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PII: S0959-6526(19)34309-4
DOI: https://doi.org/10.1016/j.jclepro.2019.119439
Reference: JCLP 119439
Please cite this article as: Giannakis M, Dubey R, Vlachos I, Ju Y, Supplier sustainability performance
evaluation using the analytic network process, Journal of Cleaner Production (2019), doi: https://
doi.org/10.1016/j.jclepro.2019.119439.
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1*
Audencia Business School, Nantes, France (corresponding author)
Email: mgiannakis@audencia.com
2
Montpellier Business School, Montpellier, France
Email: ramewshwardubey@gmail.com
3
La Rochelle Business School, La Rochelle, France
Email: ivlachos@gmail.com
4
Beijing Institute of Technology, Beijing, China
Email: juyb@bit.edu.cn
Abstract
We develop a sustainability performance measurement framework for supplier evaluation and selection, using
the Analytic Network Process (ANP) method. Even though the literature is rife with studies that deal with the
supplier selection problem, companies that actively pursue sustainability strategies may need to add metrics
that show suppliers’ sustainability performance. Existing models for measuring sustainability performance are
limited in that they either evaluate the environmental and social performance separately, do not consider the
inter-relationships between metrics across the three dimensions of sustainability, or utilize metrics that are
difficult to obtain and evaluate accurately. To overcome this deficiency, we use the ANP method, that takes
into account the interrelations between quantifiable and easy to obtain sustainability-related evaluation
metrics. First, through an extensive literature review and feedback from an experts’ panel, we select and
classify salient sustainability performance metrics related to supplier evaluation. With data collected through
an extensive survey amongst 144 supply chain professionals in the UK and France, we develop the
interdependencies between several sustainability metrics and determine the most critical metrics by
calculating their relative weights. Results show that the selected socio-economic metrics carry the most
relatively important role in supplier selection. Based on the findings of the study, we discuss implications for
theory and practice. The proposed evaluation system can provide details on observing sustainable supply chain
performance. It can also help to get a clearer insight into sustainability with a well-established quantitative
decision-making process so that business strategies can be developed with more concerns on supply chain
sustainability.
1. Introduction
Over the past decade, a large number of companies have adopted (or claim to have adopted) sustainable
management strategies (Hou et al. 2019). A growing body of literature has been established that developed
useful sustainability metrics and sustainable performance management frameworks (Hassini et al., 2012,
Morioka et al., 2016; Baxter et al. 2018, Osiro et al. 2018). The majority of studies consider sustainable
performance management using environmental, social, as well as economic/financial measures (see, for
example, Ahi and Searcy, 2015, Kuo et al. 2015, Dubey et al. 2017, dos Santos et al., 2019, Pislaru et al.
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2019). Amongst the developed methods for measurement of sustainability in corporations, sectors and
even nations, notable contributions include the Global Reporting Initiative (2015), the world business
council for sustainable development (2015), the development of standards (OECD 2004) and the Dow
Sustainability has been integrated into the corporate strategy of many organisations. Yet, one of the main
challenges is to develop models to guide decisions towards achieving the sustainability goals as they were
originally defined by the Brundtland Commission report,that emphasizes the interrelationships among
society, the environment, and economic development. In this direction, as organisations are increasingly
dependent upon the performance of their suppliers, it is imperative for companies to monitor and evaluate
not only the sustainable performance of their operations but also to extend this evaluation to their suppliers
and other stakeholders. Therefore, problems such as the selection of sustainable suppliers (defined as
suppliers with good sustainability performance) (Haeri and Rezaei, 2019), or the investment of a venture
capital fund on a business based on its perceived sustainable performance, are of paramount importance
for organisations in their pursuit of sustainable performance (Bai and Sarkis, 2010, Rashidi and Cullinane,
2019).
The selection of sustainable suppliers constitutes one of the most important supply chain decisions
towards a company’s sustainable performance (Chen et al., 2006, Chai et al. 2013), as the suppliers’
performance is directly correlated with vendors’ performance. For example, the Rana Plaza disaster in
Bangladesh in 2013, which involved perilous working conditions at a garment supplier that lead to the
death of more than 1100 people, tarnished the reputation of a large number of companies in the fashion
industry Ehrgott et al. (2011). It turned out that the due diligence and supplier selection processes for the
majority of vendors from that supplier were inadequate. As a result, the apparel companies were obliged to
sign a legislation to be held accountable for monitoring their Bangladeshi suppliers (Jacobs and Singhal,
2017).
There is a plethora of studies that deal with the supplier selection problem. A broad spectrum of different
methods and techniques have been applied. They include multi-attribute decision analysis methods such as
data envelopment analysis, total cost of ownership (Bhutta and Huq, 2002) weighted linear model
approaches and weighted sum models, linear and goal programming models, case-based reasoning,
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clustering methods, human judgment models, or statistical analysis (de Boer et al., 2001; Ho et al., 2010).
However, companies that actively incorporate sustainability into their strategy may need to add to their
selection criteria, metrics that show suppliers’ sustainability performance (Govindan et al., 2015).
The existing models for measuring sustainability performance are limited in that they focus on evaluating
the environmental and social performance separately and do not consider the inter-relationships between
different sustainability performance metrics (Singh et al., 2009, Bai and Sarkis 2010, Hassini et al, 2012)
and more importantly the relative prioritization of these metrics (Luthra et al., 2017). For example, in the
case where a global supplier has a low carbon footprint, but at the same its performance in terms of the
working conditions for its employees or the tax contributions to the local economy is poor, it is essential to
consider the vendor’s priorities in each of these dimensions and then determine a score for the overall
sustainable performance of the supplier (Price and Sun, 2017). Similarly, a precise method for evaluating
the sustainability performance based on prioritization of sustainability metrics is useful in the case where a
supplier may have the process of ensuring financial transparency and providing value to local
communities, but at the same time having an opaque relationship with regional governments which may
undermine competition. Which of the sustainability indicators are more important for vendors, so that they
can identify the best supplier based on their corporate strategy and vision for sustainability? In light of
(1) To identify and select appropriate evaluation criteria for sustainable supplier selection, and
(2) To develop a sustainability performance evaluation framework for sustainable supplier selection
benefit from a method which: (i) guides them in selecting the most appropriate performance indicators by
identifying which attributes of suppliers’ performance they need (or not need) to utilize, and (ii) assesses
the perceived importance of each performance indicator so that the strategic objectives of the firm can be
The paper proceeds as follows. In the 2nd section, we review pertinent literature on sustainable supplier
evaluation and selection with a particular focus on the use of MCDM methods. We also discuss the ANP
method and justify its usefulness in the sustainable supplier evaluation and problem. In the 3rd section, we
present our proposed method for the development of a sustainability multi-criteria framework for supplier
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selection. Through a comprehensive literature review on the use of sustainability metrics, we provide the
foundations for the selection of appropriate sustainability-related indicators. We also present the data
collection process for the empirical research to operationalise and validate our proposed approach. In the
4th section, we present the findings of the study, and in the final 5th section we conclude our paper with a
discussion of the main contributions of the study, its limitations and an agenda for future research.
2. Literature Review
Sustainable supply chain management can be defined as “the management of material, information and
capital flows as well as cooperation among companies along the supply chain while taking goals from all
three dimensions of sustainable development, i.e., economic, environmental and social, into account which
are derived from customer and stakeholder requirements” (Seuring and Müller, 2008). It involves
managerial decisions across several areas towards achieving sustainability, such as changing the
organisational culture, improving transparency and effective supply chain risk management (Carter and
An indispensable part of sustainable supply chain management is the selection of sustainable suppliers and
the evaluation of their performance (Luthra et al., 2017). There is a growing literature on the selection of
sustainable suppliers that incorporate factors related to the triple bottom line effect of sustainability
(Govindan et al., 2013; Govindan et al., 2015). Although economic and environmental performance have
long existed as parameters in the sustainable supplier selection process, the systematic consideration of
social and ethical outlook of companies has been developed recently, including issues such as child labor,
(MCDM) process. The MCDM discipline is very useful for disentangling the decision-making processes
of complex issues but also enables decision-makers to take into account and balance the trade-offs
amongst a wide range of criteria that can affect a decision (Saaty, 1996; Chai et al., 2013). This is
particularly evident in the selection of sustainable suppliers where the tradeoffs between economic and
Several MCDM evaluation methods have been applied, with Analytic Hierarchy Process, Analytic
Network Process and fuzzy-based approaches dominating the literature (Zimmer et al., 2016). Among the
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first researchers that incorporated sustainability into the supplier selection problem are Lu et al.
(2007) who explored environmental principles applicable to green supplier evaluation by using a multi-
objective decision analysis, Bai and Sarkis (2010) who used a grey system and rough set theory to develop
a sustainability framework for their supplier selection process and Buyukozkan and Çifçi (2011) who
used a fuzzy multi-criteria decision framework for sustainable supplier selection with incomplete
information. In Table 1 we provide a short list of well-cited studies over the past 10 years related to
sustainable supplier selection that use MDCM methods to illustrate the growing interest in the topic.
As sustainability is becoming a central strategic objective for many companies, the proposed MCDM
models are becoming more elaborate and focused on specific sustainability and operational related issues.
For example, the ANP/AHP methods have been combined with rough set and fuzzy set theories or with
several MCDM methods. Chen et al. (2019) use a rough-fuzzy DEMATEL-ANP method for evaluating
sustainable requirements. Notable recent studies in this domain are also the work the work of Parkouhi et
al. (2019) who use Grey DEMATEL technique to examine the importance of the criteria used for supplier
selection, and the work Bai et al. (2019) who use a group decision support approach to select suppliers
Table 1:
Summary of literature on the use of MDCM for sustainable supplier evaluation and selection
Authors Method Topic / relevance to this study
A green supplier selection model that considers the vagueness
Lee et al. (2009) Fuzzy extended AHP
of experts’ opinions in evaluating criteria.
Fuzzy entropy and fuzzy A sustainability performance model that utilizes an alert
Erol et al. (2011)
multi-attribute utility management system.
Amindoust et al. A mathematical sustainable supplier ranking model that
Fuzzy Inference System
(2012) considers the subjectivity of decision-makers’ perceptions
A sustainability performance measurement tool that uses
Govindan et al.
Fuzzy TOPSIS triangular fuzzy numbers to express linguistic values of experts'
(2013)
subjective preferences.
A model that rates green suppliers and allocates optimum order
Kannan et al. (2013) Fuzzy AHP / MOLP
quantities based on various constraints.
Fuzzy AHP / multi-objective A mathematical model that allocates the optimal quantities of
Azadina et al. (2015)
mathematical programming orders to suppliers considering lot-sizing problems.
Govindan et al. A systematic literature review to identify the most prevalent
Literature review
(2015) techniques and topics for green supplier evaluation.
ANP / Grey Relational A green supplier selection model that enables decision-makers
Hashemi et al. (2015)
Analysis to use linguistic evaluation.
Bayesian framework / Monte A model to rank and select suppliers using specific selection
Sarkis et al. (2015)
Carlo Markov chain simulation objectives, appropriate for small or missing data sets.
A framework for evaluating sustainable supplier selection using
Luthra. et al. (2017) AHP / VIKOR
22 evaluation criteria.
Haeri & Rezaei “Best-worst” / fuzzy grey
A weight assignment model for green supplier selection.
(2019) cognitive maps
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A method for supplier selection that takes into account the
Kellner & Utz (2019) Markowitz portfolio theory trade-offs between the supplier sustainability, the purchasing
costs, and the overall supply risk.
A method to weigh sustainable supply chain management
Li et al. (2019) Rough cloud TOPSIS
practices under conditions of decision method uncertainty.
to identify the relative importance and prioritization of specific sustainability metrics, which can assist the
decision of sustainable suppliers. The ANP is a generalization of the AHP method and is useful in solving
complex decision-making problems (Saaty and Vargas, 2004). Our choice is primarily grounded in the
fact that the ANP method can deal with complex multi-criteria issues and can generate evidence of inter-
relationships and dependencies among several performance metrics and therefore, determine a more
The ANP method has been combined with fuzzy or rough sets models and/or with other MCDM methods
such as TOPSIS. However, the main limitation of TOPSIS is that it assumes that all the criteria are
independent (Aguaron-Joven et al., 2015), which is not always the case in sustainability. Saaty and Tran
(2007) posit that good judgement produces valid answers in AHP, and fuzzy AHP simply produces
perturbation without producing any better outcomes. If the pairwise comparison is consistent, then fuzzy
AHP would yield similar priority vectors as the classical AHP (Csutora and Buckley, 2011). Similarly,
fuzzy set theory and its application in combination with MCDM methods is appropriate when dealing with
the uncertainty of measurement of qualitative evaluation metrics (Ferrero and Salicone, 2004; Lun and
The majority of existing studies that deal with the sustainable supplier selection problem utilise metrics
that cover the triple bottom line of sustainability. However, a critical limitation is that they use evaluation
criteria that are either generic, difficult to quantify and entail a certain level of ambiguity. For example,
despite the usefulness of such criteria such as the presence of “environmental management systems”
(Govindan et al., 2015), “environmental costs” (Luthra et al., 2019), or “fight for fair-trading” (Li et al.,
2019), their evaluation is not easy and requires subjective measures. In our study, we select metrics that
can be obtained accurately and are easily quantifiable, as most of them are in the form of ratios. Therefore,
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the use of a method that combines the ANP method with fuzzy or rough set theories would not add
Saaty and Vargas (2006) outline four steps for the utilization of the ANP method.
Step 1 - Define the problem and construct the network model in a logical way including appropriate and
parsimonious criteria: Unlike the AHP method where the problem is structured as a hierarchy, in ANP,
the problem is structured in the form of a network, that consists of decision clusters and elements which
are connected through network links. The links represent the inter-dependencies amongst the clusters and
the elements (Saaty, 2004). The network is built by considering all potential inter-dependencies amongst
the elements of the system. The inter-dependencies among elements can be in the form of outer
dependencies (when an element or elements in a cluster have a dependency with an element or elements in
other clusters), or inner dependencies (when an element or elements in the same cluster have an influence
on each other) (Saaty, 2004). The objective of the decision (in our case the selection of sustainable
suppliers) is defined as the goal of the hierarchy of the selected criteria (the sustainability metrics).
Step 2 - Conduct pairwise comparisons of the clusters and elements and obtain priority vectors: For a
given set of sustainability metrics, the ANP method conducts pairwise comparisons for each combination
of pairs of these metrics and attempts to identify how much more does a metric (of a single pair of metrics)
influence the decision for selecting a supplier than the other metric of the pair, to finally rank the
alternatives in the selection of the supplier (Saaty and Vargas, 2006). During this step, the potential
decision-makers are asked to evaluate the relative importance clusters and elements. For every pairwise
comparison matrix, the consistency index and ratio should be calculated to check for the consistency of the
matrix. The concept of consistency is that if metric a is more important than is metric b, and metric b is
more important than is metric c, then metric a must be more important than metric c. The consistency ratio
Consistenc y Index
(C.R.) can be calculated by the formula Consistenc y Ratio =
Random Consistenc y Index
λ −n
and the consistency index (C.I) as follows C.I. = n − 1 , with n representing the number of criteria. The
max
random consistency index (R.I) as proposed by Saaty and Vargas (2007). For n=12 elements the RI=1.48.
The pairwise comparisons are conducted using the following ranking scale (Saaty, 1996).
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Metric 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Metric
ai aj (1)
Where 1= equally important; 3 = moderately more important; 5= strongly more important; 7= very strongly more important; 9=
extremely more important; 2-4-6-8 = mean intermediate values (Saaty, 1996).
Step 3 – Form the supermatrix: The ANP problem is represented by a supermatrix, which is a partitioned
matrix in which each block matrix represents a relationship between two clusters (Peykarjou & Safavi,
2015). The structure of the supermatrix at the element level is shown below. If denotes the Nth cluster
and denotes the nth element in the Nth cluster, is a block matrix that denotes the priority vectors,
which represent the relative importance of the elements in the ith cluster with regard to the jth cluster
(Bottero & Mondini, 2008), i.e. the inter-dependencies between the elements (metrics). All relations are
assessed through pairwise comparisons and the priority vectors are used to construct the supermatrix. If
there is no relationship between clusters and within elements in the same cluster, will be zero. This
analytical process yields an unweighted supermatrix of the following form (Saaty, 2008).
C1 C2 CN
e e .. e e e .. e e e m2 .. e
11 12 1n1 21 22 2n2 m1 mnm
e 11
C1 e 12 W 11 W 12 W 1m
.
e 1n1
. e 21
W 21 W 22 W 2m
W= e 22 : : :
C2 .
e 2n2 (2)
.
e m1
e m2
Cm .
e mnm W m1 W m2 W mm
The supermatrix needs to be stochastic so that we can derive meaningful limiting priorities. Hence, there is
a need to form a weighted supermatrix. In our approach, we do this by using the priority vector from the
cluster matrix obtained in the previous step, weighted by each block matrix that falls into the column
under the given cluster (Peykarjou & Safavi, 2015). For instance, the first entry of the priority vector
derived from the cluster matrix is multiplied by all elements in the first block matrix of the unweighted
supermatrix, and so on. Based on the priority vectors obtained from the pairwise comparison matrices, the
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Step 4 - Identify the weighting attributes of the elements towards the goal and select the best alternatives:
The final step of the ANP is to obtain a priority ranking for each element in the network structure. In the
weighted supermatrix, there is only the direct influence of an element on any other element. However, an
element that directly influences a second element can indirectly influence a third element that is directly
influenced by a second element. Therefore, the weighted supermatrix obtained from the previous step is
transformed into a limiting supermatrix by raising itself to a limiting power to converge and to obtain a
long-term, stable set of weights, which is the global priority vector for each element (Abastante et al.,
2011). The reason for this calculation is to capture the transmission of all influence paths within the
3. Research Method
Following the steps for the application of the ANP method (Saaty and Vargas, 2006), our proposed
Identify dependencies between Conduct a survey amongst Calculate the weights of the
Selection of Sustainability
the selected metrics and construct professionals for pairwise criteria and rank them using a
performance metrics
the network model comparisons of the criteria decision supermatrix
Selection of sustainability metrics: The selection of the sustainability-related metrics was done through a
thorough review of the literature. To triangulate our choice of the selected metrics, we also consulted a
panel of 5 senior academic experts what work in the field of sustainable supply chain management through
structured interviews. During the interviews, the experts were asked to provide their opinion on whether
selected metrics from the literature were relevant or not and to provide alternatives and conditions
whereby metrics should be selected. Based on the literature review and the experts’ consensus on the
A large number of sustainability metrics have been proposed in studies from bodies of literature spanning
economics, management, agriculture, and politics. Typical metrics cover environment factors (e.g., energy
consumption, greenhouse gas emissions, waste generation), social issues, (e.g., total number of employees,
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gender equality) and economic factors (e.g., economic value added, net income and revenue) (Szekely and
Knirsch, 2005). For the design of our proposed sustainability performance framework, initially, we
selected sustainability metrics based on the review of existing literature related to sustainability
performance indicators. Based on the literature review and the experts’ interview, we formulated and
Table 2:
Qualifying conditions for the selection sustainability performance indicators
Criteria Definition
Relevance to Promote sustainability (Guy & Kibert, 1998); Critically activity-related (Keeble et al., 2003);
corporate and Relevant to key internal and external concerns (Keeble et al., 2003); Complement existing
public policy regulatory programs (Tanzil & Beloff, 2006); Have social appeal, measure what is important to
stakeholders (Reed et al., 2006); Involve several community stakeholders, Useful for decision-
making (Tanzil & Beloff, 2006); Relevant to the local system (Nordheim & Barrasso, 2007
Comparability Capable of comparison with other values reported elsewhere (Holland, 1997); Potentially
benchmarkable (Keeble et al., 2003); Have a target level and baseline with regard to which to
measure (Reed et al., 2006).
Measurability Measureable and verifiable (Keeble et al., 2003); Be easily measured, make use of available data
(Reed et al., 2006); Quantitatively measurable and/or qualitatively descriptive, Data available or
possible to generate (Nordheim & Barrasso, 2007);.
Cost Effective Cost-effective in term of data collection (Tanzil & Beloff, 2006); Be cost effective to measure
(Reed et al., 2006).
We then applied the following additional set of conditions to filter the abundance of metrics that are
available in the literature. Based on the definitions of Seuring and Muller (2008) and of Carter and Rogers
(2008), we included metrics that cover all the three commonly used dimensions of sustainability, that are
simple to develop, relevant to business and useful to decision-makers, cost-effective to collect and
measure, easy to understand to a wide variety of people, assure the results can be reproducible, consistent
and comparable, and prevent the calculation of confidential or private information (Schwarz et al., 2002).
Finally, we selected metrics based on their ability to be constructed as a ratio that meets the needs of
industries and their numerators and denominators can be related to one product unit. This final qualifying
condition was deemed critical for the practical application of our proposed method, as the use of
quantitative metrics is easier to measure and obtain more objectively. Based on these conditions, we
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Table 3:
Selected Sustainability metrics based on those commonly used in the literature
Metrics Authors
En1 - Greenhouse gas emissions Veleva & Ellenbecker (2001), Székely & Knirsch (2005), Singh
(tons/unit of production) et al. (2007), Santos et al. (2013), Erol et al. (2009)
En2 - Water consumption Veleva & Ellenbecker (2001), Singh et al. (2007), Erol et al.
(m3/unit of production) (2009), Hubbard (2009), Weber et al. (2010), Santos et al. (2013)
Environmental
En3 - Energy consumption Veleva & Ellenbecker (2001), Székely & Knirsch (2005), Singh
(kWh/unit of production) et al. (2007), Hubbard (2009), Santos et al. (2013)
En4 - Amount of waste generated Veleva & Ellenbecker (2001), Erol et al. (2009), Weber et al.
(tons/unit of production) (2010)
So1 – (Social) Investment in Epstein & Roy (2001), Linton et al. (2007), Székely & Knirsch
community (2005), Searcy et al. (2007), Erol et al. (2009), Hubbard (2009),
(% proportion of revenues) Bai and Sarkis (2010)
So2 - Customer/Community Veleva & Ellenbecker (2001), Linton et al. (2007), Erol et al.
Social complaints (rate) (2009)
So3 - Health and safety incident Veleva & Ellenbecker (2001), Singh et al. (2007), Santos et al.
rate (rate e.g. number/hour) (2013)
So4 - Average hour of employee
Veleva & Ellenbecker (2001), Székely & Knirsch (2005)
training (hours/ employee)
Ec1 - Productivity Székely & Knirsch (2005), Linton et al. (2007), Singh et al.
(turnover / employee) (2007)
Ec2 - Return on equity
Hubbard (2009), Weber et al. (2010), Santos et al. (2013)
(percentage)
Economic Ec3 - Economic value added
Epstein & Roy (2001), Picazo-Tadeo et al. (2011)
(in currency used, e.g. USD)
Ec4 - Investment in sustainable
processes/products (proportion Searcy, et al. (2007), Singh et al. (2007), Erol et al. (2009)
from annual revenues)
Their definition and major proponents are provided in the Appendix of the paper. It should be noticed that
the objective of our study is not to come up with an exhaustive list of sustainability metrics, but to point
out the breadth of different sustainability issues that need to be considered for the development of
sustainable supplier performance framework. Further classifications and detailed metrics could be
proposed for specific industries. Depending upon the strategy of organizations, the perspectives of their
Identify dependencies and design the network structure: To create the network structure of our MCDM
problem, first we classified the criteria into clusters (sustainability pillars) that comprise various elements
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(sustainability metrics) (Bottero & Mondini, 2008). Subsequently, we consulted the panel of experts that
helped us in the selection of the sustainability metrics for a second round of interviews to define the inter-
dependencies between the clusters and between each element of the network. The experts were asked to
provide their opinion on potential dependencies between the selected criteria by inserting in a relationship
matrix the number 1 if they considered there was a dependency between a pair of metrics, and 0 if they
considered there was not any relationship. We determined that a relationship between two criteria is
present if the majority (i.e., more than 3 experts) agreed on it. Based on our analysis and the experts’
opinions, we identified the following key relationships between elements within the network (Figure 1).
Goal
Selection of sustainable supplier /
prioritization of sustainability metrics
H A B C
I
F E
Environmental
performance (En)
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Outer Dependency
Inner Dependency
Based on the proposed inner and outer dependencies among all the elements, the network model at the
cluster level is shown in Figure 2. The nodes of the network show the components of the system and the
arcs represent the interactions between them. In Figure 3 we demonstrate the detailed network structure at
the element level, showing the inter-relations and dependencies within the network. In our analysis, we
considered all the interactions amongst the elements. It can be seen that all the metrics are linked.
Goal
Selection of sustainable supplier /
prioritization of sustainability metrics
Outer Dependency
Greenhouse gas Energy Water Consumption Amount of waste
Inner Dependency emissions (En1) Consumption (En2) (En3) generated (En4)
Environmental Performance
Figure 3: The network model at element level and the interaction among clusters and elements
Pairwise comparisons: Based on the structure of the network, we built the structure of the unweighted
supermatrix. The unweighted supermatrix helped us identify the number of pairwise comparisons at the
cluster as well as the element levels that are needed in our model. Table 4 shows the structure of the
unweighted supermatrix at the cluster level. It consists of the sub-matrices (A, B, C, D, E, F) that were
obtained from the priorities vectors derived from the pairwise comparisons, as defined by our network model.
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Empirical study: We conducted a broad survey to collect data for the pairwise comparisons of the metrics.
The survey involved manufacturing companies in the UK and France with more than 100 employees in the
following sectors: aerospace, automotive, chemicals, electronics, steel and shipbuilding. We developed an
online questionnaire of the selected metrics using the software qualtrics©. We used stratified sampling
from the national databases of purchasing professionals: The Chartered Institute of Procurement and
Supply (CIPS) in the UK, and the Conseil National des Achats (CNA) in France. We filtered the original
• Professionals with career experience of at least 15 years as supply chain and procurement managers.
• Using their profiles, evidence of experience in supplier selection and supplier development processes.
• There was no filter in terms of race, sex, religion, or specific age groups.
The respondents were given the list of the selected sustainability metrics (along with their definition) and a
question that asked them to rate the relative importance of each metric in their decision to evaluate the
performance of a potential supplier was posed. We sent the questionnaire to 550 senior supply chain
The data analysis involved three main steps: pairwise comparison of the selected metrics, the formulation
of a supermatrix and calculation of final priorities (Bottero & Mondini, 2008). Pairwise comparisons are
needed when at least one element in the source cluster is connected to at least two elements in the target
cluster (Saaty, 2008). We conducted pairwise comparisons at two levels: at the cluster and element levels.
We included the value obtained from each pairwise comparison in a pairwise comparison matrix that we
then used to calculate a priority vector (weight of the metric). Subsequently, we incorporated the priority
vectors in each pairwise comparison matrix into a supermatrix. We constructed the cluster matrices by
obtaining the priority vectors that were derived from the pairwise comparison matrices at cluster levels.
The analysis of the data collected was done using the Super Decisions® software package (“Introduction
to the ANP”, n.d.), using the simple geometric mean to aggregate the data to get a consensus opinion
(Adams, 2001; Shao et al., 2016). Based on the ANP network structure, the three required pairwise
comparison matrices at the cluster level and the five required pairwise comparison matrices at the element
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level were developed using data collected from the survey. The pairwise comparison matrices with priority
vectors and the respective consistency ratios are shown in Table 5. We conducted consistency tests that
yielded consistency ratios of less than 0.10; this confirms that our data are consistent. The last columns of
each pairwise comparison matrix are the priority vectors for each element in the pairwise comparison
matrices. The priority vectors derived from these pairwise comparison matrices form the elements that
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With respect to Ec4 Ec1 Ec2 Ec3 Priority vector
Ec1-Productivity or turnover per employee 1.0000 0.8844 0.7447 0.2886
Ec2-Return on equity 1.1307 1.0000 1.1005 0.3568
Ec3-Economic value added 1.3428 0.9087 1.0000 0.3545
Consistency Ratio = 0.0077
The priority vectors derived from the pairwise comparison matrices at the cluster level were used to form
the cluster matrix in Table 6. The cluster matrix was used to develop the weighted supermatrix. According
to Saaty (2008), pairwise comparisons must be conducted if at least one element in the cluster is connected
to at least two elements in the target cluster. It can be seen that some priority vectors in the cluster matrix
are given the value 1 because the influencing element is only connected to one element. For example, So1
is directly connected only to So2; therefore, its priority vector has a value of 1, while the priority vectors
for others are obtained from the pairwise comparison between elements with regard to the controlling
Table 6:
The cluster matrix for the ANP model
Goal Environmental Social Economic
Goal 0.0000 0.0000 0.0000 0.0000
Environmental 0.3863 0.0000 0.0000 0.3863
Social 0.2769 1.0000 0.4540 0.2769
Economic 0.3369 0.0000 0.5460 0.3369
The final step of the ANP method is to obtain a priority ranking for each element in the network structure.
In the weighted supermatrix, there is only the direct influence of one element (metric) on any other
element. However, if an element a directly influences element b, then it can also indirectly influence a
third element c that is directly influenced by element b. Therefore, we transformed the weighted
supermatrix obtained from the previous step into a limiting supermatrix by raising itself to a limiting
power in order to converge and to obtain a long-term, stable set of weights, which is the global priority
vector for each element (Abastante et al., 2011). The reason for this calculation is to capture the
transmission of all influence paths within the network (Peykarjou & Safavi, 2015).
In Table 7 we show the detailed limited supermatrix and the final priority ranking of the selected metrics.
We also provide a column showing the goal for the weighted and unweighted supermatrices. The
priority ranking of each metric for the objective of evaluating the most important metric for sustainability
- 16 -
performance is shown in the “Limiting Supermatrix Goal” column and the column “Priority vector
- 17 -
Table 7.
Unweighted, Weighted and Limiting Supermatrices
Unweighted Weighted Limiting En So Ec
Supermatrix Supermatrix Supermatrix Priority
Goal Goal Goal En1 En2 En3 En4 So1 So2 So3 So4 Ec1 Ec2 Ec3 Ec4 Vector
Rank
Goal Normalised
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 by cluster
En1 -
Greenhouse 0.2371 0.0916 0.0503 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0577 0.2371 9
gas emissions
En2 - Energy
Consumption
0.2822 0.1090 0.0599 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0687 0.2822 4
En
En3 - Water
consumption
0.2256 0.0871 0.0479 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0549 0.2256 10
En4 - Amount
of waste 0.2551 0.0986 0.0542 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0621 0.2551 5
generated
So1 - Social
Investment in 0.1693 0.0469 0.1822 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.2610 0.5000 0.5000 0.5000 0.2123 0.3077 2
community
So2 –
Customer /
Community
0.2231 0.0618 0.3175 1.0000 0.0000 0.0000 1.0000 1.0000 0.0000 0.0000 0.2610 0.5000 0.5000 0.5000 0.3321 0.5361 1
Complaints
So So3 - Health
0.1300
and safety 0.4694 0.0735 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.2170 0.0000 0.0000 0.0000 0.0000 0.1241 3
incident rate
So4 - Average
number of
hours of 0.1382 0.0383 0.0191 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0322 12
employee
training
Ec1 -
Productivity
or turnover
0.2263 0.0762 0.0534 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.2610 0.0000 0.0000 0.0000 0.0613 0.2730 6
per employee
Ec2 - Return
of equity
0.2770 0.0933 0.0526 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0757 0.2692 8
Ec Ec3 -
Economic 0.2784 0.0938 0.0528 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0753 0.2702 7
value added
Ec4 -
Investment in 0.0736
sust. process /
0.2184 0.0367 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.1877 11
products
Final priority ranking of each metric 9 4 10 5 2 1 3 12 6 8 7 11
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Figure 4 shows the inner and outer dependencies between the metrics in the ANP model. It can be seen
that most of the influence paths within the network, directly or indirectly point to customer/community
complaints (So2) and social investment in community (So1). In addition, the metric customer/community
5. Discussion of results
The empirical study was conducted in several manufacturing sectors and the results suggest that social
sustainability metrics are perceived to have a relatively higher priority in the selection of sustainable
suppliers. Similarly, for suppliers, efficiency, economic value-added and greenhouse gas emissions are
also critical areas. We should emphasize that we would expect that the results of the prioritization will be
dependent on the opinions of the professionals that participate the decision-making process for the
selection of sustainable supplier in terms of their pairwise comparisons. Similarly, we would expect the
ranking to change, if a different set of criteria is selected. However, the main focus of the study is not to
come up with an authoritative ranking of sustainability metrics but to generate a novel approach of
selecting sustainable suppliers. Our proposed approach has certain theoretical, managerial, and policy-
From a theoretical point of view, our study moves beyond the normative prescription that a company
would typically seek excellence on behalf of its suppliers across all the three dimensions of sustainability.
Our results show that the cost and resource constraints that many companies face, forces decision-makers
to consider dimensions with short term effects, such as assessing and dealing with potential risks of poor
- 19 -
social responsibility performance of suppliers as well as short term economic dimensions such as turnover
From a methodological point of view, we consider that the dependencies among the various sustainability
metrics are pivotal in determining the choice of sustainable suppliers and propose the utilization of the
ANP, a well-established decision-making method of MCDM to take this into account. We posit that the
evaluation of sustainable performance should take into account the dependencies amongst several
sustainability performance indicators. The literature is rife of studies of sustainable supplier selection and
sustainable performance evaluation. However, the majority of the studies either evaluate the criteria
separately or use either a limiting, vague and in some cases arbitrary sustainability metrics without a
comprehensive objective. Our study attempts to close this gap in the literature by proposing an analytical
evaluation method for weighting sustainability metrics that are widely used across several industries and
are easily obtainable and quantified. As a result of the proposed method, the weights and prioritization for
Our study also has several managerial implications. Many companies and policy-makers often perceive
sustainability and sustainable supplier selection in defined silos. The environment in one box, child labour,
or racial injustice in another, economic growth or health are in different compartments. And there are
many stakeholders within and outside companies, each competing with one another for resources, leverage
in decision-making and priorities. This compartmentalisation generates a culture of inaction for supply
chain sustainability and prevents decision-makers from exploring and identifying dependencies between
sustainability issues. For instance, very often, companies that are active in reducing greenhouse gas
emissions, are lagging in social investment, even though the effects of climate change will primarily affect
communities with low income. As a result, their selection of suppliers neglects these issues.
To overcome this division and the lack of a holistic approach to sustainable suppliers’ evaluation, our
proposed method can assist decision-makers in appreciating which aspect or sustainability they should
focus on in the selection of appropriate suppliers; as it provides clear insight of suppliers’ sustainability
performance with quantitative analysis. Its main contribution is that it is based on authoritative experts’
support using a broad spectrum of standardized, easily quantifiable and measurable sustainability-related
- 20 -
From an internal auditing point of view, a company can also use the method to compare at which metrics
it performs better than others. By calculating the perceived importance of each sustainability-related
metric derived from the proposed model, the company’s sustainability performance can be monitored and
managers can identify the critical operations or processes related to the performance metrics that need to
be improved to achieve the desired level of performance. As the notion of sustainable supply chain
management is concerned with ensuring that every stage and activity in the supply chain contributes to a
positive impact on society, the environment and the economy, companies can align their strategies and
operations, such as evaluating the sustainable performance of suppliers, based on the priority of their
sustainability performance metrics. As such, the proposed method can be used to aggregate multiple
The results of the study are important for policy-makers for sustainable development that can design
legislations and industrial policies based on issues that are important to companies. The comprehensive list
of metrics can help companies to improve competitiveness and supply chains to improve their sustainable
performance.
6. Conclusion
The growing trend for global sourcing and offshoring has increased the complexity of the selection of the
most appropriate partners. Parkouhi et al. (2019) argue that the selection of suppliers in turbulent
environments is one of the most challenging and complex tasks. Short-term, cost-focused sourcing and
development of arm’s length relationships are no longer considered an effective option. There is a growing
pressure for vendors in the developed world to focus on social as well as environmental and financial
factors in their selection of suppliers and for companies to opt for holistic approaches to suppliers’
evaluation that incorporate several dimensions (operational, financial, organizational) (Kraft et al., 2018).
Our study contributes to the existing literature by introducing a novel decision-making evaluation
framework for selecting sustainable suppliers using the ANP method. Through a comprehensive literature
review and interviews with sustainability experts, we incorporated salient environmental, social and
economic performance metrics in a framework that are quantifiable, easy to obtain and can be used across
a variety of different industries. Contrary to fuzzy methods that use criteria that are difficult to assess, our
- 21 -
model presents a clear method of well-established quantitative decision-making process, which can be
used to shape an evaluation platform for the sustainability performance of potential suppliers. It can also
be used as a diagnostic tool for a firm to evaluate and align its sustainability performance with its supply
The application of this method is bound to some implementation challenges. Firstly, it is difficult to
determine with mathematical accuracy the total appropriate number of metrics, as too many measures will
result in heavy work, but too few may not fit well. Also, data against these metrics may not be available,
in which case projections need to be made. Our selected metrics may cover different areas, which requires
a lot of background knowledge to carry out the method accurately. The time to collect data and analyses
information may be too long, and thereby it may be too late to realize what should be changed in measures
or implementation.
As with any proposed model, our model also has some limitations. The implementation of ANP requires
pairwise group comparisons. As the ideal minimum and maximum acceptable values for each metric are
challenging to measure or obtain, the utilization of the fuzzy numbers is limited in this model. The
selected method also represents a subjective bias of a researcher/decision maker. There is always going to
be a bounded rationality bias in this respect. Finally, for some metrics, there is an inherent difficulty in
deciding where and how to measure and apply them. Due to value-laden statements, place and time
dependency, the results for societal metrics cannot be assured to be as objective. As some metrics are
tracked by humans, calculations may not be always correct and provided on time (Lee and Amaril, 2002).
These challenges and limitations can be potentially overcome, with the following suggestions for future
research. As the data for the empirical study were collected from a variety of manufacturing companies,
further research could be conducted by studying specific companies in order to incorporate the influence
of certain selected suppliers (model alternatives). Finally, further research could use our proposed method
as the starting point of developing a sustainable supply chain performance measurement system by
integrating the ANP with an aggregation method such as a TOPSIS, the multi-attribute utility (MAUT), or
- 22 -
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APPENDIX - The Definition of Selected Sustainability-related Metrics
Health and safety Rate of reportable lost workday injuries and Veleva &
incident rate illness case per total number of hour worked Ellenbecker
by all employees. (2001)
Economic value added Net operating profit after taxes less the cost Stern Stewart
of all capital employed. & Co. (2000)
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Highlights