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Knowledge management (KM) has been gradually established as a strong methodology to support business viability, competitiveness and growth; however, the lack of maturity is obvious, as evidenced by divergent points of view in critical sub‐domains of the related theory and practice, such as the spectrum of processes and the clusters of tactics scheduled to underpin them. The systems thinking logic, the discipline for seeing structures underlying complex phenomena, is perceived as a promising direction for consolidating the various approaches and developing a holistic KM paradigm. Through the integration of the fragmented landscape of knowledge management on a transparent and concrete framework based on cause‐effect relationships, not only the underlying theoretical assumptions are clarified and subjected to further analysis at a strategic level, but also practical issues concerning planning and decision making become less complicated, increasing effectiveness.

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.

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.

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.

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.

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.