Investigating interdependencies of sustainable supplier selection criteria: an appraisal using ISM

Abstract

PurposeBecause of the increased global competition and the need for environment consciousness, organisations have started focusing on incorporating sustainability dimensions into suppler selection criteria. In the past decade, sustainable supplier selection has received much attention from researchers as well as industry practitioners. The purpose of this paper is to identify various sustainable supplier selection criteria (SSSC) and underlying interdependencies among prominent selection criteria to develop a framework for sustainability dimensions.Design/methodology/approachThe sustainable criteria for supplier selection were established through comprehensive literature review. An interpretive structural modelling (ISM) approach is used to investigate the interrelationships among these criteria.FindingsA total of 21 SSSC under 3 dimensions (social, environmental and economic) are established. Ten criteria related to quality, capability, flexibility, waste management, pollution prevention, local community, employment practice, labour, etc. are exhibiting strong driving as well as dependence power, as demonstrated through ISM and matriced’ impacts croises-multiplication applique’ and classement (MICMAC) analysis. The findings show that delivery/service, eco design and rights of stakeholders are the “key” criteria having a high-driving and low-dependence power. These criteria require high attention from managers, while other criteria having low-driving and high-dependence power require secondary actions.Research limitations/implicationsThe inter-relations for the development of ISM model and MICMAC analysis were obtained through the opinion of industry experts and academicians, which may tend to be subjectively biased. Further exploration is proposed to statistically validate the developed interdependency model.Practical implicationsThis paper might act as a reference for the supplier development managers of organisations by providing an appraisal of various SSSC based on their interdependencies.Originality/valueThis study contributes to the knowledge base by proposing a framework of the interrelationships of the SSSC and also provides an additional perspective for managing these criteria based on ISM.