Research Article
Research Article
Research Article
Research Article
Analysis of Success Factors to Implement Sustainable
Supply Chain Management Using Interpretive Structural
Modeling Technique: A Real Case Perspective
Received 11 May 2017; Revised 12 July 2017; Accepted 29 August 2017; Published 10 December 2017
Copyright © 2017 Mengke Yang et al. This is an open access article distributed under the Creative Commons Attribution License,
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Sustainability draws increased supply chain management (SCM) attention. This article analyzes critical success to the assessment,
evaluation, and attainment of sustainable supply chain management (SSCM), assessed through critical-success identification and
qualitative data analysis. Namely, a literature review selected of 188 articles, published between January 1994 and November 2016,
helps identify the most influential success factors. The qualitative data analysis pertains to fifteen such successes, identified in the
literature review and through our collaboration with other academic researchers and industrial specialists. Notably, the study’s
qualitative data analysis, interpretive structural modeling (ISM), unconceals the mutual impact among the most prominent SSCM
success factors. The economic benefits and environmental awareness of suppliers are recognized as the most significant success
factors, which could allow business enterprises and other organizations to implement a SSCM framework, with intentionality and
the sustainability in their business. The article concludes with suggestions for future research directions.
2.3.2. Strategic Planning (S2). Domestic government legisla- 2.3.8. Scarcity of Natural Resources (S8). Industrial pro-
tions and environmental regulations are of the major drivers fessionals need training to adopt SSCM system in their
4 Mathematical Problems in Engineering
industries and need training to maintain and monitor growth conducts to be lower than related community costs [45].
[32]. The growth of gross domestic product has been raised. Due to high attention to the environmental protection and
Effective employees’ training offers several potential advan- sustainable development, such as pressures from NGOs
tages in real life. Most social benefits, derived from the and stakeholder groups, organizations are being pushed to
accumulation of human skills, such as good health, more effectively incorporate sustainability issues into their supply
urban employment, reduction of crime, and increase in social chain network managing program [46].
correlation, will affect the economic growth in the long term.
2.3.14. Measure and Monitor the Environmental Practice of
2.3.9. Firm’s Competitiveness (S9). Organizations implement- Suppliers (S14). Metrics misalignment is thought to be a
ing green innovation can enjoy the first mover advantage and, primary source of inefficiency and disruption in supply
at the same time, improve their corporate images, develop chain interactions [47]. It means sustainability practice or
new markets, and gain competitive advantages [33]. Supply- environmental protection is one of the goals that exist in
ing must pay high attention to supply chain sustainability organization. The good summary of the aims with a sus-
issues, while the environmental benefits may hold them tainability keeps focusing the organizations on track during
responsible for unsustainable supply chain behaviors. Mostly, adverse times and leads to fighting the inner battle among
unsustainability obstacles occur upstream at the different commercialization and esteemed values.
subsupplier stages [34].
2.3.15. Maintaining the Environmental Awareness of Suppliers
2.3.10. Information Quality and Sharing (S10). An efficient (S15). Industries are unable to maintain the environmental
interorganizations/intraorganization communication, shar- conscious suppliers and suppliers also are concerned to
ing of innovative ideas, and developing healthy organiza- maintain the environmental concepts in their industries [48].
tional culture in implementing of SSC activities can be The growing recognition of the contribution of local areas
achieved through information sharing among industries [35, to energy and environmental policies has led to important
36]. Sustainable technologies are cleaner and reconfigurable initiatives for the reallocation of planning actions [49].
and even recyclable, which do not harm the nature but need
high investment [37, 38]; also waste treatment is another 3. Research Gap
important area that needs attention in the sustainable devel-
opment strategy. Thus, we argue that enabling advanced Adopting sustainable concepts in traditional supply chain
technologies and information should be taken into consid- management is very difficult, and there are many obstacles to
eration as an enabler in the strategic framework formulation integrating environmental consciousness in traditional SCM.
of sustainable supply chain. Based on our systematic literature, it is found that in this field
many researchers worked on performance and enablers for
2.3.11. State Government Legalizations (S11). There is a lack of the adopting of SSCM in different branches [50–52] and that
number of laborers in the organization and/or the quality of only a handful of researchers address the analysis among the
the employees. Basically, a fundamental obstacle to improv- critical success for implementation of SSCM in organizations
ing environmental performance of the SME sector is a lack [14, 53]. One serious issue in industries is environmental
of state government legalizations [39]. But among the item contamination. The manufacturing industries have started
mentioned above, the task of developing human resources to adopt sustainable concepts in their SCM in order to
in both developed and developing industries is accepted as retain their customers. This study is helpful for industries to
a vital need in the societies [40]. analyze the success for SSCM and to find the key success;
industries will also be able to improve their sustainable
2.3.12. Fearlessness of Failure (S12). The fear of failure is performance by identifying the leading or dominant success
involved while adopting sustainable supply chain which for adopting sustainable supply chain management. It is
could lead to monetary losses for the firm or the fear of difficult for industries to eradicate all the success in the initial
failure of the product, hence leading to losing the competitive stage of adopting sustainable concepts in traditional SCM.
advantage [41]. Sustainable development approach reflects
on the role of information as a strategic resource in supply 4. Solution Methodology
chain [42]. Reference [43] further emphasized the need to
develop reverse logistics networks, to increase the utilization 4.1. Interpretive Structural Modeling. The ISM is a qualitative
of resources and for the reuse and recycling of the product. data analysis which was proposed by [54]. Firstly it was used
as a solving method to basically understand and identify the
2.3.13. Pressure from Non-Government Organizations (NGOs) interrelationships of the components in sophisticated systems
Lobby (S13). Legislation and regulation are the instruments or condition [55]. Also ISM is based on group decision-
very much necessary for the proper governance of business making, social sciences, discrete mathematics, graph theory,
enterprises including the environment in which they oper- and computer assistance [56]. The ISM methodology is
ate. Environmental laws and regulations are an important started by separately or group mental types in order to
framework, within which the companies must operate [44]. calculate binary matrices, to explain the individual/mutual
In the large scale, environmental pollution caused by factory relations of the elements. In some references this matrix is
production processes in the other side costs of production nominated as relation matrix too [38].
Mathematical Problems in Engineering 5
The relation matrix may be shaped by considering this Step 4. Reachability matrix is developed from the SSIM and
question “regarding this feature will 𝑒𝑖 effect 𝑒𝑗 ?” Following the matrix is checked for transitivity. The transitivity of the
the reply, if it is “no” then 𝜋𝑖𝑗 = 0; otherwise 𝜋𝑖𝑗 = 1. The contextual relation is a basic assumption made in ISM. It
relation matrix, in general form, is shown as follows: states that if a variable 𝐴 is related to 𝐵 and 𝐵 is related to
𝐶, then 𝐴 is necessarily related to 𝐶.
𝑒1 0 𝜋12 ⋅ ⋅ ⋅ 𝜋1𝑛
𝑒2 𝜋21 0 ⋅ ⋅ ⋅ 𝜋2𝑛 Step 5. The reachability matrix obtained in Step 4 is parti-
𝐷= . ( . tioned into different levels.
.. .. .. .. ) . (1)
. d .
Step 6. Based on the relationships given above in the reach-
𝑒𝑚 𝜋𝑚1 𝜋𝑚2 ⋅ ⋅ ⋅ 0 ability matrix, a directed graph is drawn and the transitive
links are removed.
Here “𝑒𝑖 ” is the same as “𝑖th” variable in the framework. “𝜋𝑖𝑗 ”
also reveals the connection among “𝑖th” and “𝑗th” variables. Step 7. The resultant digraph is converted into an ISM, by
𝐷 is the relation matrix. replacing variable nodes with statements.
𝑀 = 𝐷 + 𝐼, (2)
Step 8. The ISM model developed in Step 7 is reviewed to
∗ 𝐾 𝐾+1 check for conceptual inconsistency and necessary modifica-
𝑀 =𝑀 =𝑀 , 𝐾 ≥ 0. (3)
tions are made. The above steps and necessary modifications
In (2), “𝐼” is nominated as the unit matrix, and in (3) “𝐾” are made [18] which are indicated in Figure 3.
express the powers. Also in (3) 𝑀∗ presented the reachability
matrix. Keep in mind that this matrix runs under the 4.3. Interpretive Structural Modeling. The ISM technique is a
“Boolean operation” (e.g., 1 × 1 = 1 and 0 × 0 = 0; see as follows) well-known methodology for identifying and summarizing
relationships between specific elements. In the first step
1 0 to develop the theoretical framework, we use ISM to rec-
𝑀=( ),
1 1 ognize the mentioned fifteen successes of SSM based on
(4) our systematic literature review in the previous sections.
1 0 This methodology allows an interactive learning practice
𝑀2 = ( ). and helps to understand the complex relationships among
1 1
variables of systems. To find experts we identified practition-
Now, we are ready to calculate the reachability matrix and ers who have implemented sustainability initiatives within
priority matrix, respectively, as follows: their supply chains. They have suitable experience and are
working at tactical operation in different levels of supply
𝑅 (𝑡𝑖 ) = {𝑒𝑖 | 𝑚∗ 𝑗𝑖 = 1} , (5) chain. The experts were consulted to verify the drivers that
were stemmed from the literature review in the context of
𝐴 (𝑡𝑖 ) = {𝑒𝑖 | 𝑚∗ 𝑖𝑗 = 1} . (6) manufacturing. The wording of the variables was verified but
we did not drop or add new variables.
“𝑚𝑖𝑗 ” explains the value of the “𝑖th” and “𝑗th” in row and
column, respectively. 4.4. Sampling Design and Data Collection. In our study, 12
Now, based on (7), the interrelationships among the manufacturing firms were identified from various sectors
elements could be discovered and the arrangement of the including electrical power supply, UPSs and battery charger
relationship of elements could be explained by the graph consumer goods, and batteries. The targeted experts have
twenty plus years of experience and were working in the
𝑅 (𝑡𝑖 ) ∩ 𝐴 (𝑡𝑖 ) = 𝑅 (𝑡𝑖 ) . (7)
tactic level of supply chain operations. Ten academics from
reputable engineering and management institutes were also
4.2. The Main ISM Steps. The various steps involved in the consulted for the survey of the SSCM drivers. The use of
ISM methodology are described as follows. professional networking sites made our efforts much easier.
The questionnaire was emailed to a total of 24 experts out of
Step 1. Variables (criteria) considered for the system under
which 32 exploitable responses were considered for the study.
consideration are listed.
Thus, we achieved a response rate of 75%. The flow chart or
Step 2. From the variables identified in Step 1, a contextual our research is illustrated in Figure 4.
relationship is established among the variables in order to
identify which pairs of variables should be examined. 4.5. Structural Interpretive Matrix. As per ISM technique,
we used the survey to establish the contextual relationships
Step 3. A structural self-interaction matrix (SSIM) is devel- between the drivers identified earlier, and the structural self-
oped for variables, which indicates pairwise relationships interaction matrix (SSIM) emerged [14, 57]. The relationship
among variables of the system under consideration. among the variables in the survey is denoted by 𝑉, 𝐴, 𝑋,
6 Mathematical Problems in Engineering
No
Represent relationship statement
into model for the barriers to SSCM
adoption
and 𝑂. Using the symbols 𝑖 and 𝑗 to denote columns and rows, 𝑂: if 𝑖 and 𝑗 are not related each other.
the relationships between nodes are shown as follows:
In Table 1, structural self-interaction matrix is shown.
𝑉: if 𝑖 leads to 𝑗 but 𝑗 does not lead to 𝑖
𝐴: if 𝑖 does not lead to 𝑗 but 𝑗 leads to 𝑖 4.6. Structural Model. The SSIM (Table 1) is further con-
𝑋: if 𝑖 and 𝑗 lead to each other verted into initial and final reachability matrices (see Tables
Mathematical Problems in Engineering 7
2 and 3). The initial reachability matrix emerged when we 4.7. Structural Final Reachability Matrix. The transitivity
converted the SSIM by substituting 𝑉, 𝐴, 𝑋, and 𝑂 by 1 and principle can be explained with an illustrative example: if 𝑎
0; as per the following rules SSIM becomes binary format, for leads to 𝑏 and 𝑏 leads to 𝑐, the transitivity property implies that
example, 0 or 1; the instruction for substitution is mentioned 𝑎 leads to 𝑐. The transitivity property helps to remove the gaps
as follows based on [58]. among the variables if any. By adopting the above criteria, the
final reachability matrix is prepared and is shown in Table 3
(i) If the (𝑖, 𝑗) relationship in SSIM is 𝑉, the correspond- based on [14].
ing binary relationship is 1 for (𝑖, 𝑗) and is 0 for (𝑗, 𝑖).
(ii) If the (𝑖, 𝑗) relationship in SSIM is 𝐴, the correspond- 4.8. Level Partitioning. The fifth step involves extracting of
ing binary relationship is 0 for (𝑖, 𝑗) and is 1 for (𝑗, 𝑖). a hierarchical ordering from the reachability matrix by level
partitioning [59]. The reason for this step is to make easy
(iii) If the (𝑖, 𝑗) relationship in SSIM is 𝑋, the correspond- construction of the digraph from the reachability matrix.
ing binary relationship is 1 for both (𝑗, 𝑖) and (𝑖, 𝑗). From the final reachability matrix, the reachability and
(iv) If the (𝑖, 𝑗) relationship in SSIM is 𝑂, the correspond- antecedent sets for each success factor are established. The
ing binary relationship is 0 for both (𝑗, 𝑖) and (𝑖, 𝑗). level partition related to this research is shown in Table 4.
As the above rules, the initial reachability matrix is shown in 4.9. ISM Model. Based on final reachability matrix, the
Table 2. structural model is introduced as follows.
8 Mathematical Problems in Engineering
If there is any interrelationship among the successes 𝑗 indicators are “stand-alone” ones in their impacts, which
and 𝑖, an arrow is used to show this relationship. The output ones do not hold true, and which ones generate secondary
result is named as “digraph.” With the replacing of nodes, and higher order impacts. Cross impact matrix multiplication
the “digraph” will convert to an ISM model. In Figure 3, we applied to classification (MICMAC) can be used as the
illustrated ISM model structure. As this ISM model, the 15 best tool to meet the purpose. Based on this research, all
success factors are categorized in six levels. In the top level, successes are categorized into four modules: independent,
two successes appear, which are “information quality and autonomous, linkage, and dependent. Also it is divided into
sharing (S10)” in minimum level, and economic benefits (S7) two main parts: dependence power and driver power, which
and “maintaining the environmental awareness of suppliers are given in Figure 5:
(S15)” are found as maximum level illustrated in Figure 6. (i) Success factors in autonomous quadrant: in this
section, successes do not have strong driving power
4.10. MICMAC Analysis. Based on dependence power and and also weak dependence. Usually they keep discon-
driving power matrix (Table 5), it is desirable to seek a nected from the system life cycle, but in some parts
method by which we can draw up the hierarchical relation- they have a few connections, which could be strong.
ship among them and also establish which of the myriad These types of success are appointed in quadrant I.
Mathematical Problems in Engineering 9
15
Independence success
Linkage success factors (III)
factors (IV)
14
(2), (3), (8), (11)
(6), (5), (13) 13 (7)
12 (12) (15)
11 (4) (1)
10
Deriving power
7
Autonomous success factors (I) Dependence success factors (II)
6
5 (9) (10)
3 (14)
1
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Dependence power
Figure 5: MICMAC analysis towards implementing SSM, a case industry under study.
Success factor S4 S3 S5 S6 S11 S9 S13 S12 S15 S2 S8 S7 S14 S1 S10 Driver power
S1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1
S11 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1
S2 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 2
S5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
S12 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 2
S3 0 1 1 0 1 1 1 1 1 0 0 0 1 0 0 8
S6 0 1 1 0 1 1 1 1 1 0 0 0 0 0 1 8
S13 0 1 1 0 1 1 1 1 1 0 1 0 0 0 0 8
S4 0 1 1 0 1 1 1 1 1 0 0 0 0 1 0 8
S9 0 1 1 1 1 1 1 1 1 1 0 0 0 0 0 8
S10 0 1 1 0 1 1 1 1 1 0 1 0 0 0 0 8
S8 0 1 1 1 1 1 1 1 1 1 1 1 0 0 0 11
S14 1 1 1 1 1 1 1 0 1 1 1 0 1 0 0 11
S15 1 1 1 1 1 0 1 1 1 1 1 0 1 0 0 11
S7 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1 14
Dependence power 3 10 10 6 10 10 10 10 11 5 7 3 4 1 2
(ii) Success factors in dependent quadrant: this quadrant capabilities needed to achieve SSCM, as determined by the
includes the success which has weak driving power proposed drivers. During the production, customer service,
but in the other side has strong dependence power consumption, post-disposal disposition, and entire supply
and is represented in Section 2. chain, the local optimization of environmental factors will be
(iii) Success factors in linkage quadrant: in this section, considered [60].
the successes at the same time have strong driving Although industrial development in Iran is acceptable,
power and strong dependence. They are represented the consequences of this growth towards ecology should also
in Section 3. These successes are unstable and any be considered. Environmental issues are vital for industries,
reaction on them will make an impression on the and for both managers and executive engineers, implemen-
other successes. tation of SSCM is challenging. However, the establishment of
SSCM is not a simple job and it needs accurate analysis. The
(iv) Success factors in independent quadrant: in this output of this research demonstrates that Iranian industrial
section, the successes have enough strong driving top level managers have begun to arrange sustainability
power but very weak dependence power. These are concerns in sustainable development and environmental
placed in Section 4. science. But the point is not only that they are in the initial
phase but also that they have to get rid of the barriers step by
5. Discussions of Findings step.
The dependence and driving power demonstrate the 15
Our study has implications for SSCM managerial practice, in
success positions in 4 sections (Figure 5). The outcome of
terms of offering guidelines on those factors that managers
this research of success analysis with the ISM approach is
should pay attention to in order to adopt SSCM practices
presented as the following clarification:
in their organizations and supply chains. In particular, our
study underlines the role of institutional pressures on internal
(i) In autonomous success factors, just one success factor
pressures and commitment. Therefore, managers should be
S(9) appears in this section. Generally, autonomous
aware on how to “translate” these pressures into appropriate
successes are not strong drivers but are weak depen-
strategies and strategic collaboration with suppliers in order
dent and these success factors do not have much effect
to achieve sustainability. The role of green product design
on the approach. This graph shows that nearly all
as enabled by continuous improvement is important, and
successes play a significant role in the match on the
information needed for this purpose could be provided by
SSCM in electrical power supply industries.
appropriate information technologies. Logistics and ware-
housing should be also improved, and particular changes (ii) In dependent success factors area, there are two
in these operations will enable organizations and supply success factors S(10) and S(14). This section is men-
chains to become more environmentally friendly and will also tioned as dependent quadrant, and the success in
help them become economically viable and stable. Paying this section does not have strong driving power
attention to these drivers means acquiring and cultivating and also high dependence power. Considering the
particular employee skills; hence, this study proposes that information quality and sharing in industries will
managers should also attend to the different skills and drive power for these success factors [56] and also
Mathematical Problems in Engineering 11
high dependence power is indicated as the absence of SSCM practices. In second stage, we applied ISM and MIC-
corporative social obligation as a significant barrier MAC analysis to understand the relationships of 15 success
to the implementation of SSCM approach. These factors in the implementation of sustainable supply chain
point out that those industries are giving minimum management. It is impossible to reach all kinds of success;
attention to social issue and governmental regulation. therefore, companies need to know the most obtained success
So, in our research case, we need the government to factors based on their policy. This research summarizes the
build proper framework to draw special attention to data analysis of success factors and categorizes success factors
social responsibility for Iranian industries. Following with ISM and MICMAC support.
these points, the Iranian industries are not specially
In Figure 6, ISM diagram indicates the connection
motivated to social responsibility participation with-
between the success factors. There are six levels in this
out outside pressure [61].
diagram. One success factor drops in the first level, which is
(iii) Six success factors, S(1), S(2), S(3), S(8), S(11), and “information quality and sharing” (S10). This success factor is
B(15), fall in linkage success factors section. These less influential for the implementation of sustainable supply
success factors are organized into one group. Main-
chain management in electrical power supply industries. In
taining the environmental awareness of suppliers is
the middle levels, the four success factors appeared. In the
the main issue in this quadrant. The success factors
end, (S10) and (S15) that occur in the lower level play an
which are placed in this section have both strong
driving and at the same time strong dependence influential role in adopting sustainable supply chain manage-
power and they are unstable too. Any reaction on ment. Industries need to give more attention to these success
these successes will have an action on the other factors. The ISM outcome identifies the most significant
success and will also provide feedback. Also they success in electrical power supply industries which can easily
might agitate all system specifications [58, 62]. help to process for the implementation of sustainable supply
chain management.
(iv) S(4), S(5), S(6), S(7), S(12), and S(13) are given in
dependent success factors in section. These suc- Based on MICMAC analysis (Figure 5), one barrier (S6)
cess factors have a strong driving power but weak has been reported as autonomous. The success factor “firm’s
dependence power and this may be known as “key competitiveness” has little link to the system, with low
successes.” Among these success factors S(12) “fear- driving power and minimum dependency. It mentions that
lessness of failure” and S(7) “economic benefits” key variables are nominated as the success factor with a
are in top levels. The suppliers always are fighting very strong driving power. They are independent or linkage
to avoid recession in their workplace and practice criteria. We can call (S15) “problem in maintaining the
to implement the appropriate sustainability model, environmental awareness of suppliers” the high impact key
because they are faced with high investments and barrier, which also is dominated by (S1), (S2), (S3), (S8), and
low profit. Supply chain management contributes to (S11), respectively.
the overall accomplishment of a supply chain, and In this study we have not used a structured questionnaire
one poor supplier activity affects very quickly the to further test the framework. Instead we relied completely
performance of the whole chain [61]. S(5), S(6), and on a survey of the perceptions of experts for developing
S(13), “encouragement from customers,” “motivation the theoretical model, which alone may not be sufficient to
of suppliers and vendors towards green practices,” statistically test the framework, and this is a limitation of the
and “pressure from non-government organizations ISM method. For future research, a structured questionnaire
(NGOs) lobby,” are also in the same layers. Growing could be prepared and a survey must be conducted by
human skill in a company will supply goal attainment, targeting highly experienced supply chain professionals, who
being employee-oriented, and quality in productivity
embrace sustainability thinking in their operations to test
[59].
the framework. We believe that our study provides useful
thoughts for those who would like to further engage in theory
6. Conclusion building on the drivers of SSCM. In addition, Fuzzy ISM
In the era of globalization, industries are facing pressure to (FISM) [63, 64], which could be a progress over normal ISM,
greening their supply chain from intentional and domes- has been advised to expand ISM in fuzzy environment. It
tic levels. It is because the environmental concerns have could specify the several network structures in the principles
been gaining more attentions recently among organizations, and practices.
and an adequately significant number of factors related
to environmental and sustainable issues still need to be Conflicts of Interest
recognized from industrial viewpoints. In present work, we The authors declare that they have no conflicts of interest.
make an attempt to recognize the major critical success
factors that facilitate successful implementation of SSCM Authors’ Contributions
practices towards sustainable development. At first, based
on systematic review (Section 2) we focused on some high Professor Jianqiu Zeng made precious editorial contributions
prestige scientific journals to investigate dominant success in to improving the presentation of this paper.
12 Mathematical Problems in Engineering
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