IDEAS home Printed from https://ideas.repec.org/a/spr/joinma/v29y2018i1d10.1007_s10845-015-1081-1.html
   My bibliography  Save this article

Fuzzy-based sustainability evaluation method for manufacturing SMEs using balanced scorecard framework

Author

Listed:
  • Sujit Singh

    (University of Malaya)

  • Ezutah Udoncy Olugu

    (University of Malaya)

  • Siti Nurmaya Musa

    (University of Malaya)

  • Abu Bakar Mahat

    (University of Malaya)

Abstract

Sustainability has become a necessity, partly due to the threats created by traditional manufacturing practices, and due to regulations imposed by stakeholders. Performance evaluation is an important component of sustainability initiatives in manufacturing organizations. This study proposes a sustainability evaluation method for manufacturing SMEs using integrated fuzzy analytical hierarchal process (FAHP) and fuzzy inference system (FIS) approach. The performance indicators are identified from literature considering the characteristics of SMEs. Balanced scorecard framework is used to categorize the indicators among its four aspects. The linguistic variables are used to collect the opinions of decision makers about the performance ratings and importance of the aspects and corresponding indicators. The FAHP method is applied to determine the relative weights of measures and indicators. The performance ratings of the organization with respect to indicators and relative weights of indicators are combined to obtain the weighted performance ratings. The weighted performance ratings are considered as inputs to FIS. The hierarchal FIS is applied to derive the overall sustainability performance. Using a case study of manufacturing SME, the sustainability score of the organization was elicited in accordance with this procedure. Consequently, a sensitivity analysis of the proposed method reveals the most important basic indicators affecting overall sustainability, identifying areas which decision makers should place special attention. This method can also assist managers of larger enterprises to assess the effectiveness of their sustainability strategies, especially when dealing with suppliers from the SMEs.

Suggested Citation

  • Sujit Singh & Ezutah Udoncy Olugu & Siti Nurmaya Musa & Abu Bakar Mahat, 2018. "Fuzzy-based sustainability evaluation method for manufacturing SMEs using balanced scorecard framework," Journal of Intelligent Manufacturing, Springer, vol. 29(1), pages 1-18, January.
    • Handle: RePEc:spr:joinma:v:29:y:2018:i:1:d:10.1007_s10845-015-1081-1
    DOI: 10.1007/s10845-015-1081-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10845-015-1081-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10845-015-1081-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Williamson & Gary Lynch-Wood & John Ramsay, 2006. "Drivers of Environmental Behaviour in Manufacturing SMEs and the Implications for CSR," Journal of Business Ethics, Springer, vol. 67(3), pages 317-330, September.
    2. Jan Lepoutre & Aimé Heene, 2006. "Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review," Journal of Business Ethics, Springer, vol. 67(3), pages 257-273, September.
    3. Cheng, Ching-Hsue, 1997. "Evaluating naval tactical missile systems by fuzzy AHP based on the grade value of membership function," European Journal of Operational Research, Elsevier, vol. 96(2), pages 343-350, January.
    4. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    5. Azadegan, Arash & Porobic, Lejla & Ghazinoory, Sepehr & Samouei, Parvaneh & Saman Kheirkhah, Amir, 2011. "Fuzzy logic in manufacturing: A review of literature and a specialized application," International Journal of Production Economics, Elsevier, vol. 132(2), pages 258-270, August.
    6. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    7. Basanth Kommadath & Runa Sarkar & Binayak Rath, 2012. "A Fuzzy Logic Based Approach to Assess Sustainable Development of the Mining and Minerals Sector," Sustainable Development, John Wiley & Sons, Ltd., vol. 20(6), pages 386-399, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hristos Karahalios, 2020. "Appraisal of a Ship’s Cybersecurity efficiency: the case of piracy," Journal of Transportation Security, Springer, vol. 13(3), pages 179-201, December.
    2. Yongqiang Su & Jinfa Shi & Manman Zhang, 2022. "Research on the Construction and Measurement of the HQDMI Evaluation Index System—A Case Study of China," Sustainability, MDPI, vol. 14(22), pages 1-30, November.
    3. Svetlana Drobyazko & Anna Barwinska-Malajowicz & Boguslaw Slusarczyk & Olga Chubukova & Taliat Bielialov, 2020. "Risk Management in the System of Financial Stability of the Service Enterprise," JRFM, MDPI, vol. 13(12), pages 1-15, November.
    4. Seyed Amirali Hoseini & Alireza Fallahpour & Kuan Yew Wong & Amir Mahdiyar & Morteza Saberi & Serdar Durdyev, 2021. "Sustainable Supplier Selection in Construction Industry through Hybrid Fuzzy-Based Approaches," Sustainability, MDPI, vol. 13(3), pages 1-19, January.
    5. Luis Enrique Valdez-Juárez & Dolores Gallardo-Vázquez & Elva Alicia Ramos-Escobar, 2018. "CSR and the Supply Chain: Effects on the Results of SMEs," Sustainability, MDPI, vol. 10(7), pages 1-27, July.
    6. Gustavo Dambiski Gomes de Carvalho & Luis Mauricio Martins de Resende & Joseane Pontes & Hélio Gomes de Carvalho & Leozenir Mendes Betim, 2021. "Innovation and Management in MSMEs: A Literature Review of Highly Cited Papers," SAGE Open, , vol. 11(4), pages 21582440211, October.
    7. Iman Adeinat, 2019. "Mediating Effects between Perspectives in Strategy Maps," Administrative Sciences, MDPI, vol. 9(1), pages 1-12, February.
    8. Azemeraw Tadesse Mengistu & Roberto Panizzolo, 2021. "Indicators and Framework for Measuring Industrial Sustainability in Italian Footwear Small and Medium Enterprises," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    9. Luis Jesús Córdova-Aguirre & Juan Manuel Ramón-Jerónimo, 2021. "Exploring the Inclusion of Sustainability into Strategy and Management Control Systems in Peruvian Manufacturing Enterprises," Sustainability, MDPI, vol. 13(9), pages 1-17, May.
    10. Azemeraw Tadesse Mengistu & Roberto Panizzolo, 2023. "Analysis of indicators used for measuring industrial sustainability: a systematic review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 1979-2005, March.
    11. Olena Liakh & Francesca Spigarelli, 2020. "Managing Corporate Sustainability and Responsibility Efficiently: A Review of Existing Literature on Business Groups and Networks," Sustainability, MDPI, vol. 12(18), pages 1-42, September.
    12. Afrasiabi, Ahmadreza & Chalmardi, Mazyar Kaboli & Balezentis, Tomas, 2022. "A novel hybrid evaluation framework for public organizations based on employees’ performance factors," Evaluation and Program Planning, Elsevier, vol. 91(C).
    13. Małgorzata Jasiulewicz-Kaczmarek & Patryk Żywica & Arkadiusz Gola, 2021. "Fuzzy set theory driven maintenance sustainability performance assessment model: a multiple criteria approach," Journal of Intelligent Manufacturing, Springer, vol. 32(5), pages 1497-1515, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Parisa Salimzadeh & Jerry Courvisanos, 2015. "A Conceptual Framework for Assessing Sustainable Development in Regional SMEs," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-17, December.
    2. Brigitte Hoogendoorn & Daniela Guerra & Peter Zwan, 2015. "What drives environmental practices of SMEs?," Small Business Economics, Springer, vol. 44(4), pages 759-781, April.
    3. Brigitte Hoogendoorn & Peter van der Zwan & Daniela Guerra, 2014. "What drives environmental practices of SMEs?," Scales Research Reports H201405, EIM Business and Policy Research.
    4. Lorraine Uhlaner & Marta Berent-Braun & Ronald Jeurissen & Gerrit Wit, 2012. "Beyond Size: Predicting Engagement in Environmental Management Practices of Dutch SMEs," Journal of Business Ethics, Springer, vol. 109(4), pages 411-429, September.
    5. Lin, Sheng-Hau & Zhao, Xiaofeng & Wu, Jiuxing & Liang, Fachao & Li, Jia-Hsuan & Lai, Ren-Ji & Hsieh, Jing-Chzi & Tzeng, Gwo-Hshiung, 2021. "An evaluation framework for developing green infrastructure by using a new hybrid multiple attribute decision-making model for promoting environmental sustainability," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    6. Pishchulov, Grigory & Trautrims, Alexander & Chesney, Thomas & Gold, Stefan & Schwab, Leila, 2019. "The Voting Analytic Hierarchy Process revisited: A revised method with application to sustainable supplier selection," International Journal of Production Economics, Elsevier, vol. 211(C), pages 166-179.
    7. Pepe, Cosetta & Musso, Fabio & Risso, Mario, 2009. "Retailers and SME suppliers social responsibility in international supply chains," MPRA Paper 31112, University Library of Munich, Germany.
    8. Halkos, George & Nomikos, Stylianos, 2021. "Corporate social responsibility: Trends in global reporting initiative standards," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 106-117.
    9. Sajid Ali & Sang-Moon Lee & Choon-Man Jang, 2017. "Determination of the Most Optimal On-Shore Wind Farm Site Location Using a GIS-MCDM Methodology: Evaluating the Case of South Korea," Energies, MDPI, vol. 10(12), pages 1-22, December.
    10. Tudor, T.L. & Bannister, S. & Butler, S. & White, P. & Jones, K. & Woolridge, A.C. & Bates, M.P. & Phillips, P.S., 2008. "Can corporate social responsibility and environmental citizenship be employed in the effective management of waste?," Resources, Conservation & Recycling, Elsevier, vol. 52(5), pages 764-774.
    11. Block, Joern & Wagner, Marcus, 2014. "Ownership versus management effects on corporate social responsibility concerns in large family and founder firms," Journal of Family Business Strategy, Elsevier, vol. 5(4), pages 339-346.
    12. Cheng, Ching-Hsue & Yang, Kuo-Lung & Hwang, Chia-Lung, 1999. "Evaluating attack helicopters by AHP based on linguistic variable weight," European Journal of Operational Research, Elsevier, vol. 116(2), pages 423-435, July.
    13. Patricia Laurens & Christian Le Bas & Stéphane Lhuillery & Antoine Schoen, 2017. "The determinants of cleaner energy innovations of the world’s largest firms: the impact of firm learning and knowledge capital," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(4), pages 311-333, May.
    14. Ester Guijarro & Cristina Santadreu-Mascarell & Beatriz Blasco-Gallego & Lourdes Canós-Darós & Eugenia Babiloni, 2021. "On the Identification of the Key Factors for a Successful Use of Twitter as a Medium from a Social Marketing Perspective," Sustainability, MDPI, vol. 13(12), pages 1-15, June.
    15. Lin, Sheng-Hau & Huang, Xianjin & Fu, Guole & Chen, Jia-Tsong & Zhao, Xiaofeng & Li, Jia-Hsuan & Tzeng, Gwo-Hshiung, 2021. "Evaluating the sustainability of urban renewal projects based on a model of hybrid multiple-attribute decision-making," Land Use Policy, Elsevier, vol. 108(C).
    16. Huali Chen & Yuka Ito & Marie Sawamukai & Tomochika Tokunaga, 2015. "Flood hazard assessment in the Kujukuri Plain of Chiba Prefecture, Japan, based on GIS and multicriteria decision analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 78(1), pages 105-120, August.
    17. Jochen Schmid & Marieta Olaru & Ana-Maria Verje, 2017. "The Effect of Sustainable Investments to the Economic Objectives of the Company in Relation to the Total Quality Management," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(S11), pages 939-939.
    18. Irene Monsonís-Payá & Mónica García-Melón & José-Félix Lozano, 2017. "Indicators for Responsible Research and Innovation: A Methodological Proposal for Context-Based Weighting," Sustainability, MDPI, vol. 9(12), pages 1-29, November.
    19. Johan Graafland & Hugo Smid, 2016. "Environmental Impacts of SMEs and the Effects of Formal Management Tools: Evidence from EU's Largest Survey," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(5), pages 297-307, September.
    20. Joern H. Block & Marcus Wagner, 2014. "The Effect of Family Ownership on Different Dimensions of Corporate Social Responsibility: Evidence from Large US Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 23(7), pages 475-492, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joinma:v:29:y:2018:i:1:d:10.1007_s10845-015-1081-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.