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

• Published in: Asia Pacific journal of marketing and logistics 2020-01, Vol.32 (1), p.253-280
• Main Authors: Li, Fang, Deng, Lei, Li, Longxiao, Cheng, Zizhen, Yu, Han
• Format: Article
• Language: English
• Subjects: Data envelopment analysis; Decision making; Efficiency; Environmental conditions; Environmental performance; Suppliers; Supply chain management; Sustainability
• ISSN: 1355-5855; 1758-4248
• DOI: 10.1108/APJML-02-2019-0110

Purpose The 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/approach The 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. Findings The 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/implications The 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/value Evaluating 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.