new coal-fired power plants in the Asian countries (Pakistan, Bangladesh and China).
Further discussion with respondents revealed similar stories. For instance, respondent P1
narrated a story about one of the projects that are owned by China and come under the banner
of the BRI. He argued that, while managing this project, the emission limits were found to be
much higher than international best practices, which is around PM2.5 AQI, 154. This
respondent further contended that these levels of air pollution could cause harm to the health
and livelihoods of the nearby population. Sadly, the respondent argued that thorough
environmental assessments by independent third parties that are in line with international
standards are not conducted or are not published publicly, making a more comprehensive
evaluation of the overall impact of BRI projects difficult. A quote by P15 provides support to
his findings.
I am leading one of these projects, which has a very high emission rate and causing the life of people BRI and
in danger in surrounding areas. I mean, it is really putting peoples’ life at stake, but we do not have
any proper mechanism in place to handle this. There is a very high emission rate among many other sustainable
small projects which run under BRI as well. There are no international standards in place to assess supply chains
the overall impact of such projects on human life
Some respondents (P1, P5, P9, P11, P15, P18, P19 and P20) also narrated that building such a
large-scale infrastructure will generate much waste. These respondents contended that it
does not seem possible to complete this megaproject without wasting resources. These
respondents further narrated that the BRI will generate plenty of waste and emissions.
Consider what P5 has to say
There will be more production plants and factories, which means more solid waste. The factories will
also emit a lot, which is likely to go above the internationally accepted standards. On the other hand,
production plants will release dangerous gases, which are going to cause harm to the health and
livelihoods of the inhabitants and nearby population. Firms should at first develop practices, which
can reduce such problems before they become a part of BRI
Discussion with respondents (P1, P2, P3 P6, P9, P7, P11, P12, P13, P14, P15 and P16) revealed
that the BRI can adversely affect the environmental conditions across the partnering
countries as there is a risk that many countries may begin to use the BRI actually to
outsource, which means there is going to be more pollution among the key industrial sections
and subsequently resulting in higher environmental degradation. These respondents further
contended that the BRI is a large-scale project and infrastructural projects on such mega-scale
can never be executed without polluting the environment. Therefore, how the BRI will be
executed while protecting the environment is indeed going to be one of the biggest challenges
for the BRI. These respondents further narrated that supply chains need to consider how they
are going to cope with this challenge. The BRI will affect SCS, and this will also hurt and seize
the value creation opportunities for firms.
Further discussion with three (P18, P19 and P20) respondents provided support to the
abovementioned findings. They all argued that the BRI will shrink that geographic distances
among the countries in terms of time, but the amount of the goods that will be transported and
or the distance that goods will travel is likely to increase. Therefore, the point still stands at
how sustainability can be maintained without compromising on environmental degradation.
These respondents narrated that as the amount of the goods that will be transported as well
as the distance to deliver them is likely to increase, then this can aggravate the climatic
conditions specifically in the developing countries which are yet struggling to overcome the
challenges pertaining to SCS. These respondents also argued that developing countries are
already a victim of environmental issues, and they have so far failed to handle this issue.
Consider the following quote which provides support to the abovementioned finding:
. . .. . .BRI will extend the network of firms and suppliers, which means it will be more challenging for
firms to measure the sustainability of their business operations. I would also like to highlight that as
a result of BRI; supply chains need to put in place, even more, benchmarking tools to save our
environment

4.3 Lack of proper environmental assessments


Interestingly, discussion with many respondents reveals that the BRI will make it extremely
difficult for firms to conduct proper environmental assessments. Respondents further
contended that China – since the inception of the BRI and even till now – has issued very
robust and stringent requirements of proper environmental standards. However, many firms
have failed to adhere to such stringent requirements imposed in the third-party BRI countries.
Additional discussion with two respondents (P11 and P21) revealed that only a handful of
BIJ companies are aware of the environmental standards that they have to follow and even
companies are aware that a standard is going to be more effective, they are eventually going
to use it as long as it is formally introduced and strictly imposed.
Further discussion with these additional respondents (P1, P7, P9 and P13) revealed that all
BRI-related projects must meet the requirements of the environmental standards. In other
words, all projects which will be executed under the umbrella of the BRI must go through an
environmental assessment. Also, these respondents stated that such an assessment must be
carried out by professional firms. Referring to the Chinese companies, respondents stated
that these companies are paying specific attention to environmental issues, when it comes to
conducting a project in third-party countries, and most notably in the developing countries or
other instances when these companies have to choose subcontractors. Otherwise, Chinese
firms might be challenged by locally based supply chains and communities, which will give a
disadvantage to the Chinese firms. These respondents further referred to the issues of
corporate social responsibility (CSR) and argued that China actually does perform a very
streamlined CSR performance assessment on their member companies and has further noted
that these companies are generally quite weak in managing their supply chains in terms of
CSR. The following excerpt provides support to the abovementioned findings.
Well, we believe that every single project shall be an assessment for its environment suitability.
Currently, there are only limited Chinese firms that are involved in conducting such assessments but
it is not widespread yet. What also concerns us is that Chinese companies are only focusing on
addressing environmental issues in third party countries or when they have to work with different
sub-contractors, which is a strong limitation
Additional discussion with three respondents (P4, P7 and P9) provided support to the
abovementioned findings. These respondents stated that Chinese firms are extremely
worried that they will be taken over by local supply chains if they did not pay proper attention
to the projects within China. P9 in particular stressed that China is not paying sufficient
attention to the projects within its jurisdiction, which is adversely affecting the sustainable
supply chains. These respondents also confirmed that Chinese firms within China are now
failing to adhere to CSR. Consider the following quote.

4.4 Responsible use of green financing


Respondents’ stories also unveiled that sustainable supply chains from the environmental
perspective would require reliance on many different sources of financing, which would
arguably be in a position to hold implementing agencies and participating governments to
different standards of sustainable procurement. Furthermore, a detailed discussion with
three respondents revealed that when it comes to the condition of securing loans or
discussing the conditions of financing between different financial institutions, China is most
certainly going to have an easy process of getting financing. These respondents further
narrated that Chinese banks are very much flexible in terms of complying with the terms of
finance and control.
Additional interviews with four respondents (P11, P16, P18 and P20) provided support to
the abovementioned findings. These respondents contended that there is a dire need for
financing agencies to implement stringent requirements on all of the projects which come
under the umbrella of the BRI. These respondents narrated that financing agencies have a
very important role to play from the environmental sustainability perspective. Respondents
further argued that the financing agencies should show commitment to investing in projects
only which are sustainable both in the long- and the short-run and projects that strictly
comply with the regulation of the environment. Financing agencies should also encourage
stakeholders to fully participate in the BRI projects and there should be transparency and
thorough monitoring of the project. Consider an excerpt from the interview of P18.
Well, if we particularly talk about Chinese firms, they most probably use their own Chinse banks to BRI and
identify any future project under BRI. Hence, there is a need to bring in independent agencies which
can bring more transparency into this process sustainable
supply chains
Further discussion with respondents (P18 and P17) provided support to the abovementioned
findings. These respondents narrated that when it comes to the BRI, the financing policy is
not very accurate and such sustainability requirements have not always been executed to the
fullest extent possible. However, these respondents also narrated that countries are now
doing their utmost to contribute to the best of their potential in this regard. These respondents
narrated that many initiatives including the Green Silk Road Fund have been established to
address the environmental concerns.

5. Discussion
5.1 Implications for theory and practice
While extant literature sheds some light on the role of the BRI within supply chain domain
(Hsu, 2016; Bao and Ma, 2017; Chen et al., 2017; Du and Shi, 2017; Gallo et al., 2017; Lee and
Cho, 2017; Hu et al., 2017; Hu, 2017), however, these studies use the BRI as a context only for
work conducted on other topics, and there is no empirical evidence about how the BRI can
impact the organization’s environmental supply chains. Indeed, the BRI is a megaproject
and unique phenomenon of this time, which is indeed worthy of observation and demands
empirical work specifically concerning the implication of the BRI on sustainable supply
chain management. Therefore, perhaps, this is the first study that provides empirical
evidence on the impact of the BRI on sustainable supply chains. In particular, our results
reveal that BRI has the potential to affect the environment through higher pollution (higher
gas emissions, water pollutants etc.), and excessive use of raw material. It will also affect the
way firms will manage their environmental standards as well as the effective use of green
financing. This should be of particular interest for firms located in remote areas as well as
SMEs in developing economies as they are already struggling to cope up with the expected
standards. Furthermore, while it is true that the BRI has experts working round the clock in
finding and solving problems that could emerge as a result of executing the BRI across
countries, most of them are unfortunately only looking at the problems from the lens of law,
economics, political and social sciences. Consequently, the full potential of the BRI on
supply chain management remains unexplored (Th€ urer et al., 2020). Our study, thus,
provides a much deeper and enhanced understanding of the implications that can emerge
for sustainable supply chain management as a result of the BRI not only from the context of
political and socioeconomic factors but also from the perspective of logistics and supply
chain management.
As the BRI expands established supply chains or even creates new ones, new
opportunities and challenges can be found. First, as stated earlier, the purpose of the BRI
is to allow increased freight via air, rail and maritime modes of transport. While all modes of
transport are encouraged, rail has become the most associated form of transport to the BRI.
Furthermore, rail’s advantage is that it is considered considerably cheaper than air and
quicker than the sea. The extension of logistics routes and the changing modes of transport
could likely affect the way businesses want to transport their goods. Consequently, the
environmental effect will derive from the decisions that businesses make about those
changes. If the net result is for businesses to prefer rail transport over air travel, then it may
have significant environmental effects. These findings are in agreement with extant literature
on the sustainable supply chains from an environmental perspective (Th€ urer et al., 2020).
Nevertheless, if rail transport balances other modes of transport (maritime), it could be
perceived as having a negative climate effect. Second, with strengthened transport links and
more bilateral trade agreements signed between China and third-party countries, this study
BIJ claims that Chinese companies are seeing increasingly favorable conditions for relocating
manufacturing facilities and logistics hubs to more low-cost regions. This trend has been
highlighted among multinationals establishing logistics hubs and finding suppliers along the
BRI lane. Establishing new logistics hubs in low-cost regions could, on the one hand, help to
incorporate these into global supply chains and boost economic growth, but it could also help
to leverage the lower environmental standards. These findings are in agreement with extant
literature on the BRI within the context of supply chain management, suggesting that the BRI
will boost economic growth and help firms overcome lower environmental standards (Chen
et al., 2017). Our results also highlight that the BRI will make it extremely challenging for
firms to adhere to the environmental assessments and firms which will not be able to fully
comply with the environmental assessments will be put under greater scrutiny to implement
such requirements to meet the standards of the environment. Our results provide empirical
support to a recent study on the role of the BRI in sustainable supply chains (Hsu et al., 2016).
In addition, there will be many non-Chinese banks which will have a hard time securing
financing options to support the projects which come under the umbrella of the BRI, as results
suggest that banks operating outside China are not very much flexible in terms of meeting
internal compliance and control systems. Finally, our results indicate that non-Chinese banks
would struggle to secure better financing schemes either to initiate or continue with different
BRI-related projects, and Chinese banks would continue to dominate due to ease of restriction
for them. The findings once again provide empirical support to the sustainable supply chain
literature within the context of the BRI. For instance, Zheng et al. (2017) argued that non-
Chinese banks will struggle to cope with sufficient environmental standards due to the least
access to sufficient financing.
Firms will encounter difficulties in searching for new partners, and the problems for firms
would be linked to identifying and working with new suppliers and partners. Furthermore,
firms should develop relationships with suppliers which can meet international production
standards. We also suggest firms to try to avoid working with suppliers based in remote
areas as firms may struggle to monitor their work process. In order to make the environment
more sustainable, businesses should maintain a commitment to a strict code of conduct and
implement high standards of CSR while developing operations in new regions and nations.
The net result would depend on the company’s standards, internally that would be in terms of
due diligence before third-party operations are developed and an existing code of conduct is
implemented. Outside, this would mean adhering to greater global openness, tightening
international standards and rising demands in the market. As observed from results, while
discussing the on-the-ground implementation of BRI projects, sustainability aspects are
emphasized as problematic. This study presented a few cases concerning the environmental
issues that arose in the context of BRI projects. Firms would also need to hold a strong official
commitment to sustainable development, especially for the environment and a local
environment that can be ridden with environmental risks. We also advise firms to take both a
holistic and practical business approach about the BRI, taking into account the implications
of the initiative from the aspect of changing supply chains in the region. Through this aspect,
the BRI can be seen as having an impact on firms and careful review should be carried out to
adapt or even influence new market conditions.

6. Limitations and future research directions


This study has some limitations. First, this study relies on a small sample size of 20
interviews. Thus, its results cannot be generalized to the broader population. Second, this
study chooses sample size from Asian countries only located on the BRI lane. Moving on,
there are additional avenues for future research in this emerging area. First, the findings from
this study should be tested through a quantitative analysis to demonstrate its conformity.
Besides, the BRI gives access to a part of the world that has been neglected for many years
due to its restricted or limited access to human and natural resources. So, future research BRI and
should explore how resilient supply chains can be created that can link developed economies sustainable
with developing ones. The scale of the BRI is very wide and calls for the use of more advanced
techniques to support multicriteria supply chain configuration decisions. We also suggest
supply chains
future research studies to examine supply chain configuration using data analytics and the
use of multiple methods, as suggested by Th€ urer et al. (2019).
Furthermore, the challenges and opportunities of this mega infrastructure project are
likely to be unique and different from smaller infrastructure initiatives within a single
country. Therefore, future research should first attempt to reveal the specific problems
associated with the BRI and then should move onto exploring the possible solutions to solve
these problems. Conducting such research (identifying problems and proposing solutions)
can provide significant insights into other large-scale infrastructure projects that might be
appearing in the next two to three decades. Certain factors can also influence the adoption of
the new infrastructure provided by the BRI. Hence, scholars in supply chain management
should attempt to unveil these factors.
Additionally, we argue that the BRI cab is viewed either as an economic activity giving a
boost to the country’s gross domestic product (GDP) or it can increase the economy’s
expenditure otherwise. Future research should, therefore, look into what extent the decision
to adopt the BRI is viewed as an economic opportunity or perhaps a cost associated with
doing business in the developing countries. Most importantly, the BRI is a very interesting
phenomenon, yet lacks empirical work. Future research should, therefore, conduct more
empirical work on this topic area and perhaps delve deeper into asking questions as to what
the BRI means for supply chain management literature?

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Appendix A

Interview guide
Thank you very much indeed for participating in this study. We are conducting a study on the possible
implications of the BRI on sustainable supply chains. We know that you are an expert in this area and,
therefore, we would like to interview you. Please note that there are no right and wrong answers, and our
sole intention is just to learn from your experience.
BIJ (1) What does the BRI mean to you?
(2) What do you think are the benefits attributed to supply chains while being a part of the BRI?
(3) What are some of the challenges that supply chains can face while being a part of the BRI?
(4) What your firm has done so far to address the issue of sustainability?
Thank you very much, indeed, for your time. As soon as we are done with data collection and the
analysis, we will update you. Meanwhile, if you have any questions, then please do not hesitate to contact
us.

Corresponding author
Atif Saleem Butt can be contacted at: atifbutt10@hotmail.com

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