Applying the Bayesian Network Model for Sustainable Supply Chain Management in the Palm Oil Industry: Implications for Open Innovation

Abstract

The palm oil industry is known for its social and environmental challenges that require innovative solutions. This study investigated the Bayesian network model designed to provide better sustainable supply chain transparency by considering social responsibility and ecological effects. The data was collected using questionnaires from 16 respondents responsible for the company's supply chain operations. The application of the Bayesian Network Model in sustainable supply chain management (SSCM) in the palm oil industry contributed to breakthroughs, especially in sustainability practices and efficient decision-making action to countermeasure and resolve complex interactions and uncertainties. The output presented the interaction between factors on sustainable supply chain management in the palm oil sector, demonstrating the mechanism for stakeholders' decision in open innovation to prioritize environmental sustainability and behavioral transparency in their supply chain operation. As a result, the company can exhibit an advanced and clean palm oil supply chain.