Abstract
The purpose of this paper is to apply the Balanced Scorecard (BSC) concept to the sustainable performance evaluation of emerging family farms in Jilin, China. A sustainable performance evaluation system was constructed based on the BSC. A questionnaire survey was used with a sample of 156 emerging family farms involved in the production of planting (grain, horticultural crops) and breeding (animal products) enterprises in Jilin, China. The Analytic Hierarchy Process (AHP)-Fuzzy Comprehensive Evaluation method (FCE) was used for the sustainable performance evaluation by different BSC dimensions, farm types, and regions. This empirical study revealed that the BSC is applicable for the farm sustainable performance evaluation in the Chinese context. The key is selecting suitable indicators for the evaluation index system while considering the particularity of market, resources, management, and personnel. The sustainable performance of the investigated family farms is in the slightly above moderate level as a whole. Financial performance and market performance are above moderate, while internal business process performance is moderate, and learning and growth performance is below moderate. They are facing difficult challenges to upgrade in terms of marketing and financing channels, branding, and organic production. Industrial differences existed in the farms’ sustainable performance. Farms combining planting and breeding have better sustainability, which could be a signal for transformation of the traditional single planting or breeding modes in China. The internal business process performance of grain farms is significantly less, due possibly to long-term policy support and protection with less of an emphasis on ecological outcomes. Subtle regional differences in the overall sustainable performance of surveyed family farms suggest that farm performance depends more on management than on external environment.
Highlights
This study tries to answer the following questions: Whether the Balanced Scorecard (BSC) is appropriate for the farm sustainable performance evaluation in the Chinese context? Will the successful adoption of the BSC be limited by the development history, phase, scale and level of family farms, cultural background and institutional factors? What indicators and methods should be used in this evaluation? The abovementioned questions will be resolved by fulfilling the following research aims: (1) This study proposed that the BSC model adapt to the issue of the Chinese family farm performance evaluation and develop a sustainable performance evaluation index system for Chinese family farms, which takes into account key performance indicators considered most relevant
The produced family farm sustainable performance index system based on the BSC and the justification of its suitability for the Chinese family farm sustainable performance evaluation included the following: (1) Indicators most commonly used in the literature to assess farm performance in view of the particularity of Chinese family farms were determined and used to develop the Chinese family farm sustainable performance index system
(3) The evaluation of family farm sustainable performance consisted of three logical constructs: each indicator weight in the overall system was determined using Analytic Hierarchy Process (AHP); the score of each first-level and second-level indicator was calculated and ranked using the Fuzzy Comprehensive Evaluation model; differences between four BSC dimensions, four industrial types, and three regions were compared and analyzed
Summary
The obvious trend is that non-financial indicators have been included in the enterprise performance evaluation system, and the balanced model of performance evaluation, combining financial indicators and non-financial indicators, has been formed gradually. One such tool, the Balanced Scorecard (BSC), was described by Atkinson as arguably the dominant framework in performance management [1]. The Balanced Scorecard was proposed by Kaplan and Norton in 1992 as an approach to tracking a firm’s performance; while retaining the main financial and value indicators, it introduces the motivation indicators for enterprises to create value—customers, internal business processes, learning and growth [2]. The introduction of the BSC system can be started with four questions: How should we satisfy shareholders (financial)? How should we satisfy customers (customer)? What advantages should we have (internal business process)? How can we enhance the level of value creation (learning and growth)? These four aspects form the four dimensions of the BSC
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
