A hybrid multi‑criteria decision approach to analyze key factors affecting sustainability in supply chain networks of manufacturing organizations

Abstract

Companies are under increasing pressure to inculcate sustainability in their supply chain networks. However, the companies face significant amount of barriers in pursuit of implementing sustainability initiatives in their supply chain networks. The study helps to identify and understand the key factors (barriers and drivers) that impact the sustainability in the supply chain networks at the organizational level (intrinsic) and country level (extrinsic). The present research combines fuzzy-based analytical hierarchy process with fuzzy Technique for Order of Preference by Similarity to Ideal Solution methods to rank the barriers to the sustainability adoption in companies and the drivers that assist in overcoming these barriers, respectively. The barriers are ranked using the fuzzy AHP method, while the fuzzy TOPSIS method is used to prioritize the drivers. Prioritizing the drivers will aid the companies to focus on the top-ranked drivers and formulate strategies for effective sustainability implementation. The sturdiness of the proposed model is judged by a sensitivity analysis test. Lack of regulations, lack of top management commitment and financial constraints are identified as top three barriers, whereas product quality improvement, integration of sustainability principles into decision making, and pressure from consumers and investors are the three most significant drivers for achieving sustainability in supply chain networks. In this study, a significant number of barriers and drivers have been analyzed that will help sustainability managers to develop a better understanding of the severity of different barriers and significance of the drivers for improving the sustainability in their supply chain networks.