Evaluating Green Supplier Development Programs with a Grey-Analytical Network Process-based Methodology

Yijie Dou, Qinghua Zhu, and Joseph Sarkis

European Journal of Operational Research, Forthcoming.

Under circumstances of increasing environmental pressures from markets and regulators, focal companies in supply chains have recognized the importance of greening their supply chain through green supplier development programs. Various studies have started to explore the interrelationships between green supply chain management and supplier performance. Much of this performance can be achieved only with suppliers’ involvement in green supplier development programs. But, the literature focusing on green supplier development programs and supplier involvement propensity is very limited. In addition, formal tools and models for focal companies to evaluate these interrelationships, especially considering propensity of suppliers’ involvement, are even rarer. To help address this gap in the literature, we introduce a grey analytical network process-based (grey ANP-based) model to identify green supplier development programs that will effectively improve suppliers’ performance. We further comprehensively evaluate green supplier development programs with explicit consideration of suppliers’ involvement propensity levels. A real world example is introduced to demonstrate the effectiveness of the model. We end with a discussion of managerial implications and present some directions for further research.

Keywords: Supply Chain Management; Supplier Development; Environmental; Analytical Network Process; Sustainability; Grey Systems Theory

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