Fuzzy DEMATEL-based green supply chain management performance. Application in cement industry
| Date | 12 March 2018 |
| DOI | https://doi.org/10.1108/IMDS-03-2017-0121 |
| Published date | 12 March 2018 |
| Pages | 412-431 |
| Author | Yigit Kazancoglu,Ipek Kazancoglu,Muhittin Sagnak |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
Fuzzy DEMATEL-based green
supply chain management
performance
Application in cement industry
Yigit Kazancoglu
Department of International Logistics Management, Yasar University,
Izmir, Turkey
Ipek Kazancoglu
Department of Business Administration, Ege University, Izmir, Turkey, and
Muhittin Sagnak
Department of Information and Document Management,
Izmir Kâtip Celebi University, Izmir, Turkey
Abstract
Purpose –Performance assessment of green supply chain management (GSCM) requires a systematic
approach because of its interdisciplinary and multi-objective nature. The purpose of this paper is to proposea
model to the performance assessment of GSCM.
Design/methodology/approach –A model is proposed, grounded on a literature review on GSCM
performance, after which the causal relationships and prioritization of the sub-criteria are analyzed by fuzzy
Decision Making Trial and Evaluation Laboratory technique in a company operating in the cement industry.
Findings –An integrated holistic performance assessment model incorporating specifically six criteria and
21 sub-criteria is applied, which represents causal relationships and prioritization of sub-criteria.
Research limitations/implications –The proposed model can be generalized, because an integrative
framework can be used in future empirical studies to analyze performance of GSCM. However, the causal
relationships and prioritization among sub-criteria are analyzed based on the needs and capabilities of the
individual company; therefore, the causal relationships found are company specific.
Practical implications –The proposed model can be hired and implemented by companies striving for
GSCM. This model allows companies to assess their current GSCM performance, analyze causal relationships,
and prioritize sub-criteria.
Originality/value –Several studies have analyzed performance assessment in green supply chains;
however, to the best of th e authors’knowledge, no study has taken an approach to performance assessment
in GSCM that combines env ironmental, economic s/financial, logis tics, operational, org anizational and
marketing in the same fr amework. In addition, the cause-effe ct relationships identified will be th e base for
performance improve ment.
Keywords Sustainability, Fuzzy DEMATEL, Green supply chain management, Cement industry,
Performance assessment
Paper type Research paper
1. Introduction
Increasing competition and stricter regulations on the environment and public pressure are
forcing companies to include environmental factors in their strategic planning and to
establish corporate environmental strategy (Zhu et al., 2008). Green consciousness has
evolved as a competitive advantage among firms since the late 1980s and early 1990s; while
other motivating factors include economic benefits, concerns on legislation, pressures from
stakeholders, corporate social responsibility and ethics (Sarkis, 2003; Hervani et al., 2005).
Companies have become aware of the importance of green issues in the supply chain in
decreasing waste, increasing product quality and protecting natural resources for
sustainability (Min and Kim, 2012).
Industrial Management & Data
Systems
Vol. 118 No. 2, 2018
pp. 412-431
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-03-2017-0121
Received 30 March 2017
Revised 8 May 2017
29 May 2017
Accepted 14 June 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0263-5577.htm
412
IMDS
118,2
As the companies focused on green initiatives, green supply chain management (GSCM)
emerged as an important corporate strategy (Zhu and Sarkis, 2006), in order to obtain
competitive advantage and to enhance customer satisfaction (McKinnon et al., 2015) as well
as decreasing environmental impacts. Companies started to apply GSCM to increase market
share and profit, to mitigate environmental risks, to improve responsiveness through
flexibility in the range of products (Murray, 2000) and therefore to achieve competitive
advantage (Lee et al., 2009).
Zhu and Sarkis (2006) state that GSCM can be considered as green purchasing and
manufacturing, which covers green design, production, recycling in line with the green
regulations. To achieve an effective GSCM, cooperation and collaboration among the GSCM
partners is essential, particularly with suppliers and customers, where increase in profit and
market share can be achieved and competitive advantage can be obtained.
According to Zhu et al. (2005), GSCM activities and practices are not single company-
based activities, but rather depend on inter-organizational environmental management,
incorporating industrial ecosystems, product life cycle analysis, and increased manufacturer
responsibility. Inter-organizational and cross-functional integration of environmental,
production, engineering, marketing, and logistics personnel and their concerns are the
characteristics of effective GSCM (Sarkis, 2006). GSCM integration has been associated with
improved operational performance, such as lead time, productivity, and timely delivery
(Chen et al., 2004).
The main aims ofGSCM are to decrease cost, minimizeresource use and pollutionthrough
green production, increase market share, improve brand image and enhance financial
performance by improving environmental and social performance (Dawei et al., 2015).
GSCM requires a significant enhancement in processes and products in order to satisfy the
stricter regulations (Hsu and Hu, 2008). Therefore, green performance assessment becamean
important issue for all companies.
As a business target, sustainable development involves the attempt to balance economic,
environmental and social performance ( Jabbour and Jabbour, 2009; Lee et al., 2009).
The main driver for “green”supply chain is to reduce cost and reach profitability
(Srivastava and Srivastava, 2006).
The first contribution of this study is to identify the different dimensions of GSCM,
including environmental, economic/financial, operational, logistics, organizational, and
marketing performances. It also supports manufacturers in the understanding of the
systematic and holistic assessment of GSCM performance through the identification of
criteria and sub-criteria. It can be said that, this contribution has two phases: a theoretical
holistic GSCM framework, and an application-oriented GSCM framework through criteria
and sub-criteria.
The second contribution is the inclusion of the marketing dimension in GSCM
performance evaluation. Liang and Chang (2008) indicated that the main effect of GSCM is
to allow the development of green marketing. Therefore, it was necessary to add sub-criteria
related to the marketing dimension, i.e., increasing customer satisfaction, marketing
measures, and improving cooperation/collaboration with customers.
The aim of this study is to propose an overall GSCM performance assessment
framework. In this paper, the established fuzzy Decision Making Trial and Evaluation
Laboratory (DEMATEL) method was applied to a new context. Fuzzy DEMATEL method
was used in order to identify the importance and causal relationships between the
sub-criteria and consequently, to create a structural model. Converting fuzzy data into crisp
scores (CFCS) method was used to convert fuzzy judgments into crisp scores.
The remainder of the paper is structured as follows. The review of the literature on
GSCM and GSCM performance items, respectively, are presented in Section 2. The proposed
model presents criteria and sub-criteria of GSCM performance in Section 3.
413
Fuzzy
DEMATEL-
based GSCM
performance
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