Performance-Based Governance of Trade Corridors: Designing a Balanced Scorecard Integrating the TCEI Dimensions

Abstract

Within the boundaries of the current paper, it is suggested that performance-based governance of trade corridors should be approached with an incorporation of the three dimensions of the Trade Corridor Efficiency Index (TCEI) which includes time efficiency, infrastructure quality and geopolitical risk into a Balanced Scorecard model. The framework makes use of these dimensions of TCEI and converts them into strategic Key Performance Indicators (KPIs) to evaluate and enhance the performance of trade corridor governance. Through real-life case studies and the simulation model, the research identifies how the proposed model can make the infrastructure more efficient, align policies, and make up the resilience in geopolitically and infrastructural affected corridors. The results prove the applicative power of the TCEI-based Balanced Scorecard to serve as a decision-making tool, help to detect gaps in the performance, and inspire the specific investment. The study provides a unique instrument the policymakers and the logistics entities can use to evaluate the performance of trade corridors and the enhancement of global trade environment.