Is digital twin a better solution to improve ESG evaluation for vaccine logistics supply chain: an evolutionary game analysis

Mengdi Zhang, Wanting Yang, Zhiheng Zhao (), Saurabh Pratap, Wei Wu and George Q. Huang
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Mengdi Zhang: Nanjing University of Posts and Telecommunications
Wanting Yang: Nanjing University of Posts and Telecommunications
Zhiheng Zhao: The Hong Kong Polytechnic University
Saurabh Pratap: Indian Institute of Technology (BHU)
Wei Wu: Chongqing University
George Q. Huang: The Hong Kong Polytechnic University

Operations Management Research, 2023, vol. 16, issue 4, No 9, 1813 pages

Abstract: Abstract In recent years, the COVID-19 pandemic has underlined the important role of the vaccine logistics supply chain (VLSC) in supporting public health, safety, and societal value. Simultaneously, environmental, social, and governance (ESG) evaluation appeared in the business and government to tackle sustainable development issues. Therefore, how to effectively govern the cold chain logistics service providers (CCLSPs) to perform better in ESG evaluation becomes an interesting research topic. This paper systematically analyzes the influence of digital twin service (DTS) on ESG evaluation and analytically investigates the long-term behavior of sustainability concerned stakeholders in the VLSC. Firstly, an architecture of DTS enabled ESG evaluation for VLSC is proposed to describe the DTS effectiveness. After that, a tripartite evolutionary game model in a two-tiered VLSC including CCLSPs, the public, and government regulators is proposed. And the conditions for the existence of equilibrium stable points are derived to capture the feature of the government incentives and the role of the public in the DTS investment decisions of CCLSPs. The governance mechanisms, such as the enactment of penalty and bonus, are discussed for facilitating the DTS investment in the VLSC to improve the ESG evaluation of CCLSPs. The association of the factors is validated by using analytical sensitivity analysis. The results manifest that government oversight will promote ESG improvement in the logistics market equipped with DTS. The public will be the driving force behind the refusal of CCLSPs to invest in DTS. It is evident that DTS can offer better solutions for the improvement of ESG assessment for VLSC with different strategic stakeholders.

Keywords: Digital twin; ESG evaluation; Vaccine logistics supply chain; Evolutionary game; Governance mechanism (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s12063-023-00385-w

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