Structural model for analysis of key performance indicators for sustainable manufacturer–supplier collaboration: A grey‐decision‐making trial and evaluation laboratory‐based approach

Kannan Govindan, Aditi, Jyoti Dhingra Darbari, Arshia Kaul and Jha Pc

Business Strategy and the Environment, 2021, vol. 30, issue 4, 1702-1722

Abstract: With growing competition in the market and dire need for sustainability, it has become imperative for companies to build long‐term relationship with their supply chain partners through sustainable collaboration. Among these, the supplier–manufacturer relationship is crucial for improved organizational, business and sustainable performance. Sustainable collaboration with suppliers involves crucial decision‐making processes such as continuous supplier monitoring and supplier development. Hence, a critical challenge that a company faces is to identify the key performance indicators (KPIs) for assessing the performance of a supplier for sustainable collaboration. In this regard, this study focuses on identification of KPIs for an Indian home appliance company through exhaustive discussions involving multiple decision‐makers. Further, a grey‐based decision‐making trial and evaluation laboratory (DEMATEL) model is proposed in the study for analysing the importance levels among the fifteen KPIs based on multiple stakeholder perspectives. The results of the grey structural model indicate seven KPIs as influencing KPIs and eight KPIs as influenced KPIs. The KPI ‘Information disclosure’ has been identified as the most influential KPI for the evaluation of suppliers for sustainable collaboration. The implications drawn from the result analysis model can provide meaningful insights to managers for identifying strategies towards strengthening the supplier–manufacturer relationship and achieving organizational and market competence.

Date: 2021
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