Applying a Hybrid MCDM Model to Evaluate Green Supply Chain Management Practices
Abstract
:1. Introduction
- The effectiveness of different GSCM strategies and practices. Few studies discuss which strategies and practices are most effective for reducing supply chains’ environmental impacts and improving business operations’ sustainability;
- The costs and benefits of GSCM. Existing studies do not investigate the financial implications of implementing GSCM practices, and the costs and benefits of these practices compared with those of other business strategies;
- The potential barriers and challenges to implementing GSCM. Few studies explore the obstacles and challenges that organizations face when trying to implement GSCM practices, and how these challenges can be overcome;
- The role of government and other external stakeholders in promoting GSCM. Few studies explain the ways in which governments and other stakeholders can support and incentivize the adoption of GSCM practices.
2. Literature Review
2.1. Evaluation of GSCM Practices
- Identify the goals and objectives of the corporation’s GSCM efforts. This is based on the triple bottom line theory that organizations have three bottom lines: financial, social, and environmental. According to this theory, organizations should strive to balance their performance across these three dimensions in order to be truly sustainable and successful [29]. This could include reducing the supply chain’s environmental impact, improving its operations’ sustainability, or achieving other goals related to environmental responsibility;
- Develop metrics and benchmarks for evaluating the corporation’s GSCM practices. These metrics could include the corporation’s carbon footprint, waste reduction, water use, energy consumption, and other environmental performance indicators;
- Collect and analyze data on the corporation’s GSCM practices. This could involve conducting surveys, interviews, and other research to gather information on the corporation’s current practices and environmental impact;
- Compare the corporation’s performance on the selected metrics and benchmarks with those of other organizations in the same industry or with predetermined goals. The resource-based view theory proposes that organizations should focus on managing and leveraging their internal resources, such as their knowledge, skills, and capabilities, in order to create a competitive advantage and improve their performance. In the context of GSCM, this could mean building expertise and capabilities in areas such as waste reduction, energy efficiency, and sustainable sourcing [30]. This could involve using data envelopment analysis (DEA) or other performance evaluation methods to assess the corporation’s efficiency and identify areas for improvement;
- Develop and implement strategies for improving the corporation’s GSCM practices. The sustainability theory suggests that organizations should strive to achieve long-term sustainability by balancing the economic, social, and environmental dimensions of their activities. In the context of GSCM, this could mean considering the long-term impact of the organization’s practices on the environment and finding ways to reduce that impact [31]. This could include identifying and addressing inefficiencies, reducing waste and emissions, and implementing other strategies to enhance the environmental performance of the corporation’s supply chain.
2.2. Environmental Dimension
- Green design (A11) refers to a company’s consideration of a product’s potential harm to humans, spanning from conception to preliminary design, to final design. It also takes into account any possible effects on the environment and the level of resource wastage [43];
- Green production (A13) relates to the requirement for companies to respect and protect the natural environment in their production process, creating a GSC system [34]. Green production focuses on how the integration of green resources in the supply chain can effectively enhance corporate image and implement environmental protection policies [34];
- Optimal resource allocation (A14) assesses whether a company utilizes resources effectively, which would help them avoid or reduce waste to maximize profits [33].
2.3. Social Dimension
- Compliance with regulations (A21) means investing in green manufacturing processes to reduce the use and production of hazardous substances, while simultaneously reducing water, land, and air pollution to comply with various laws and regulations [2];
- Liability risk (A22) involves the use of hazardous substances or processes that cause harm to people or the environment, which in turn makes the company bear liability and damage its reputation [37];
- CRM capability (A23) is the process by which consumer trust is strengthened through green manufacturing. It can also enhance customer loyalty, because of cost reduction and quality improvement [36];
- Social requirements (A24) refer to the requirements placed on companies by society to fulfill their responsibilities in product safety and environmental protection [38].
2.4. Economic Dimension
- Supply chain requirements (A31) are based on green manufacturing requirements. Upstream manufacturers must pay attention to environmental protection throughout the production process, including when acquiring raw materials, processing, packaging, storage, transportation, use, and disposal of products [39];
- Market expansion (A33) assesses a company’s ability to obtain international certification for its green manufacturing processes, which is helpful for corporate developments and new market expansions [40];
- Cost reduction (A34) assesses how companies maximize resource utilization, reduce resource consumption, and directly cut costs through process-based improvements, innovative designs, or new technologies [12].
2.5. Organization Dimension
- Stakeholders (A41) refer to stakeholder participation, including shareholders and their views on environmental protection [41];
- Corporate image (A42) refers to the WCI’s corporate image, which is an important asset of any modern company. Through the promotion of green manufacturing and an emphasis on environmental protection, a high-quality corporate image can be created [42];
- Supervisor support (A43) refers to the degree of support provided by supervisors in the concept of green manufacturing and related initiatives [12];
- Employee motivation (A44) refers to employees’ awareness and understanding of green manufacturing and their ability to cooperate with relevant corporate policies and regulations actively [43].
3. Methods
4. Results
4.1. Dimension Relevance
4.2. Data Analysis of Dimension and Criterion Weights
5. Discussion
- Financial barriers: Implementing GSCM practices may require a significant investment of time and resources, which can be a barrier for organizations facing financial constraints or not willing to make the necessary investment;
- Cultural barriers: Organizations may face resistance from employees or other stakeholders who are not supportive of green initiatives, or who may be skeptical about the benefits of GSCM. Overcoming this resistance and building support for green initiatives can be challenging;
- Technical barriers: Implementing GSCM practices may require organizations to invest in new technologies and systems, and to develop new skills and expertise. This can be a barrier for organizations that do not have the necessary technical resources or capabilities;
- Regulatory barriers: Organizations may face barriers in the form of regulations or other legal requirements that limit their ability to implement GSCM practices. For example, some countries may have regulations that restrict the use of certain materials or technologies or require organizations to meet certain environmental standards. For GSM, and organizations may need to overcome these barriers to successfully implement these practices.
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statements
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
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Dimension | Criteria | References |
---|---|---|
Environmental (D1) | Green design (A11) | [32,33] |
Green procurement (A12) | [34,33] | |
Green production (A13) | [32,34] | |
Optimal resource allocation (A14) | [35,33] | |
Social (D2) | Compliance with regulations (A21) | [2,36] |
Liability risk (A22) | [37] | |
Customer relationship management (A23) | [35,36] | |
Social requirements (A24) | [37,38] | |
Economic (D3) | Supply chain requirements (A31) | [39,40] |
Improving business performance (A32) | [32] | |
Market expansion (A33) | [40] | |
Cost reduction (A34) | [12,32] | |
Organization (D4) | Stakeholders (A41) | [12,41] |
Corporate image (A42) | [12,42] | |
Supervisor support (A43) | [12,35] | |
Employee motivation (A44) | [43,35] |
Expertise | Specialist Background | Number of Specialists |
---|---|---|
Practical Experience(years) | 1–10 11–20 21–30 | 2 6 6 |
Field | Academia Manufacturing industry | 4 10 |
D1 | D2 | D3 | D4 | |
---|---|---|---|---|
D1 | 0.00 | 2.77 | 2.62 | 2.23 |
D2 | 2.85 | 0.00 | 2.54 | 2.38 |
D3 | 2.46 | 2.31 | 0.00 | 2.31 |
D4 | 2.77 | 2.23 | 2.92 | 0.00 |
D1 | D2 | D3 | D4 | |
---|---|---|---|---|
D1 | 0.00 | 0.34 | 0.32 | 0.28 |
D2 | 0.35 | 0.00 | 0.31 | 0.30 |
D3 | 0.30 | 0.29 | 0.00 | 0.29 |
D4 | 0.34 | 0.28 | 0.36 | 0.00 |
D1 | D2 | D3 | D4 | r | |
---|---|---|---|---|---|
D1 | 3.85 | 3.84 | 4.10 | 3.64 | 15.43 |
D2 | 4.17 | 3.64 | 4.15 | 3.71 | 15.68 |
D3 | 3.88 | 3.61 | 3.64 | 3.46 | 14.60 |
D4 | 4.22 | 3.91 | 4.23 | 3.53 | 15.88 |
d | 16.12 | 15.00 | 16.12 | 14.34 |
r | d | r + d | r-d | |
---|---|---|---|---|
D1 | 15.43 | 16.12 | 31.55 | −0.69 |
D2 | 15.68 | 15.00 | 30.67 | 0.68 |
D3 | 14.60 | 16.12 | 30.72 | −1.53 |
D4 | 15.88 | 14.34 | 30.23 | 1.54 |
Dimension | Criteria | Global Weight | Rank | Dimension Local Weight | Criteria Local Weight |
---|---|---|---|---|---|
Environmental | Green design | 0.0645 | 6 | 0.262 | 0.2460 |
Green procurement | 0.0626 | 8 | 0.2388 | ||
Green production | 0.0659 | 3 | 0.2517 | ||
Optimal resource allocation | 0.0690 | 1 | 0.2635 | ||
Social | Compliance with regulations | 0.0621 | 9 | 0.244 | 0.2545 |
Liability risk | 0.0637 | 7 | 0.2610 | ||
Customer relationship management | 0.0581 | 14 | 0.2382 | ||
Social requirements | 0.0601 | 11 | 0.2463 | ||
Economic | Supply chain requirements | 0.0637 | 7 | 0.261 | 0.2442 |
Improving business performance | 0.0653 | 5 | 0.2503 | ||
Market expansion | 0.0664 | 2 | 0.2544 | ||
Cost reduction | 0.0655 | 4 | 0.2510 | ||
Organization | Stakeholders | 0.0559 | 13 | 0.233 | 0.2399 |
Corporate image | 0.0593 | 12 | 0.2546 | ||
Supervisor support | 0.0610 | 10 | 0.2619 | ||
Employee motivation | 0.0568 | 15 | 0.2436 |
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Tsai, J.-F.; Shen, S.-P.; Lin, M.-H. Applying a Hybrid MCDM Model to Evaluate Green Supply Chain Management Practices. Sustainability 2023, 15, 2148. https://doi.org/10.3390/su15032148
Tsai J-F, Shen S-P, Lin M-H. Applying a Hybrid MCDM Model to Evaluate Green Supply Chain Management Practices. Sustainability. 2023; 15(3):2148. https://doi.org/10.3390/su15032148
Chicago/Turabian StyleTsai, Jung-Fa, Shih-Ping Shen, and Ming-Hua Lin. 2023. "Applying a Hybrid MCDM Model to Evaluate Green Supply Chain Management Practices" Sustainability 15, no. 3: 2148. https://doi.org/10.3390/su15032148
APA StyleTsai, J.-F., Shen, S.-P., & Lin, M.-H. (2023). Applying a Hybrid MCDM Model to Evaluate Green Supply Chain Management Practices. Sustainability, 15(3), 2148. https://doi.org/10.3390/su15032148