A Step towards Developing a Sustainability Performance Measure within Industrial Networks

Abstract

Despite the plethora of literature in sustainability and supply chain management in the recent years, a quantitative tool that measures the sustainability performance of an industrial supply network, considering the uncertainties of existing data, is hard to find. This conceptual paper is aimed at establishing a quantitative measure for the sustainability performance of industrial supply networks that considers aleatory and epistemic uncertainties in its environmental performance evaluation. The measure is built upon economic, environmental and social performance evaluation models. These models address a number of shortcomings in the literature, such as incomplete and inaccurate calculation of environmental impacts, as well as the disregard for aleatory and epistemic uncertainties in the input data and, more importantly, the scarce number of quantitative social sustainability measures. Dyadic interactions are chosen for the network, while the network members have a revenue-sharing relationship. This relationship promotes sharing of the required information for the use of the proposed model. This measure provides an approach to quantify the environmental, social and economic sustainability performances of a supply network. Moreover, as this measure is not specifically designed for an industrial sector, it can be employed over an evolving and diverse industrial network.

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