An Integrated Multi‐Criteria Decision Support Framework for the Selection of Suppliers in Small and Medium Enterprises based on Green Innovation Ability

Globally, organizations are under enormous pressure to implement green supply chain processes due to growing environmental concerns. Subsequently, organizations and firms have become more conscious of their suppliers’ green innovation ability. However, the selection of the most optimum supplier concerning green innovation ability remains a challenging task that needs to be analyzed. Thus, this study develops an integrated fuzzy and grey‐based methodology to analyze and prioritize suppliers for small and medium enterprises (SMEs) in the context of Saudi Arabia. Initially, the study identifies 4 criteria and 20 sub‐criteria through extensive literature review with respect to suppliers’ green innovation ability. Later, the Fuzzy Analytical Hierarchy Process (AHP) computes weights of criteria and sub‐criteria. Finally, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS)‐Grey was employed to rank the suppliers. The process of assigning weights to criteria and sub‐criteria involved twelve experts from academics and industry. The results of Fuzzy AHP indicated that the “Green Innovation Initiatives” is the most significant criterion for the supplier selection. The results of TOPSIS‐Grey revealed that the “Supplier‐3” is the most optimum supplier having the highest potential of adopting green practices among other suppliers. The overall results provide adequate feedback for organizations and firms to maximize their ability to curb environmental impacts from their upstream activities.