A two-stage model for monitoring the green supplier performance considering dual-role and undesirable factors

Abstract

PurposeThe purpose of this paper is to monitor the environmental efficiency of suppliers in the presence of undesirable output and dual-role factors with static and dynamic aspects. Meanwhile, it also aims to explain the main reason for the low efficiency of suppliers.Design/methodology/approachThe authors propose a modified data model considering undesirable output and dual-role factors. The study integrates the modified data envelopment analysis model into the distance function of the Malmquist–Luenberger index. Moreover, this study uses the global benchmark technology to formulate a two-stage model. To verify the validity of this model, a model application is conducted on an automotive spare components company in China.FindingsThe results identify the unique status of dual-role factors based on the global optimality of the model and then categorize inefficient suppliers in an individual evaluation cycle. In addition, each supplier is projected on a frontier curve after obtaining the improved data. Furthermore, through the status plot of M-L and its components, this paper concludes that efficiency scale change is the main reason for the gap in ecological performance between different suppliers.Research limitations/implicationsThe proposed model considers both undesirable output and dual-role factors; however, variables with different features, such as imprecise, fuzzy and qualitative characteristics, can be embedded into the presented two-stage model.Originality/valueEvaluating green suppliers through multiple consecutive evaluation cycles will aid a company in effectively managing its key suppliers. Furthermore, the evaluation provides policy guidance for further improvement of suppliers.