A multicriteria model on calculating the Sustainable Business Excellence Index of a firm with fuzzy AHP and TOPSIS

Abstract

Purpose

The purpose of this paper is to provide an integrated methodology for benchmarking the sustainability of organizations. The fuzzy analytical hierarchy process (FAHP) and technique for order of preference by similarity to ideal solution (TOPSIS) methods have been used for this purpose. The FAHP is used to determine the weights of the criteria by decision makers, and the rankings of the alternatives are determined by TOPSIS. The proposed instrument is used to calculate the Sustainable Business Excellence Index (SBEI) and its potential impact on the formulation of firm strategy. To demonstrate the applicability of the model, illustrative examples are presented.

Design/methodology/approach

After a careful literature review, a sustainable business excellence framework is created and a fuzzy system is developed to assess firms’ sustainability. Finally, the SBEI is computed.

Findings

The results indicate that the suggested fuzzy approach is feasible for benchmarking the sustainability of organizations. It allows the decision makers to express their opinion regarding the importance of criteria and evaluate each alternative and then have this input coordinated in a quantitative fashion.

Research limitations/implications

Practitioners and consultants can use the instrument for conducting quality management benchmarking within and across organizations. Researchers can use the instrument in future studies for further theory development in this area.

Originality/value

As far as the authors are aware, no previous study research has assessed the SBEI of an organization with fuzzy sets. As such, it responds to a number of contemporary challenges in the business excellence theory, most importantly the broad need to identify agile organizations.

Citation

Metaxas, I.N., Koulouriotis, D.E. and Spartalis, S.H. (2016), "A multicriteria model on calculating the Sustainable Business Excellence Index of a firm with fuzzy AHP and TOPSIS", Benchmarking: An International Journal, Vol. 23 No. 6, pp. 1522-1557. https://doi.org/10.1108/BIJ-07-2015-0072