An Integrated Multi-criteria Structural Equation Model for Green Supplier Selection

Abstract

The aims of the current study are to determine the criteria to be considered in a green supplier selection (GSS) process, develop an integrated decision-making approach using structural equation modelling (SEM) and fuzzy additive ratio assessment (ARAS) techniques to rank suitable suppliers, and investigate the effectiveness of this approach in collective decision-making. The study’s ultimate objective is to propose a method created from the perspective of fuzzy logic in which criterion weights are determined using SEM to resolve decision-making challenges such as GSS, in which a compromise solution is desired. In the first stage of the study, relevant literature as examined in detail. Eight main criteria and 27 sub-criteria were detected, taking into account classical, green, and social supplier selection (SS) criteria. A questionnaire was administered to 254 participants who were actively involved in SS processes for their companies, and the data were analyzed using SEM. In the second phase, six suppliers were evaluated considering the criteria found to have a positive impact on GSS, and fuzzy ARAS was applied. The results showed that the factors affecting GSS are quality (0.291), social responsibility (0.222), service (0.21), cost (0.149) and green product (0.128). The study presents an effective, objective, and fast method that can be used in decision-making problems such as GSS, that prevents potential loss of information and lack of transparency through an integrated approach, and that can be tested with a generalizable framework. The proposed hybrid method is an efficient and practical approach that can be tested on many decision-making problems, such as SS.

Lean and Sustainable Supplier Selection in the Furniture Industry

“…The new approach was successfully used to conclude that Supplier 1, which demonstrated the best performance, should be chosen as the vendor. The approach developed in the study could be used for effective and impartial strategic decision-making, especially in challenging situations like GSS where conflicts of opinion could be intense [46].…”

Involvement of micro, small and medium entrepreneurs (MSMEs) in takaful in Sri Lanka: an extension of theory of planned behaviour

“…In terms of providing ideas, managers decision making process, potential loss of information and relative lack of transparency, scalable, generalisable are prevented through the GSS process (Baki, 2022). Best worst method and fuzzy TODIM techniques were also developed and tested beyond SEM and fuzzy ARAS techniques to solve the problems arising in environmental economics and social concepts.…”

Lean, Agile, Resilient, Green, and Sustainable (LARGS) Supplier Selection Using Multi-Criteria Structural Equation Modeling under Fuzzy Environments

“…The selection of suppliers plays a major role in determining the competitiveness of an entire supply chain network [1]. The process of selecting suppliers is a vital part of strategic operations, and making incorrect decisions in this area can lead to severe and wide-ranging consequences [2]. Supplier management is considered a critical aspect of supply chain management, as it has implications for the overall performance and long-term relationships of a company.…”